All Forum Posts by: Patrick Britton

Hang on here, you were already "not feeling comfortable" about the deal and when an independent, unbiased, third-party CONFIRMS that it's worth less than contract price, you blame that person?

I think you should blame your realtor. NEVER, EVER waive an appraisal contingency in a market like today.

0 Votes

@Elizabeth Rose ok i'd like to dissect this first paragraph and outline just a few things:

"I have been working with a credit union to get a HELOC to allow me to tap my equity to buy additional real estate. As a final step, they requested an in-person appraisal to confirm the value of my current residence." The appraiser ended up valuing my property at a good $50K LESS than I know it's worth given other comps in the area." OH, LESS THAN WHAT 'YOU' KNOW IT'S WORTH? WELL THEN, WHY DID THE PROFESSIONAL EXPERT IN PROPERTY VALUATION ARRIVE AT A DIFFERENT ANSWER? MAYBE YOU'RE THE ONE WHO'S WRONG?

I pushed back on this and requested a re-appraisal - I submitted comps showing what other less desirable condos in my area have recently sold for. DID YOU BRACKET THE SUBJECT AS PER USPAP REQUIREMENTS? HOW DID YOU RECONCILE THE COMPS? IF YOU DONT KNOW WHAT ANY OF THAT MEANS YOU HAVE NO RIGHT TO COMPLAIN ABOUT THE APPRAISAL PROCESS OR THE FINAL OPINION OF VALUE.

But the appraiser is sticking to his estimate (of course he's not going to admit he made a mistake). RIGHT, BECAUSE THERE'S NO WAY YOU MADE THE MISTAKE. HE'S WRONG. YOU'RE ALWAYS RIGHT.

unbelievable.

0 Votes

good lord. the question was about appraisers and not a single appraiser has posted a reply. lots of opinions from real estate agents though!

0 Votes

Los Angeles County, California

"The appraiser came in low." No. You and your mensa-member real estate agent came in HIGH.

The appraiser doesn't work for you. Their client is the lender. They want to know how much the bank will be able to sell the property when you start defaulting on your mortgage payment that you can't afford because your loan officer fudged numbers while fantasizing about the $20,000 commission on a 1 mil loan. Or maybe it's the real estate agent working for his or her 3% on 1.2 million dollars that might be biased? $30k+ in commission there!

No wait, it's the guy who was paid $500 by a third party to provide an unbiased opinion of value, he's wrong. He doesn't know what he's doing.

4 Votes

if it's zoned for 4 units, the appraiser will not make it 7 units. Period. Doing so would result in that appraiser losing their license and source of income.

0 Votes

WOW! look at that! @Brad Waterstraat asked a question for appraisers and a realtor answered! No offence @John Warren but your answer might be incorrect.

"Can I use baseboard heaters, or do I need to run a duct from the furnace into the back porch?" That's an incredibly smart and thoughtful question. The correct answer (according to a certified residential appraiser of +10 years) is in fact: it needs to be the same "source" as the rest of the house. My interpretation is that you'd need ducts in this case. Admittedly, if the area is heated and there's nothing else funky with the room you might be able to get away with baseboard or wall units, but IMHO i read the rule to mean "same source = identical source, not similar."

@Brad Waterstraat i'd reach out to the appraiser and ask the same questions.

good luck!

0 Votes

Chicago, Illinois

have a quick look to see how nearly impossible it is to become a real estate appraiser first. Is it worth it? Yes, but there's no guarantee you're ever going to become an appraiser. I looked for a trainer for nearly two years before I stumbled across someone who was great. I got amazingly lucky. Most people don't.

Let me put it to you this way, in order to become a certified residential appraiser you're looking at a total time commitment of no less than four years. and I'm assuming you're going full time. If you're not, forget about it.

0 Votes

Honolulu, Hawaii

Quote from @James Hamling:

Quote from @Dan H.:

Quote from @James Hamling:

@Joe S. simple side of this is do you want the person in control of deciding your funding $'s to be allied or an advisory? The appraiser gave you a golden opportunity and they spit in there face. That's what happened, weather you understand that or not.

The appraiser asked you for intent so they can find HIGHEST and best use, in YOUR favor. Otherwise, with 0 info, guess what, they are simply going to pick what that highest and best use is and it might not be to what you were thinking. Also, if it is for say rental use vs market sale, those are different means of appraisal, different slants to it all.

On the purchase side, your paranoid. Guess what happens if you buy it for way less then fair market pricing, they adjust it's purchase price up. Now, what motive does the appraiser have to give a squat for the guy who was a dink?

And on the reno side of things, that's just solid gold opportunity, that's an appraiser saying "help me to find every way possible to justify a highest appraisal".

I have a funny feeling your next post is going to be "Appraisal came in way low! How do I get them to change it????" and the answers will be "good luck buddy".

Real Estate is all about relations, 100%, I suggest contacting the appraiser back and apologizing saying that were driving at the time etc etc, and don't really know the process, how can you help. And the sale price, your nuts if you think you can hide that, the appraiser can simply call recorders office and get all that info direct.

I question how many BRRRR you have done. The refinance is typically conservative. The value of the property should not have any relationship to what was paid for the property. The value should already be based on highest and best use as that is what establishes the value of the property; the property value should not be on lowest and worst use.

It seems like I need to appeal a very large percentage of my BRRRR refinances. I had an appraiser disappear once as he did two appraisals that I appealed both. The first I got an $80k correction. He disappeared mid 2nd appeal. Do you know your options at that point? You can start over or accept the poor appraisal.

If the appraiser knows the value paid, even if they do not intend to, it would be hard to not take into account the price paid.

I think any appraiser that resents not knowing value paid for a property is too lazy to do their job and determine the value as it currently exists. I also believe the OP likely did the best action to obtain value based on the current property.

You obviously don't know how appraisal works, the rules and regulations unto it, the DECORUM for such. Myself, I actually employ an appraiser on team to be at disposal to make reviews, consult and lend insight for all our clients. And before decide to make baseless claims as to her qualifications, maybe do with a little research as to an MAI designation first.

For those who don't know, just because you got a great deal on the purchase is does NOT mean the sale appraisal will get nerf'd down, that's only paranoia in your own mind of such. What it DOES do is it could greatly RAISE your sale price appraisal, because it could give them the ability to change it's rating scale because if you did certain works to it, taking it from ___ too ___, which that acquisition helps them to PROVE, than the appraiser can use those IMPROVED metrics. If in your paranoia want to keep the appraiser blind, guess what, they err on the side of caution, that means LOWER appraisal.

This isn't rocket science, it's kind of common sense to HELP the person who is in control of dictating what your property is worth, vs going to lengths of being a pain in there azz. If don't believe me just feel free to go to any restaurant tonight and be a total dink to the waitress, see what happens, let us know how much "better" your food came out.

finally! someone who has an understanding of the topic at hand!! thank you James!

1 Vote

"We would not feel comfortable sharing the exact amount we payed for the property." the appraiser can find out how much you paid any number of different, PUBLIC ways.

Instead of being an uncooperative a55, you could be helpful…

0 Votes

All Forum Posts by: Patrick Britton

Patrick Britton has started 248 posts and replied 1405 times.

Post: Remeasuring added square footage after rehab?

Post: My appraiser gave details to the seller

Post: HELP - the appraisal company gave me a super low-ball appraisal

Post: Are Houses Actually Appraising for These Prices?

Post: Help! Appraisal came in too low

Post: Refinancing/appraisal for a 7 unit zoned as a 4 unit.

Post: Question for all Appraisers

Post: Is becoming a appraiser worth it?

Post: Appraiser ask what we purchase property for.

Post: Appraiser ask what we purchase property for.