Where do Banks Find their Appraisers for Short Sales?
It has been a while since we had a short sale run amok. We have been quite fortunate to close all of our short sales when they do come on the market.
Sometimes when the road has been too smooth you can expect some turbulence.
We have a short sale where the appraiser turned in a "Fair Market Value" of at least $100,000 over the buyers' offer on our listing.
Even our seller was wondering what planet this appraisal just dropped in from.
We are contesting the appraisal of course. The escalation department stated that the appraiser actually used comparative properties only .4 miles from the subject property.
But he is comparing apples to oranges.
The homes that the appraiser used as comps were in a subdivision that is an upscale over 55+ community with an HOA fee of $450 per month. For those kind of dues, you can expect that the amenities were top notch. In fact, the clubhouse even has marble floors.
On the other hand the subdivision that our listing is in has HOA fees of only $150 per month. It does not take a math genius to figure out that you are not going to be getting the same level of amenities.
The subdivision the appraiser used for comps has an average sales price of at least $100,000 over what the average price sold is in the short sale's neighborhood.
Also, you should see the kitchen that the appraiser took for his comps and compare it to our listing's kitchen. The kitchen in our listing is old, original and still even has Formica counter-tops.
The kitchen in the higher end home the appraiser used was totally new and modern with granite and a huge sub zero stainless steal refrigerator.
It was like a night and day difference.
This is causing all kinds of extra work now to fight the appraisal. There is no way this home is worth $100,000 more than the other homes on the street. The buyer is making a very fair and good offer.
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