If that is the case why won't the bank approve their loan? The loan is 7k less than the ridiculous appraised value.

The realtor did not fail. She's been doing this for 23 years. She sold my last house and is not one of those agents who will tell you your house is worth more just to get a listing. She's very professional. If she was a moron, then that would make the buyers agent a moron too for writing the offer that I accepted right? Let's see, the seller, sellers agent, buyer and buyers agent all agree on the value. The appraiser pulls a number out of his ass using a comp for a house that is nowhere like mine and he's right? Sorry I don't buy it.

There have been NO SALES in the past year because NO ONE PUT THEIR HOME UP FOR SALE. I call that a stable, desireable neighborhood. My offer came pretty quick given the market situation.

 

I wonder if the your agent had given you the same price as the banks appraiser would you have had it listed?

 

^ Well, Carmen's house is in a beautiful upscale neighborhood, so I have a hard time believing peeps don't want to live there. There is no question about the value of the houses. I think he's suffering from this problem, as you stated:

"Occasionally there is a neighborhood that simply has not had any sales for an extended period of time simply because no one has had to move in the past year and then you have an issue because you can't prove up value. Many times an appraiser knows there is value, but he simply can't prove that value."

 

I've dealt with drive-by comps sucking appraisers before, but fortunately that has not hurt me in the past. I do worry about it now though. None of the 8 of us who live directly on the lake have sold in 11 years. Several of us have made huge interior upgrades and finishing out our basements. The majority has not done that. Nobody has ever had a real appraisal - only drive by - for property taxes, and we pay all about the same regardless of upgrades. Plus, we're underassessed for property taxes based on realtor appraisals, but nobody wants to push that issue. Based on seat-of-the-pants property values, the only comps in the 27 unit condoplex have been on units thought to be worth 200k less. I/we could be headed for big surprises down the road.
When my son bought his house the appraisal was 75 k above the actual sales price, and the mortgage company picked that one. You figure. Most appraisers use more art than science and come with figures from their living room couches, or worse they are aligned with banks and/or realtors.

 

That is the best strategy, if you can afford it. The market will rebound, but it might take at least a few years. Talk to people in the San Jose/south bay area. This eesm to happen on a regular basis to them, and eventually it does come back. It's a matter of time, and if you can financially wait it out.

 

I'll throw out a flyer. I hate impasses. Drop your price the 7k and offer one year free rent to buy at new agreed price. It gives them a year to square away their financing and perhaps fall in love with the house. You end up with a renter you might be happy with having, and also someone who might not want to move again and gets used to the house and neighborhood. Do you have a mortgage there?

 

No. A variety of other reasons but I can't tell you what they all were.

 

I live in the San Francisco Bay Area, and as far as I can tell, there is no slowing of house sales in the South Bay Area at all. Anything that goes up for sale (in our neighborhood at least) is sold within a week with offers that often exceed the asking price. Often people buy the older house and promptly tear it down and put up a monster home in its place. I have no idea where these people get their money from, but there is a lot of it flowing around the Bay Area.

 

[QUOTE=WhiteS2k,May 27 2008, 02:50 PM] Often people buy the older house and promptly tear it down and put up a monster home in its place.

 

Carm,

Our new Cape house appraised right at the contract price. i looked at the comps the appraiser used and thought they were BS. I noticed the appraiser also did a square footage analysis and value of lot analysis as a second method, which turned out about the same. I really thought I paid a fair price, but now, after looking at the market, I wonder if I should have held off.

I think I am second guessing maily becuase I am trying to sell my old Cape house, and after 5 or 6 weeks - no offers at all! We have listed the house for very close to the town appraised tax value, which is historically 10 to 15 percent lower than market around here. This house has water views and is directly across the street from a community right of way that gives you salt water/ocean access for boating, claming and fishing. If need be, we will rent the old house to weekly summer renters while we continue to list it for sale. But I really thought we would have had an offer by now.