Since we've been talking a bit about the economy lately, get a load of this crap. I listed my house in Ohio for sale on January 4th. I got an offer a couple weeks ago and accepted the offer. The buyers are strong buyers financially and there was no house sale contingency as part of their offer. The idiot appraiser and bank have stolen a sale from me. Here's how. The buyer and I came to an agreement on price. The buyer is putting approx. 20% down and financing the rest. As part of their loan application they need to get the house appraised. As I understand it, the largest facter in an appraisal are the comps in the area. Our development is in demand and as a result has been very stable (i.e. no listings). As such, there are no comps in the past year except for one. That house has no basement. Mine has a basement, the basement is a walkout and the basement is newly finished with a pool table room, home theatre and 1/2 bath. Theirs has no hardwood. Mine has hardwood on the entire first floor save the master suite. Theirs has no granite. Mine has granite in the kitchen and master bath. The idiot appraiser has appraised mine at the EXACT same value as the slab home!!!! As a result, the appraisal is 55k less than what the buyer offered and I accepted. So here we have a willing seller and a willing buyer who have come to an agreement on price (in the old days this is what establshed market value).

My agent asked if the lender would be willing to go further back in time for a reasonable comp. (they only allow 1 year back). There is a place that sold for 10k more than our agreed upon sale price 2 years ago. The morons at the bank said "no". As a result, their loan will not be approved and my sale is kaput. So, in essence, I am paying the price for these idiots making bad loans the past several years. Apparently these jackasses think the way to solve this problem is to force people to sell their homes for 55k less than someone is willing (and able) to pay for it.

I understand there has been a market correction in home values. That's why our agreed upon price was 20k less than my listing price (I had also previously lowered the asking price 5k). I just can't believe this.

 

Sorry to hear that,but not surprised at all. I have been talking about this in my area for a few years now. It does not matter what your house is or whats in it its all about comps. Sad but true in your case im sure infuriating!

 

I forgot to mention I have an employee who built a house a little while ago, wanted to refinance to capture a lower rate, and the appraisal came back significantly less than he paid for the place. Not only is he not getting his refi, but the bank now wants to charge him PMI because with the new appraisal he fell below the 20% equity threshhold.

 

Pretty sad. Ask the bank to nominate someone else to do another appraisal.

 

Now tell me can this be done after the fact?

 

We can do that except my agent feels as soon as the buyers hear the appraisal (thye were supposed to find out tonight) they will get cold feet thinking they are overpaying. The appraiser and bank killed the deal.

 

Point out the basement and the hardwood floors to the buyers. They should be able to tell the difference even if the appraiser can't.

If they are still interested, see if they'll find another appraiser, or another bank. I've never heard of an appraiser failing to account for differences (like a basement???).

 

I guess the days of the appraisals coming in at the contract price are long over. That used to be SOP. But I suppose with all the foreclosures the banks are running scared.

 

His logic is that the house on the slab would be appraised even lower today.

 

So is there any compromise in this sitch, or are your buyers gone?