I had one done for a refinace loan and it was way under value...The housing market has slowed down but not stopped where my home is located....I really have problem with appraisers. All my friends appraises where the exact dollar amount as there loan when they purchased their home so I really question them on the value ....
2007-10-24 03:40:50 · 13 answers · asked by bingofox 2 in Business & Finance ➔ Renting & Real Estate
If you're paying them, you get to choose them - so long as you don't choose an appraiser who is somehow a related party to the transaction.
And your friends houses appraising for the exact dollar amount needed to justify the loan as submitted is nothing unusual. Sometimes it's a number "manufactured" to make clients happy - stay away from those appraisers. Sometimes it's an appraiser who could get more value, but sees no reason why they should work harder than they have to, or assume more liability
2007-10-24 04:03:00 · answer #1 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
i,m and appraiser for over 9 years, and I have seen a ton of crappy reports, that are just way out there, there was a comment that stated that lenders are at risk and that is the whole truth, as mush as much as home owners think there home is always worth more, we have to have supportable data that supports any value we come up with, and if you want to really blame anybody blame the government, cause the changes in 2011 the HVCC restrictions, only lenders pick the appraiser, however now most appraisers have to work for AMC (appraisal management company's) , which lowers the amount the appraiser get per report, so you get appraiser who do shitty reports. cause now there fee are cut in half. I totally understand home owners complaints but before you blame the appraiser you must understand the risk the appraiser takes, and many lenders now are blanket suing appraiser for the housing downfall to recovers what ever they can, So i hate to say it but appraisers now are very cautious on there value, because of all the changes in the industry,
2014-02-10 13:15:43 · answer #2 · answered by gizmoo 2 · 0⤊ 0⤋
I am amazed at how some one can afford a house payment like that IE have a good income and ask such a stupid question. You are upside down you can not move with out losing your shirt yea you have have to pay some one to move or buy your home. Since the bank has screwed you i would pay the least amount possible and save and hide the rest, you will need that money since it will cost you big time to walk away after you go bankrupt, do not worry that adjustable will kick in big time and soon. Also i would buy a fire proof safe and hope you have bad wiring and a fire burns down every thing, the funny thing there is your insurance will still only cover the appraised Value and you still have to pay the mortgage off. Best of luck you will need it.
2016-05-25 11:21:47 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Appraisals for refinances are often different than for purchases. We had a similar situation. Unfortunately we were not allowed to choose our appraiser either. If you have the choice NOT to refinance at this time, perhaps you shouldn't. In many places in the country people in the industry are trigger shy. Perhaps that might get better in a few years?
2007-10-24 03:59:13 · answer #4 · answered by Christiane 3 · 0⤊ 0⤋
I don’t think you can choose your appraiser due to conflict of interest concerns, but you might be confused about the appraiser’s function. Their job is to come out and make sure the house is worth as much as the amount you’re paying; that’s not to say it couldn’t be worth more.
I just bought a house that’s worth about $160K. My appraisal says my house is worth $140K, which is what I paid. If I paid $150K, the appraisal would be for $150K. That’s why your friends appraisals are matching to the prices they paid.
The appraiser is supposed to come in and make sure the collateral (the house) is worth as much as your loan. Should you default on your loan or chose to sell, the owner of your mortgage wants to be sure they can recoup what they are owed. If you’re trying to pay $225K for a house only worth $200K, the appraiser is doing you and the loan company a big financial favor by telling you so. Would you rather overpay, and end up upside down in your house?
2007-10-24 03:53:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Generally not. Most lenders prefer to let a vendor randomly select the appraiser. This gives them the most unbiased opinion of the value.
Appraisers tend to stop at the value expected, rather than go beyond that. If the purchase price or cst's estimated value is $100,000, they stop as soon as they reach $100,000.
2007-10-24 03:46:43 · answer #6 · answered by Debdeb 7 · 0⤊ 0⤋
Typically the bank or mortgage broker chooses the appraiser since they are the one's risking money to do the refinance. Some lenders do have a list of approved appraisers though. Check with your broker to see if your appraiser is on their list and you may be able to use them.
2007-10-24 03:45:08 · answer #7 · answered by Anonymous · 1⤊ 1⤋
Refi companies typically have a list of appraisers they will accept appraisals from.
2007-10-24 03:45:16 · answer #8 · answered by Anonymous · 0⤊ 0⤋
The bank is the one that relies on the data and they use the appraiser of their choice. It is done with the computer, there should not be a wide variance.
2007-10-24 03:44:00 · answer #9 · answered by Landlord 7 · 3⤊ 1⤋
no, the bank will choose the appraiser or have a list of approved vendors they select from.
2007-10-24 05:21:22 · answer #10 · answered by Carly Jacks 6 · 0⤊ 0⤋