- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Replies (10)
Good Morning cub.
Were you given a copy of both appraisals? I would look at them both. It could be as simple as the first appraiser missing a sales comparable . There could be other factors as well such as square footage. In my opinion, in these volitale times, the $7,000 difference is not as unusual as you think. You are fine.
- cubluver8
- Contributions:9
No, I was never given a copy of the first one and the second one I will get when we close next Thursday.
I just thought the difference was A LOT!
- Michael Mazursky, "FHA Mortgage"
- Contributions:314
One of the disclosures you sign is "Right To Receive Appraisal". You should get a copy of both. You should not have to wait until the loan closes. Also, if you get 5 appraisals from 5 different appraisers, chances are you wil get 5 different values.
- MortgageShopper
- Contributions:84
If I may piggyback on this discussion, during our closing yesterday (Yes! We closed!), I was told that the appraisal almost always comes back at the Purchase Price. So if we'd paid $5000 more for our house, the appraisal would have come back at $5000 more, UNLESS we overpaid. So if we underpaid, our house would be under-appraised. Is this your understanding?
- Ken Kopper
- Contributions:1578
Contact both lenders today and request your appraisal be emailed to you, you shouldnt have to wait for settlement. Its good that you can at least get the transaction done and the $7k on paper allows you to more than cover that.
Where I would be concerned is if the 2nd appraisal came back @ 155k and the LO called you back and was trying to upsell you to take cash out or pay off bills.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
MS,
Your thought process is correct because an appraisal or appraised value is supposed to be what a WILLING BUYER and Seller come to terms at.. Not under duress, Not an inside deal.. However, with the directional arrow pointing south easterly in value direction, the paid $5,000 more and the appraisal might support it, is an assumption and possibly a stretch to me in today's market. GLAD YOU CLOSED and CONGRATS!
- Martin Wareing, "Martin Wareing"
- Contributions:3772
cub,
Glad the value may have worked here for you. 5% disparity is not huge. However, teh CU did not hose you either, probably. I would venture the private Mortgage guy was aware of your disappointment (that is why you went there) and made a phone call to the appraiser. Not necessarily to make up or push the value, but to be sure it was "going to come in" as if it were the same, you would have 2 denials and 2 appraisal bills. It is much easier for the 2nd person to be a hero... they already knew the only problem in the way. Happy for you that you can get it done and perhaps with the crazy market, maybe even at a lower rate/costs... Keep rockin'.
- shapiroamg
- Contributions:3058
I have seen CU that hire extremely conservative appraisers (not that there is anything wrong with that). If the appraiser holds to a strict radius (.5 or 1 mile) around your home looking for comps, then you will very well get two different estimates of values.
Of course if the non-Cu appraiser is using comps too far away, then you should be concerned with that as well.
- cubluver8
- Contributions:9
Yes, I am combining a 1st and 2nd mortgage (1st at 7.40% and 2nd at 10.9% and getting my taxes and insurance in escrow) to a fixed rate 30 year at 6.0%. They are offering me a great deal and our LO is not "upselling" me to take out the remaining money at all. She told me I am better off to leave it in there and at least have SOME equity in the house!
My CU appraiser said that they could not use any split level or 2 story homes as comps (mine is a ranch) but yet the other appraiser said we could. The CU appraiser also said he could not use any FSBO properties and the private appraiser said that was ok too.
It just seems like there should be a formula or something they work with....?!?!?
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
Each bank or source of funds has the right to decide what criteria to lend on, this includes what comparables are acceptable as part of the collateral. After all, they are lending their money, they get to make the rules.
Your LO sounds to be very much looking out for your best interest and I wouldn't have any second thoughts about what has happened so far. The appraisal value is strictly for the purpose of completing your loan, and once it is done, that report has no further meaning or implication upon the market value of the home.
Appraisals
Hi all.
I contacted my credit union to have an appraisal done to get my house refinanced. They came back with $134,000 which was not enough to cover the fees so they said it couldn't be done.
I contacted a private lender and their appraiser came back with $141,000. I asked my loan officer if the appraiser over-valued my house for any reason and she said she only needed $138,000 to close so she didn't think so.
I just can't wrap my head around a $7,000 difference. I mean, I would understand $1-2,000, bit $7,000?? Any ideas?
Thanks!
Amy
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.