Profile picture for ilusi

I'm a first time home-buyer and I need to know a property value.

I'm a first time home-buyer. My agent told me to ask my lender for the property I'm interested in for its value. My lender told me to ask my agent for a CMA to determine the property value. My agent also told me that if a deal is made on the property with a price over the appraised value, I wouldn't get the full amount of the loan that includes the excess amount. If I cancel by then, I would be responsible for the appraisal fee and other fees I don't remember what. My lender told me if the agreed price is over the appraised value, I would have to re-negotiate for a new price. The seller may walk away.

So, who has the information of a property value? Is CMA adequate to predict a property's value? Can I not pay for any fees if I or the seller cancel a deal?
  • December 30 2008 - Alhambra
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Answers (7)

Best Answer

I hate to say it but your agent needs to do their job.  I always run a CMA on a property that my buyer is going to write and offer on.  Because I feel it is my job to guide my buyer thru the process with good information.  Good Information = Good decisions.
  • December 30 2008
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Agreed on all counts, your REALTOR should do a CMAs for you, however, before we jump on our fellow agent, perhaps the truth is in there, you just need to understand how it all comes together. I am a wee short on time here, being thanksgiving and all, however, your or an agent does a CMA,
which is in fact done to the best of their ability, that gives you both a pretty
good snap shot of what the prices are for "like homes", again this is all
based on the fact your agent knows how to do a CMA. Now, if you are
dealing with a Short Sale or Lender Owned, they, the bank is going to do
a BPO/appraisal, maybe even a few of them. That number is going to be
closer to the sellers (banks) selling price. Which in a perfect world will be
close to what your agent had. Also, depending on the loan, you may have to up front or at closing pay for the appraisal and if the numbers don't match the agents, you and the seller will have to try and find middle ground, in order to move the transaction forward. I hope this helps, I on to
the apple pie. As an end note, there are really so many different ways a
short sale or lender owned home purchase can go, that having a skilled
agent can and more often than not, make all the difference in the world.
Have a BEAUTIFUL night.  -Shawn 
  • November 26 2009
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Profile picture for The LaPeer Team
That's crazy that an agent is telling you to ask your lender for value. Of course, after you have a contract (price backed with a cma from your agent), your lender will order an appraisal to determine its value for the loan, but in order for you to know what to offer, the agent needs to do his/her job or you need to terminate your relationship with him/her and find one who can give you the service you need/deserve. 
  • November 26 2009
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before you pay for an appraisal get a property profile and a cma both are free that way you have a strong picture of the value before you move forward
  • November 26 2009
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Profile picture for sunnyview
Tell your agent that you are going to use with someone else as an agent. That should get them off their butt. They own you a CMA. It is a basic service that they should be able to provide. If they won't provide it, call the head broker in the office and tell them that without one, you are taking your business elsewhere. Do not compromise on this, you need a CMA. There are too many professional agents out there for you to stick with a loser. Stand your ground.
  • December 31 2008
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Profile picture for CubsfaninWA
As a first time home-buyer, I understand what you are going through.  I had a REA that did absolutly nothing for me but pushed short sales on me and then tell me there was no way I would ever close on them.  She kept trying to raise the value of the house because otherwise I wouldn't get a house.  I felt bad but I had to replace her because I didn't think she had my best interest in mind when she was dealing with me.  My suggestion is to replace your REA, you might, MIGHT, lose the property you are looking at but you may save yourself money and find an REA that will actual help you out.

My two uneducated cents
  • December 31 2008
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I agree, your agent needs to do their job. A CMA would give you an idea of what the house is worth.
  • December 30 2008
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