Timestamps! 1:20 How often homes don't appraise 1:49 2 main reasons why an appraisal comes in short 4:47 Who is an appraisal good for? 5:43 Talking with your realtor after a short appraisal 6:42 Reconsideration of value 7:36 Seller comes down in value 7:52 What the buyer can do 8:23 Splitting the difference with the seller 8:48 Getting a new appraisal 11:02 Q&A 13:22 FHA vs Conventional to qualify for more mortgage
What happens if our appraiser keeps appraising properties we are putting offers on just a smidge $1000 over asking but Zestimate and other real estate appraisal estimators are evaluating it for $20-$30k lower than asking… should I be suspicious of some shady appraising going on? I know Zestimate and other sources aren’t always correct but market is showing similar condos in the building sitting for $200k more and not selling indicating overprice. Our condo is old and dated and although $200k less can still be overpriced.
Hi I'm a buyer. the house I wanted it didn't appraise. The Seller wont negotiate because they believe their house is more than the appraise. They asking us to look for another appraiser from a different lender. My question is Can I look for another appraiser from a different lender?
What do you mean when you say, People are willing to pay 200,000 but its actually worth 180,000? Its worth what people are willing to pay for it. That is what the value is. What someone will give you for it......... please clarify?
I’m a buyer agent in Columbus and appraisals are often coming in significantly short here due to so many multiple offers and rising values. I recently worked with first time buyers who changed lenders right after the appraisal came in due to excessive lender fees. This change saved buyers a lot however the new lender insisted on a new appraisal and the second one came in 8k less than the one that was done a few weeks prior. ( the first one came in close to contract price) The sellers agent was furious and it led to challenging negotiations to put it mildly. Appraisers egos are really in the mix as well.
Hmm interesting that they wanted a new appraisal instead of just transferring it in. Ugh, I'm so tired to seller's agents getting emotional. Their job is to represent their client, not lose their cool and stress their client out. Ineffective agents are the ones who get emotional
I love how he keeps implying that the appraiser is the one that has the ego. Not the Sellers, which are unwilling to lower their sale price. Even though the Sellers likely didn't even come up with the listing price of their home. Nor the two Realtors. One the Buyers agent doesn't want to look bad that they didn't reach the market and advise their clients to present a lower offer. The Listing Agent doesn't want to look bad that they may have not advise their clients that their listing price may not appraiser based on market data. More often than not, agents fail to provide better comparable market data to the appraiser, for them to warrant a change in their report.
my agent doesn’t do her best for me at all she will give me a few words of encouragement then turn around and say something that totally goes against what she just said she tells me to be positive and not give up but then says stuff like “ if someone else puts a offer in our chances are gone or she will say you don’t have many options with your loan amount” she sends me houses that clearly says no FHA she sends me the most hideous houses and when I sent nice ones that’s within my price range she will find a reason why I won’t qualify she doesn’t even try it’s starting to feel intentional
There are many more than two reasons why the appraiser's opinion of value might be lower than the contract price, multiple offers in a low supply market does 'artificially'' jack up value, but that's simple supply and demand . . . lately its been historically low interest rates, Covid-19 also has effected supply, both issues are very short term, 0.25% increase in rates generally equates to -10% of buying power, brokers should hip their buyers to this fact. More often than not its seller's wishfull thinking and uniformed buyers. I am an appraiser, when my value opinion is below the contract price I always as the buyer's agent the sales they used to justrify the offer price, or a CMA - most often the agent has not prepared a CMA [which is negligence by the way], the sales the send just so happen to have closed at the contract price . . . . . sale price is NOT an element of comparision . . . . the sales are NOT comps. Uniformed buyers is very very common reason. Brokers are sales people, but they forget they have a fiduciary duty to their clients, that part seems to be lacking. Ego . . . .oh well, the appraiser's opinion is actually based on real comparables, not ego - 'bad value' that one is rich!
Do appraisers take into account whether appliances work or there are leaks that the appraiser can’t see but the inspector picked up into account when evaluating value? Does an appraiser appointed by the lender have access to an inspection report? I ask because a property priced similarly and have similar specs with one of the two having additional defects (whether seen or not) effects value… does it not? Also, if an old place is significantly priced lower than an updated condo (provided sq feet and layout is all the same) people might think they are getting a deal… then if the appraiser values it at the list price but the old place has additional defects the appraiser doesn’t know about, how could it appraise for the list price?
another point - most people don't realize appraisers are on the hook for every appraisal completed for a full FIVE YEARS as of the effective date, if the loan goes south the lenders come after us, so our value opinion must be very well supported - one bad appraisal can and does ruin a career. I'm a broker too, appriasers are not the enemy. The new headline is appraisers are racist, that's why the communities of color values are so much lower . . . this is a joke, especially funny when considering HUD policies like redlining and restrictiive covenants, lenders lending on a contract sale were probably the worst culprits.
Whose liable when the appraiser decides without running comparables that the house won't appraise? He doesn't complete the job and we were not made aware of this until the week prior to closing a 40 day contract? Super curious what your OPINION is. We actually thought it would appraise for more than we are asking for it. 130k for a 1200 sqft home over a basement on 3 acres in the country. Private well and septic. A chicken coop building, another large machine shed and a garden shed. The home needs some work but is in livable condition. Level lot. So weird. Unless we are somehow really far off this fella sounds like he may have an ego problem.
When I pay for a service and get a professional opinion I would think more than one would be a welcomed approach. Though it is not. Also, the fact you have to define if the appraisal is for purchase or refi makes me think there will be different values for each. My personal experience with appraisals I have found to be very frustrating and not so dependable. I think the real estate industry needs a full refresh with removing all the unethical loop holes.
Kyle, why is a low appraisal a bad thing for the buyer and why would the buyer ever want the appraisal to go up? Just to not prolong the process? I don't think thats worth it. Under normal circumstances, appraisal is a safety net or a pump-the-breaks-and-be-reasonable precaution for the seller. Thanks for the info. I'm a brand new subscriber and I have watched almost all your videos.
It can be a safety net like you mentioned. However, it’s good to remember that an appraisal is subjective. Just because an appraiser issues a value based on their opinion does not mean that’s the “true” value of a home. You can get 5 appraisals and get 5 different values. Also, a cancelled deal usually means a buyer already lost an inspection fee and appraisal fee adding up to around $1k
I'm not entirely sure what you mean, but a lender will never accept anything except from the original appraiser that was assigned the property to stay in compliance with AIR requirements
at what point do you have to pay your down-payment is this before the contracts are signed after etc very odd question just trying to have my timing right save a little but more when i purchase in a few months
I have a large credit balance mistakenly report to my credit profile because I usually pay it off before closing date. But my payment didn't post before the closing date. Can I have my mortgage broker do a soft credit score pull after a month when the new credit balance reports on my credit profile to recalculate DTI and hopefully a better rate?
If the loan already closed, then the interest rate can't be changed. If the loan hasn't closed yet, then the broker can pull new credit. Must be a hard pull.
Hell not lender B request new appraisal after lender A denied just remember buyer expending from his own pocket $500 for every appraisal good business for appraisal contractor I smell all real estate bussines is a scam ripoff 👎👎
Timestamps!
1:20 How often homes don't appraise
1:49 2 main reasons why an appraisal comes in short
4:47 Who is an appraisal good for?
5:43 Talking with your realtor after a short appraisal
6:42 Reconsideration of value
7:36 Seller comes down in value
7:52 What the buyer can do
8:23 Splitting the difference with the seller
8:48 Getting a new appraisal
11:02 Q&A
13:22 FHA vs Conventional to qualify for more mortgage
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What happens if our appraiser keeps appraising properties we are putting offers on just a smidge $1000 over asking but Zestimate and other real estate appraisal estimators are evaluating it for $20-$30k lower than asking… should I be suspicious of some shady appraising going on? I know Zestimate and other sources aren’t always correct but market is showing similar condos in the building sitting for $200k more and not selling indicating overprice. Our condo is old and dated and although $200k less can still be overpriced.
Hi I'm a buyer. the house I wanted it didn't appraise. The Seller wont negotiate because they believe their house is more than the appraise. They asking us to look for another appraiser from a different lender. My question is Can I look for another appraiser from a different lender?
What do you mean when you say, People are willing to pay 200,000 but its actually worth 180,000? Its worth what people are willing to pay for it. That is what the value is. What someone will give you for it......... please clarify?
I just recorded a personal video reply for you: vid.us/mfvf6t
@@WinTheHouseYouLove That makes sense. Thanks.
I’m a buyer agent in Columbus and appraisals are often coming in significantly short here due to so many multiple offers and rising values. I recently worked with first time buyers who changed lenders right after the appraisal came in due to excessive lender fees. This change saved buyers a lot however the new lender insisted on a new appraisal and the second one came in 8k less than the one that was done a few weeks prior. ( the first one came in close to contract price) The sellers agent was furious and it led to challenging negotiations to put it mildly. Appraisers egos are really in the mix as well.
Hmm interesting that they wanted a new appraisal instead of just transferring it in. Ugh, I'm so tired to seller's agents getting emotional. Their job is to represent their client, not lose their cool and stress their client out. Ineffective agents are the ones who get emotional
But when people are willing to pay more, THAT IS THE MARKET
I love how he keeps implying that the appraiser is the one that has the ego. Not the Sellers, which are unwilling to lower their sale price. Even though the Sellers likely didn't even come up with the listing price of their home. Nor the two Realtors. One the Buyers agent doesn't want to look bad that they didn't reach the market and advise their clients to present a lower offer. The Listing Agent doesn't want to look bad that they may have not advise their clients that their listing price may not appraiser based on market data. More often than not, agents fail to provide better comparable market data to the appraiser, for them to warrant a change in their report.
my agent doesn’t do her best for me at all she will give me a few words of encouragement then turn around and say something that totally goes against what she just said she tells me to be positive and not give up but then says stuff like “ if someone else puts a offer in our chances are gone or she will say you don’t have many options with your loan amount” she sends me houses that clearly says no FHA she sends me the most hideous houses and when I sent nice ones that’s within my price range she will find a reason why I won’t qualify she doesn’t even try it’s starting to feel intentional
Run fast and get a new agent
Is it better to work with broker or loan officer bank etc.
There are many more than two reasons why the appraiser's opinion of value might be lower than the contract price, multiple offers in a low supply market does 'artificially'' jack up value, but that's simple supply and demand . . . lately its been historically low interest rates, Covid-19 also has effected supply, both issues are very short term, 0.25% increase in rates generally equates to -10% of buying power, brokers should hip their buyers to this fact. More often than not its seller's wishfull thinking and uniformed buyers. I am an appraiser, when my value opinion is below the contract price I always as the buyer's agent the sales they used to justrify the offer price, or a CMA - most often the agent has not prepared a CMA [which is negligence by the way], the sales the send just so happen to have closed at the contract price . . . . . sale price is NOT an element of comparision . . . . the sales are NOT comps. Uniformed buyers is very very common reason. Brokers are sales people, but they forget they have a fiduciary duty to their clients, that part seems to be lacking. Ego . . . .oh well, the appraiser's opinion is actually based on real comparables, not ego - 'bad value' that one is rich!
Thanks for the input, Chuck
Do appraisers take into account whether appliances work or there are leaks that the appraiser can’t see but the inspector picked up into account when evaluating value? Does an appraiser appointed by the lender have access to an inspection report? I ask because a property priced similarly and have similar specs with one of the two having additional defects (whether seen or not) effects value… does it not? Also, if an old place is significantly priced lower than an updated condo (provided sq feet and layout is all the same) people might think they are getting a deal… then if the appraiser values it at the list price but the old place has additional defects the appraiser doesn’t know about, how could it appraise for the list price?
another point - most people don't realize appraisers are on the hook for every appraisal completed for a full FIVE YEARS as of the effective date, if the loan goes south the lenders come after us, so our value opinion must be very well supported - one bad appraisal can and does ruin a career. I'm a broker too, appriasers are not the enemy. The new headline is appraisers are racist, that's why the communities of color values are so much lower . . . this is a joke, especially funny when considering HUD policies like redlining and restrictiive covenants, lenders lending on a contract sale were probably the worst culprits.
Good points
Thank you so much for posting this video!!! Literally taking notes on my desk like it's a class, except it's fun! Lol
Haha! Thanks for watching. :)
I have a unique situation i need advice on?
Whose liable when the appraiser decides without running comparables that the house won't appraise? He doesn't complete the job and we were not made aware of this until the week prior to closing a 40 day contract? Super curious what your OPINION is.
We actually thought it would appraise for more than we are asking for it. 130k for a 1200 sqft home over a basement on 3 acres in the country. Private well and septic. A chicken coop building, another large machine shed and a garden shed. The home needs some work but is in livable condition. Level lot. So weird. Unless we are somehow really far off this fella sounds like he may have an ego problem.
When I pay for a service and get a professional opinion I would think more than one would be a welcomed approach. Though it is not. Also, the fact you have to define if the appraisal is for purchase or refi makes me think there will be different values for each. My personal experience with appraisals I have found to be very frustrating and not so dependable. I think the real estate industry needs a full refresh with removing all the unethical loop holes.
I agree with removing unethical loops! For sure!
Kyle, why is a low appraisal a bad thing for the buyer and why would the buyer ever want the appraisal to go up? Just to not prolong the process? I don't think thats worth it. Under normal circumstances, appraisal is a safety net or a pump-the-breaks-and-be-reasonable precaution for the seller. Thanks for the info. I'm a brand new subscriber and I have watched almost all your videos.
It can be a safety net like you mentioned. However, it’s good to remember that an appraisal is subjective. Just because an appraiser issues a value based on their opinion does not mean that’s the “true” value of a home.
You can get 5 appraisals and get 5 different values. Also, a cancelled deal usually means a buyer already lost an inspection fee and appraisal fee adding up to around $1k
Under what circumstances would you seek outside approval on an appraisal?
I'm not entirely sure what you mean, but a lender will never accept anything except from the original appraiser that was assigned the property to stay in compliance with AIR requirements
at what point do you have to pay your down-payment is this before the contracts are signed after etc very odd question just trying to have my timing right save a little but more when i purchase in a few months
Great question!!
You won't pay your down payment until the very end when you're at the closing table and signing final documents with the seller.
I have a large credit balance mistakenly report to my credit profile because I usually pay it off before closing date. But my payment didn't post before the closing date. Can I have my mortgage broker do a soft credit score pull after a month when the new credit balance reports on my credit profile to recalculate DTI and hopefully a better rate?
If the loan already closed, then the interest rate can't be changed.
If the loan hasn't closed yet, then the broker can pull new credit. Must be a hard pull.
Hell not lender B request new appraisal after lender A denied just remember buyer expending from his own pocket $500 for every appraisal good business for appraisal contractor I smell all real estate bussines is a scam ripoff 👎👎
It’d be nice if they could use it, but federal guidelines don’t allow it because of the issues that happened with the 2008 housing crash