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FHA Appraisals - Anyone getting these to come in even close to the offered price?

By
Real Estate Broker/Owner with David Wain Realty, LLC

FHA Appraisals

I have gone through a few VA and FHA loans and the appraisals have been no big deal. FHA appraisals lately have become quite the challenge. I know my market inside out, know the boundaries where prices are affected and have a good sense of what is over-priced and under-priced. I recently received a contract that was 100% FHA. I know the buyers and they are solid as a rock. High net worth, solid employment, fantastic credit scores. I know the home and what the value is. Even beyond that, there were multiple offers for full price within a very short time. That is a good indicator that the home was priced right (maybe even too low).

The problem is I got word that the home did not appraise. I was shocked to say the least. I did my research and can easily justify the value of the home. I still have not seen the appraisal yet but should get it on Monday. I have heard from a few title companies that FHA loans are failing because of appraisals. They mention that it is becoming very common, much more than ever before.

Has anyone else noticed a change in FHA loans and the appraisal problem or am I just caught up in something very local?

Comments and any info is greatly appreciated...

 

Larry Costa
Century 21 Classic Gold, Carver MA - Carver, MA
Realtor, MA Real Estate

been fortunate on Value lately, it's the issues the FHA appraiser's are finding......

Feb 05, 2011 10:04 AM
Bryan Cerny
Rose & Womble Realty - Chesapeake, VA

It can happen with FHA appraisals.  Unfortunately, it can be something we run into now and again.  But perhaps it will work out yet.

Feb 05, 2011 10:07 AM
Andres Munar
Keystone Alliance Mortgage - State College, PA
Experience The Difference

Values have all been coming in at exactly the purchase price and not a dollar more. I am having trouble with FHA refi's and my AMC company allows me to dispute them by supplying comps. Have  you tried to supply comps supporting the value?

Feb 05, 2011 10:07 AM
Diane Kawell
Windermere Real Estate / West Campus / Federal Way WA - Federal Way, WA

Ok out here in Tacoma WA - right on the money with my last two. Got another one next week, so I am hopeful. One property was a normal equity seller a little on the high side and it worked! The other 2 are bank sellers and first time buyers .. good luck!  I think you will be ok soon :-)

Feb 05, 2011 10:11 AM
Brian Geraghty
David Wain Realty, LLC - Fort Lauderdale, FL
Short Sale Expert, 954-790-2602

Andres,

In anticipation, I have created a list of comps to supply to the appraiser on Monday. I am definitely going to dispute the appraisal. Thanks for the comment.

Larry,

Glad yours are coming in OK.

Bryan,

Thanks for the words of encouragement.

 

Brian Geraghty
David Wain Realty, LLC

Feb 05, 2011 10:15 AM
Brian Geraghty
David Wain Realty, LLC - Fort Lauderdale, FL
Short Sale Expert, 954-790-2602

Diane,

Thanks to you also! Maybe I'm getting ahead of myself! We'll see.

Brian

Feb 05, 2011 10:23 AM
Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

One issue I have been having is the appraisers are not from anywhere near the subject parcel so I don't see how they can possibly know the market. Seems like the ones that are appraised locally are fine but the long range appraisals seem to come in low.

Feb 05, 2011 10:56 AM
Brian Geraghty
David Wain Realty, LLC - Fort Lauderdale, FL
Short Sale Expert, 954-790-2602

Randy,

That happens frequently here in Fort Lauderdale. We consistently get appraisers from the Miami area. We are only 30 miles apart but the market there is totally different then here. Agents dread hearing the appraiser is not from Broward County because the already know it's going to be wrong. I suspect the lender just looks at South Florida as one market and goes from there.

Brian

Feb 06, 2011 01:51 AM