Posted by Dave in PA on February 07, 2007 at 19:00:06:
Seller claims he’s current, no liens and payoff is under 200K. We’ll see… He’s coming back up to clean up and empty the garage.
Appraisal doesn’t add up - Posted by Dave in PA
Posted by Dave in PA on February 07, 2007 at 10:22:36:
A home was appraised (REFI) 2-3 years ago for around 255K. Seller put 30K (he claims) into it. It was listed for 285K for 4 months and didn’t sell.(listing agreement expired) He moved to Florida 4 months ago and went into a home there on a lease option. This is the same home mentioned in the message titled “Ownership and value”.
I had comps run and it’s value is coming up between 215-230K. Another investor had the same situation 2 miles away with the same numbers.
Can I trust an appraisal at all? Now I have to break the news to the seller that he doesn’t have over 85K in equity. It’s more like 30K.
Seller is credit conscience since he needs to qualify for a loan on the Fla L/O. (1 year limit.) This is why I determined that L/O is the best way to go here.
Re: Appraisal doesn’t add up - Posted by David Krulac
Posted by David Krulac on February 07, 2007 at 18:11:47:
Appraisals are:
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only as good as the appraiser who does them. some are good some are bad.
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in any event appraisals are only good for 6 months MAX. 3 year old appraisals aren’t worth the paper printed on.
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in a declining market, it is easy for the value 3 years ago to be more than now. real estate values don’t always appreciate in every market every year.
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trust no one except yourself.
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nice name, where in Pa.
Re: Appraisal doesn’t add up - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on February 07, 2007 at 12:12:26:
A REFI appraisal means nothing at all, often on the day it is done. The lender is the only one who has an interest, and is often willing to stretch a bit.
What sellers put into a property, or say they did, has no bearing on value very often. Usually they stretch a bit too. Often they are talking about money spent on things that add to their on convenience, or perception of luxury living. Carpet, drapes, paint, landscaping and so on rarely add anything at all to the real value.
He moved to FL from PA. He is motivated.
You don’t have to worry about “breaking the news” to him. He already knows the facts. He is just looking for a miricle, hopefully that’s not you.
Re: Appraisal doesn’t add up - Posted by Gene
Posted by Gene on February 07, 2007 at 10:36:57:
An appraisal gives an profesional opinion of value at that moment of time. Markets change. And a house is only worth what someone is willing to pay…today.
Gene
Re: Appraisal doesn’t add up - Posted by Dave in PA
Posted by Dave in PA on February 07, 2007 at 18:56:04:
Nazareth, PA
Re: Appraisal doesn’t add up - Posted by Dave in PA
Posted by Dave in PA on February 07, 2007 at 12:29:30:
I’ll break the news to him that he’s paying for the appraisal…
Re: Appraisal doesn’t add up - Posted by Dave in PA
Posted by Dave in PA on February 07, 2007 at 11:55:29:
This is true. I guess I’ll have to get an unbaised appraisal done.
Re: Appraisal doesn’t add up - Posted by ski
Posted by ski on February 07, 2007 at 19:47:33:
If the additional are has not been permitted the county does not know it exists. If that be the case be careful. They can disallow a permit and make you tear it down or get permits, if possible.
Re: Appraisal doesn’t add up - Posted by Don (VA)
Posted by Don (VA) on February 07, 2007 at 17:45:59:
When Ed said, “You don’t have to worry about “breaking the news” to him. He already knows the facts. He is just looking for a miricle, hopefully that’s not you.” I think (sorry, Ed, if I’m misinterpreting) he meant that the bad news is that the owner doesn’t have any equity. You say he’s credit-conscious. But he’s upside down on a property, and he walks away from it…it’s vacant…and he’s renting out of state? I wonder if he’s still current on his payments. Maybe a short sale (if he’s gotten behind) is the way to go.