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Appraisers are making even good deals tougher to close.....

A recent article in the Miami Herald said what we all know, appraisals are generally coming in too low.... That means when you go for a mortgage you may not get what you need. Its not the sellers fought either. Here is a portion of the article.
By KENNETH R. HARNEY
  • September 12 2012 - Miami
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Answers (5)

Profile picture for ShaylaTwit
We are experiencing the same here in Sarasota.  Cash is King! :)
  • September 12 2012
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I'm always a little curious about why buyers do not get an appraisal done before writing an offer on a property they REALLY want. Wouldn't those few hundred dollars translate to lot more in time (and money) savings?

Raheel Shahzad, Attorney, CPA, Real Estate Agent
Chicago, IL
  • September 12 2012
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appraisals are generally coming in too low. 
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as sellers again try to sell their homes for too much. After housing bubbles of 1899, 1905, 1912, 1925, 1940, 1950, 1955, 1978, 1989 and 2005 you'd think people would remember.Homes appraising at true values, not one up in a bidding frenzy (mob mentailiy) will help keep more people from being upside down again.

If they want to overpay for a a house they can pay cash or make a larger down payment and accept a loan at a percentage of the true value.
  • September 12 2012
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Profile picture for CarlsbadHomes
I worked with an appraiser in the 80's and the appraisals are based on comparable homes within 1/2 mile that have sold within the last 6 months. As supporting information appraisers also include pending sales in the same area to justify values that are higher than recent sales.
The biggest appraisal problems are appraisers coming from out of the area to do an appraisal. This is caused by appraisal management companies that banks must use to keep the lender and the appraiser at an arms length transaction.
Appraisers will accept quality comparables supplied by real estate agents. You cangive them the comps when you meet them at the home for the appraisal. 
If there are no comps - there are no comps and you cannot just claim it is a area wide trend for the prices to increase x% each month.
  • September 12 2012
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Profile picture for SteadyState
The appraisers are looking at the complete micro and macro economy in addition to the current deflationary trends for all asset classes. This should not be confused with the last 4 or 5 buyers overpaying for property based on emotional and not economic analysis.
  • September 13 2012
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