Posted by Marc on December 17, 2002 at 12:32:10:
I’ve never had a bank do a full-blown appraisal on a property, but I have had a REALTOR, on behalf of the bank, do a market analysis. I’m not sure which one is worse, but either way, even if the appraisal comes back higher than you might want it to, the bank still has to make the ultimate decision if they want the property back or not.
Good Luck,
Marc
Short Sale - Bank Will Do An Appraisal? - Posted by BigHarold
Posted by BigHarold on December 17, 2002 at 12:24:17:
I’m doing my first short sale, and I’ve gotten all the signed docs to the bank, awaiting approval on my short sale offer. The bank rep, after sitting on this for 3 weeks, finally gets back to me and says, based on the pictures of the property damage, will do another full-blown appraisal of the property. Is this a good thing, or will this doom my proposal?
Here are the numbers on it - it’s a townhouse that’s only 2 years old, that the owners told me appraised one year ago for $129K. They have a mortgage on it for $118K that’s going into foreclosure. My proposal to the bank was for $70K, as there are 2 years of back taxes and utility bills attached to the price, that equal about $5K to $7K. I wanna get it for this price to immediately flip it to an investor for around $85K-$90K.
I’m thinking the appraisal will bust my low bid - aren’t they supposed to just take my word for it? Has anybody here had to deal with the bank requesting another appraisal? How did you deal with it, if so? Any help here would be greatly appreciated, as I REALLY need this deal to go through, and make at least $5K from it.
Re: Short Sale - Bank Will Do An Appraisal? - Posted by Gil Galvan
Posted by Gil Galvan on December 20, 2002 at 09:26:20:
Hi, i am new at this i been studing some courses about real state investing, Like (Louis brown from Georga, Albert Lowry and others) but i have a question on your deal. How would you offer some much less for the property and which way you have to buy, from the lender or the owner? thank you much and happy investings. Gil Galvan
Re: Short Sale - Bank Will Do An Appraisal? - Posted by Mark_IL
Posted by Mark_IL on December 17, 2002 at 20:47:15:
Tell the bank you have the only key and schedule the appraisal so you can meet the appraiser or realtor at the property. These folks are end users of homes and give him the hardship story of the owners, tell him you are trying to help the owner out of a bad situation where he will lose everything. Tell the appraiser that you know value is a subjective thing and that for you to be able to help the owners out the value needs to come in on the low end of the range. Not anything unethical, these things are subjective. Tell him that his evalualation will determine if these “poor folks” will get the help they need? Lay on the guilt and see what happens.
Also check with the city and see if they have a pre-sales inspection program or occupency permit program and have the city or village inspect the place for code violations. Again the longer the list the better your chances.
IF the bank does not want to dump the property and be done with it then you will need to build a case making the property very unattractive for them to take back and sell as an REO.
Other facts that will help, look for comps in the area of other vacant REO junker properties like yours that have sold, these comps should be way lower than retail.
Find the most expensive contractor and have him go through the property and give you a quote on all the work that needs to be done to bring the place upto a marketable condition. Again the higher the number the better.
Nothing unethical just document the facts, repairs, costs, as-is FMV, pending bankruptcy, pictures and keep working on them.
Mark
Re: Short Sale - Bank Will Do An Appraisal? - Posted by James Strange
Posted by James Strange on December 17, 2002 at 17:52:49:
“aren’t they supposed to just take my word for it?”
Would you just take my word for the property value of a house that was trying to sell? Lets face it if they take your 70k they lose 48K. Someone will have to answer why they wrote that off.
Re: Short Sale - Bank Will Do An Appraisal? - Posted by TeddyB_SC
Posted by TeddyB_SC on December 17, 2002 at 17:04:05:
I think that if the bank is willing to go to the expense of an appraisal, they must be considering your offer. If nothing else, they may come back with a counter offer.
This will at least open up a line of communication between you and the bank.