Profile picture for bsfreeburg

Log home appraisal comps

My wife and I are trying to buy a 2700 sf, log and stick frame built house, on a private lake. The home was built in 2005 and exterior walls that are full width logs, the interior walls, gables, and subfloor are all conventioanl stick frame with a log facade. The bank I was planning to use just informed me they may not be able to make the loan because there are not any comps that are log homes.

Is this a common problem? What are my options? clearly I can try other lenders, but am I wasting my time.

We both have credit scores above 750, are planning to out 20% down on a 30 year fixed loan.
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December 14 2010 - Raleigh
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Answers (16)

Profile picture for user38716349
Jason thanks so much for your anwer.  I am the seller.  The buyers have greart credit a good down payment 100 k on 400k both employed. It's a huge made made lake 500 miles of shore line we have a private dock. we hhave well & septic. The problem was it appraised for the purchase price with 3 traditional comps and the found one log home comp from a year ago but it sold for less was more sq ft and more property. (it was not comparable  mine is made top quality pella windows 28 ft mississippi river rock fireplace etc) the lender said it needed a log home comp and there is none. It is a rural area not much for sale or solds. Thank God the buyers are going to a log home lender and i pray it works. We are losing a lot of money but it is worth it to move closer to my grandkids. These banks are crazy!
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September 13 2012
Unique properties are sometimes harder to find comparables for.  This can scare some banks away but with good credit, good down payment, and verifiable employment, you can likely find another lender to loan the money to you.  I wonder if there is anything else unusual regarding the property.  When you mentioned private lake, I was wondering are there access issues?  Is there power to the property?  Does it have water & sewer or well & septic?  Do you own or lease the land below the home?  These are some other issues that you may want to look into and see if they played into that decision.
Lastly, ask the sellers who financed the home when they purchased it.  That may be the easiest way to get the deal done.  

Best regards,

Jason
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September 12 2012
Profile picture for user38716349
What ever happend with this?  I am in the exact same situation.  I am selling a stick frame log home and underwriting is giving us issue with the ccomps.  it is unique and not another home like it.
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September 11 2012
I know this is a little late, but get an appraiser to assist you.  If you have an aagent they should be able to find out what has sold in the surrounding area.  I hope you were able to purchase the home.  

Jackie
Raleigh, NC
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February 05 2011
This is an older post but I wanted to add....have a professional appraiser come out on a unique property such as this. 

Did you buy it?

Sharon

Raleigh, NC
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January 22 2011
Jeanne Kozak is correct do some research in the area or contact a Realtor in the area and find other similar sales.  If there was a deal done before find that person involved and use the contact they have.  That is the best way to solve you problem.
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December 15 2010
Profile picture for bsfreeburg

The probelm is that at each bank I will have to pay for a new appraisal under the new rules. The consumer does not get to pick an appraiser and these days frequently gets the lowest bidder, who may be an incompetent boob from 90 miles away. (been there, done that)  I undrstand that they can choose to not lend on a style of home or based on location, etc. but once they have taken your application and fee, they should be stuck with the appraisal in the same way the buyer and seller are. If they do not like the appraisal they can not your that appraiser, or tell the third party appraisal selecting company not to use them again, or use a different third party selection company.

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December 15 2010
Well bottomline is any lender can choose to lend on any property - or not lend - for any (legal) reason. Your question had to do with comps of similar homes, not lending on that style of home, but either way they can say what they want do to kill the loan - or not kill it.

Welcome to the world of lending. I see this all of the time for many reasons. If your current lender can not (or will not) do it, move on, as your are purchasing it, not refi-ing it, and time is of the essence. Next time make sure they know its construction qualities.

Since your PAID for the appraisal, you are entitled to a copy. Try to get it and show it to your next appraiser, if you use one.

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December 14 2010
Profile picture for bsfreeburg
I guess I don't understand something. If the bank orders the appraisal, and it under the new rules the appraisal gets assigned to a neutral appraiser through a third party. How can they not accept it? The appraisers job is to appraise the value, if they are not able to appraise the value of the house perhaps they should not be in the business. The consumer (neither the seller or the buyer) can fight an appraisal.......so why does the bank get to not accept an appraisal.? I suppose if they question it they could order a second appraisal? 

Perhaps they should have to refund your loan application fee if they do not accept the appraisal?

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December 14 2010
There are lenders that are more willing to lend on a unique property. You may need to put down more than 20% though. It is more about the risk of lending on a unique property than it is about the risk of the borrower, you appear well qualified. Look for any other log home sales and call the parties involved, they may be your best bet. Good Luck!
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December 14 2010
Vince-getting an appraisal done on the property isn't the issue, finding a lender that will accept the appraisal and property is.
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December 14 2010
As your home has only the log facade, and probably is more typical for the area than Los Angeles, I dont see any reason for the excuse. Ive appraised geodesic domes, all glass homes and homes made out of recycled storage containers with no problems.
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December 14 2010

I just checked our MLS and there were 14 homes that sold in the last 6 months with a log exterior.  If your bank is not willing to do your loan, I would check with the agents who represented the buyers on these homes to get the names and numbers of the lenders they used.

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December 14 2010
Most lenders are going to need an appraisal with at least one other log home sale on it.  Unless they are common in the area log homes are considered "unique" properties the majority of the time and are a lot more difficult to finance. 

Find out who the seller had/has financing through and contact them.
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December 14 2010
There are other ways to appraise a home besides the sales comparison method.  Another bank, another appraiser.  Use a mortgage broker instead of a mortgage banker.
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December 14 2010
Try posting a link to this on the Mortgage section of Zillow or copy the question there.  You should get some immediate responses from lenders.
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December 14 2010
 
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