Rules Smules - This is Craziness with Appraisals

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Real Estate Agent with HomeSmart Real Estate BR030809000 AZ Broker BR030809000
https://activerain.com/droplet/gwk

Rules Smules - This is Craziness with Appraisals

3 appraisals and it's still not right.  Has somebody been smoking something?  This is not acceptable for my buyers. I know there has been a big mistake and nobody wanted to fess up and make it right. Nobody wanted to take responsibility and fix it.  They all kept saying there is nothing we can do.  They succumbed to it's the 'new rules and washed their hands of it.  Rules Smules - this is craziness!

Appraial #1 came in fine but the lender couldn't lend on this condo. Next lender - Appraisal #2 came in $15Kwww.phoenixpropertyshoppe.com lower, had about 200 square feet less than what's been there since 1984 and the worst comps imaginable were used. We jumped up and down and contested it so they sent the same appraiser out to re-do his figures and comps. Sure -you betcha.  Not likely that he'll want much if any egg on his face, is there?  Appraisal #3 came back only $2k higher, didn't use a 3 week old comp of exact same model across the street and refused to change square footage. Can you see the steam coming out of our ears by now?  It gets hot in Phoenix and let me tell you I was pretty hot under the collar.

I politely demanded that there be a 4th appraisal as the 2nd and 3rd were bogus and about as real as ocean front property in Yuma Arizona.  They used an inexperienced appraiser to save money and now were being asked to pay for this one.  Were they happy campers? No.  Did I insist they do the right thing? Yes. Did they do so? Not without a whole lot of messing around with them. Craziness.

My buyers deserved better than this - by a long shot.  They are well qualified buyers relocating here to the Phoenix area and referred to me by Cindy Marchant. I was going to do everything in my power to make this work for them.  They knew they were getting a fantastic deal at the original price - we all did.  There is no way I could find another property like this for any dollar amount remotely close to that price in Moon Valley.

The lender ordered Appraisal #4 and put a rush on this one! I'm thankful this lender valued our business.
#4 came out better than the first one and no more discrepancy in square footage plus appropiate comps were used. The old saying - 'You Get What You Pay For' is so true in this case. The appraiser of whom I met at the property had 15+ years experience and knew what she was doing. Experience makes such a big difference - even more so in this crazy market of ours.

Fast forward to today! Buyers are happy, moved in, getting settled and
loving their new home and neighborhood, Moon Valley!
 

 

 

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Anna “Banana” Kruchten

Broker, CRS, CRB

HomeSmart Real Estate

602-380-4886

Certified Residential Broker  CRB

Certified Residential Specilist CRS

AZ DRE Certified Real Estate Instuctor

 

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Topic:
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Arizona Maricopa County Phoenix
Tags:
appraisals must be challenged in todays market
moving to moon valley phoenix arizona

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Ambassador
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Anna- I'd want a Realtor like you on my side if I were in the market for Real Estate!

Aug 01, 2011 03:35 PM #1
Rainmaker
365,847
Bridget "Mortgage Mama" McGee
SWBC Mortgage 410-960-2061 - Baltimore, MD
Maryland Mortgage Mama NMLS#196068

HVCC (Home Valuation Code of Conduct) has done a huge disservice to the Real Estate Market.  The appraisal management companies are owned by the banks, the cost of the appraisal has gone up at least 25%, we have lost many great, honest appraisals because their incomes have been cut dramatically, the quality of appraisals have decreased dramatically (yours is just one of MANY horror stories!), delays are the norm now.

REPEAL HVCC!!

Your clients are lucky to have you in their corner!

Mortgage Mama

Aug 01, 2011 04:39 PM #2
Rainmaker
1,143,971
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

We can thank good ol Barney F and the the rest of the dolts on Capital Hill for this. I do agree (while a royal PITA) that there has been some benefit from the incessant changes to rules but the HVCC is ludicrous. I have one right now that was appraised, solid deal, recert value held and now the underwriter decided to deny it because she knew I was leaving! She obviously couldn't say that but the issue is the new investor I am going to now wants an appraisal that they order to ensure it was HVCC compliant??? Who is not doing them compliant these days?????

It is what it is and glad to see you didnt take NO, or the bs value, for an answer!!!!!

Keep up the great work!

Aug 01, 2011 05:32 PM #3
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Yeah that's crazy.  Hard to believe it took four appraisals before someone got it right.  Glad it worked out for your buyers though.

Aug 01, 2011 11:04 PM #4
Rainmaker
3,404,262
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

You deserve to be hot about this.  We all have to wonder how it got to this in the first place.

Aug 02, 2011 02:37 AM #5
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Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Who is making the money the lender or the appraisal company or the third party who controls the appraisals?

Aug 02, 2011 02:55 AM #6
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John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Anna.  Four appraisals is ludicrous..but good for you for sticking it out and making it happenfor your buyers, I hope they appreciate your dilgent efforts.  I agree with Bridge ever since HVCC the quality of appraisers and appraisals has greatly diminished. 

Aug 02, 2011 03:25 AM #7
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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Anna,  I am glad they finally came through for you - otherwise I was thinking you should change lenders.  Now wouldn't that add a whole new realm of craziness.

Aug 02, 2011 04:13 AM #8
Rainmaker
796,957
Liz Wallace
Century 21 Sherlock Homes - Rockville Centre, NY
Broker C21 Sherlock Homes, Rockville Centre, LI, N

They are killing us on the East Coast.  I feel sorry for the mortgage brokers because they get stuck with whatever shows up and like some of the comments above the good ones left because the management companies are slashing their fees.  It's a mess and we are caught in the middle.

Aug 02, 2011 06:13 AM #9
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Janna Scharf
Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID
Coeur d'Alene Idaho Real Estate Expert

The appraisal crazinness is unerversal, I'm afraid.  Same with BPO's being done by inexperienced agents and blowing deals. 

Aug 03, 2011 11:57 AM #10
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Anna Banana Kruchten Arizona's Top Banana!
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Kathy - thanks!  I do go to bat for my folks.

Bridget oh how we all wish HVCC would get repealed.  And yes this unfortunetly the norm these days.  But this one was beyond ridiculous.  The 4th appraiser told me straight out that she has gone back to school as her income has been cut in half and she's so done with this industry.  And that is what is happening - the good ones are leaving for greener pastures.

Oh yes there is Barney. Gee thanks but please take it back!  I have heard more stupid 'reason' for stuff then I have in over 24 years.  They've all gotten scared.

Roger - yes it is crazy.  And these are the nicest folks around.  Meeting the lady tomorrow for lunch so that should be fun. By now, I'm sure she's relaxed and starting to feel at home.

Will....I don't get hot that often as I don't need to. This one had gone too far.....just saying!

Harry well we know it's not the appraiser anymore.  Get what you pay for.

John - and this was supposed to 'help' home buyers.  None of the like all the run-a-round they get and the incessant demand for more and more documentation.  Yes these clients knew what it took and are very appreciative.  I must blog about that! 

Belinda - not sure the sellers would have waited any longer. They were tired of the mess.  But if we would have had to - we could have.

Liz - I think it's more the poor buyers and sellers stuck in the middle. We just do our best to get them moving forward.  Most of the time we can - thankfully.

Janna - I don't even want to get started on BPO'S!  I can't wait to hear what my lastest one comes back in at - I am sure they'll make it ridiculously higher than what the market can bear.

Aug 03, 2011 12:19 PM #11
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Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

Anna

It sure ios a shame that you have to go to bat like this, repeatedly. Something is amiss with the appraisal system we now have, at least based on the many stories I have heard.

That said, I have had several that have been right on target or even better than expected. It really depends on WHO and WHERE.

Jeff

Aug 03, 2011 03:59 PM #12
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