Need some advice on appraisal

[kanabel]

I have got a bit surprising results, today, of the bank appraisal for the property I intend to purchase. Agreed price, which seemed pretty good to me was 90k, but bank appraised it on 70k. So far I have never had appraisal being so much off, if not even higher. So, my question is by your experiences what do you generally think about bank appraisals, as how precise they are, how honest, do they really reflect exact price according to current market conditions?
Thanks a lot to everybody!
Dejan

 

[brentmatheson]

This happened to me on a property earlier this year. Luckily I was able to get them to raise it after a few other comparable sales went through.

I`ve seen a wide range in appraisal values. It`s the appraisers approximation of the value of the house based on its condition and recent comparable sales.

If you`re not happy you might consider paying for a second appraisal (by a bank certified appraiser of course!).

Brent

 

[DennisEpp]

QUOTE (kanabel @ Dec 20 2007, 07:22 PM) I have got a bit surprising results, today, of the bank appraisal for the property I intend to purchase. Agreed price, which seemed pretty good to me was 90k, but bank appraised it on 70k. So far I have never had appraisal being so much off, if not even higher. So, my question is by your experiences what do you generally think about bank appraisals, as how precise they are, how honest, do they really reflect exact price according to current market conditions?
Thanks a lot to everybody!
Dejan

 

[DennisEpp]

Did u review the appraisal, they found or saw something negative in the property you missed while viewing? If not then absolutely if u feel the property is at or above the value it was appraised at, request another appraisal (you will have to have a lender approved appraiser). Appraisers do not all use the same comparables necessarily, and the only way to challenge is to have it re appraised. If u do not wish to do this request a extension on financing and aproach another lender. This only If u have done your due diligence in area values.

Dennis Epp

 

[kanabel]

Thank you both, I appreciate.
Dejan

 

[invst4profit]

Not a direct response to your question but I am curious.
Would you not view this appraisal as an opportunity to go back to the seller and attempt to renegotiate the deal. Assuming you have the "conditional on financing" clause in your offer. Or you could ask the seller to pay for there own apprasial, if they are motivated to sell, and assuming it comes in low again you have further leverage to renegotiate.
If both are low the price is too high.

 

[kanabel]

QUOTE (invst4profit @ Dec 21 2007, 08:44 AM) Not a direct response to your question but I am curious.
Would you not view this appraisal as an opportunity to go back to the seller and attempt to renegotiate the deal. Assuming you have the "conditional on financing" clause in your offer. Or you could ask the seller to pay for there own apprasial, if they are motivated to sell, and assuming it comes in low again you have further leverage to renegotiate.
If both are low the price is too high.

Absolutely. That`s what I am trying to do now.
Thanks