Profile picture for user9933018

If there are no comparibles to a home when apprised even outside the area what happens?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 14 2012 - Breaux Bridge
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (14)

They either have to go back and redo the appraisal for what ever reason it was not accepted by the underwriters (if that's the case) or worse case scenario the deal can be done due to lack of comps.  The question was pretty broad and every situation is different so the  correct answer given would need more information from you.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 16 2012
There are always comparables, but for LENDING purposes (I dont know anything about USDA), sometimes lenders have restrictions on the comparables.

That valuation would be considered complex, and would cost more than a typical appraisal. That said, a local appraiser should be able to handle the job.

Although the lender will assign the appraiser, you might want to ask for help from local appraisers in your area. Here is a link to help you find a local appraiser, who will probably give you free advice....Good luck.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012
John - if you have a sense that your property is unique and not easily compared, attempt first to interview the appraiser about his/her knowledge of the area and experience with similar properties. In some areas, if the appraiser does not seem knowledgable, you can request another one PRIOR to the appraisal visit. You  might also try to round up information on properties that you think convey a similar value. This might require either searching county records or, if you're not a licensed real estate agent, then working with one to collect the data. (This route might require a fee if you're not using the agent for the transaction). But, regardless, the particular reason for the sale will have an impact on evaluation, so it's important to ahve clarity of outcome before you begin.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012

Let me begin by saying that it is very difficult for us to understand how to respond to questions in this forum because we do not know everything about your transaction.  We are not party to your agreement. There is a reason that we are in this business and need to get paid for our services: we know how to read contracts and save our clients more than they attempt to save by not using a professional.  The first one that I recommend that you contact is a local real estate attorney who can review your documents and give you the best advice.

 

Having said that, the only thing that I can suggest if you're appraiser is telling you that there are no comparables is to tell the lender that you think that the appraiser is "unqualified" to appraise the property that you are interested in.  He/she will need to demonstrate that he/she is qualified to appraise your specific target.  The lender should go back to the appraisal pool and ask for another professional. Your mortgage broker will need to support you in this so if she doesn't there is something else going on.  She should be able to successfully make this request.

 

Specific loan programs are tied to specific property types and conditions.  This is why every pre-qualification letter will describe that it all depends on more information from the buyer and the property address.  Just because a program is available doesn't mean that it is available for every situation. I see that hpvanc made the same suggestion about posting in the mortgage section to appeal to lenders. It sounds as though it is something more than the appraisal and the lenders may be able to draw that out.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012
Profile picture for user9933018
yes 1bed 1bath 1726 sq.ft living area on 2.54 acres!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012
Profile picture for hpvanc
I suggest posting the question under the Mortgage section of the forum, you may get responses from lenders that are more likely to be aware of what loans are available under the circumstances. 

The issue as I understand it is, it is a 1 bedroom and there are absolutely no 1 bedroom comps?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012
Profile picture for user9933018
No you did not get it! My son is the buyer!!!!!!!!!
 OK I am wore out trying to find someone that will finance a  house with out a balloon payment and higher interest rate then he should get with very good credit! Because they have no comparable to the house even outside the area!!!!!!! There is a USDA program that it would qualify for 125% or maybe it is 110% but I can't find anyone to write it. Not that he needs 125% it is to be able to get it up to the 2 bed instead of 1 bed then they could go off the 2 bedroom comps that I am told are out there !!!!!!!!!!!!!!!!
anyone know anyone that lends money on unique properties PLEASE let me know
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012

An appraiser will work with the best comparables they can find, best case very near the subject property and moving concentrically out as far as they need to go to find them.  They can apply adjustments to close comps to make a value assessment.

A property always has comps - one way or another.

Recently I disputed an under appraisal and won!!  Doesn't happen often, and my buyer was prepared to move forward with more cash.  But we disputed and won the case, allowing the buyer to borrow what they planned to borrow.

Good luck to you!

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012
So, reading between the lines, I understand that you are a seller and that a buyer is telling you that they are not getting the loan that they want for (what-ever) the reason they are giving.

Nice negotiation strategy on the part of the buyer; they want you to lower your price.

Do you want to lower your price?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012
Profile picture for user9933018
I don't have that information yet,but I did request it.
 The problem is' it could be perched with (maybe doable just not too happy on this idea)10%down 3 year @ (6.25% interest)  balloon payment at end of 3 years or 20%down (that I don't think he can do) and a 15 year fixed rate @ 5.5 The interest is much higher then he qualified for with a 30 year fixed.
LOL or CASH sale (he did not win the lottery)
 He qualified for USDA rural development loan I even spoke with them and he could get a loan for 125% to be able to add stairs and closet upstairs to make it a 2 bed 1 bath but can't find anyone willing to lend without 3 comparable.   Any lender will want to use their appraiser and I am told that they would have to have 3 comps
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012
Who appraised it?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012
Profile picture for user9933018
who will finance a home that has no comparable: It is a 1 bed 1 bath 1726sq.ft. on 2.5 acres ( access to upstairs is not included if it were it would be 2053sq.ft)   it apprised but has no comparable so the mortgage comp offered a 3 year balloon    
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 15 2012
Appraising is an art that is supported by a lot of training and experience, if you are talking about a true appraisal. An appraiser makes the adjustments to existing comparables that Tim has described using those tools.
The other 2 methods of appraisal are what the home would cost to replace and what it cost to build.  Both of these methods also require adjustments for age and depreciation.
Using all of these tools an appraiser should be able to close within 5% of the homes APPRAISED value (not market value).  I'm not certain that an appraiser will ever say that there are NO comps and if you want some examples; think of appraising a fire station, a bridge structure, a high rise building or a subway.  Insurance companies appraise all of these.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 14 2012
Comps do not have to be 100% the same. A similar home with 3 beds can be compared to a 5 bedroom home by making adjustments. When doing an appraisal using comps is one method, they will also do a computation as to what it will cost to build a similar house, so they can pretty much always come up with a value one way or the other.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 14 2012
 
Related Questions
If there are no comparibles to a home when apprised even outside the area what happens?
Profile picture for Tammy  Deviley
Latest answer by Tammy Deviley
August 16 2012 | 14 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 42 Bridgetowne Ln, Breaux Bridge, LA Home For Sale
    42 Bridgetowne Ln, Breaux Bridge, LA 70517

     For Sale: $21,000

    • Beds: 0
    • Sqft: --
    • Baths: --
    • Lot: --
  2. 1030 Hebert Ln, Saint Martinville, LA Home For Sale
    1030 Hebert Ln, Saint Martinville, LA 70582

     For Sale: $319,900

    • Beds: 3
    • Sqft: 2094
    • Baths: 3.0
    • Lot: --
  3. 1063 Bonnie Ln, Breaux Bridge, LA Home For Sale
    1063 Bonnie Ln, Breaux Bridge, LA 70517

     For Sale: $278,900

    • Beds: 3
    • Sqft: 2400
    • Baths: 2.0
    • Lot: --