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The last line of defense, the appraisal

By
Real Estate Broker/Owner with (831) 626-4000 CA #01772851 HI #RB-21268

Here in Del Norte County, investors are out there snapping up great deals in real estate, usually "as is" properties, and usually with cash. These are knowledgeable buyers who don't need/want the protections afforded the first time home buyers or those who need to get a loan. They don't ask for an appraisal.

But how about the home buyers who purchase these "great deals" who plan to live in them? Are they really getting a great deal? If it's a REO, definitely get a home inspection done before you go forward with the purchase. There can be so many things wrong with the house, and it could cost thousands of dollars to fix.

Now, trying to get a loan for your purchase can really work in your favor if you don't know what you are doing. The lender will make you go through hoops you might not appreciate at the time, but it's for your own good. If you lose the deal because major defects are found, you are much better off in the end.

But the last line of defense is the appraisal.

- if you try to get a loan, the lender will want an appraisal. If it doesn't appraise, you come out the winner. You would have paid too much for the property.

- but IF YOU PLAN TO PAY CASH, spring for an appraisal no matter what anyone says. You may be paying too much!!

 

Posted by

Hella Mitschke Rothwell, Broker/Owner/REALTOR 

 

Let me be your independent real estate broker for oceanfront and oceanview property in California and Hawaii.  If you are a seller/owner, I will travel to your property to help get it ready for sale, then list and market it. If you are a buyer and we have a Buyers Representation Agreement in place, I will preview property on your behalf anywhere in California and Hawaii.  Please call me to discuss how I can help you.

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Member: Honolulu Board of REALTORS; National Association of REALTORS; Hawaii Association of REALTORS; Del Norte Association of REALTORS; California Association of REALTORS; MLSListings, Inc., the premier MLS listing service in Northern California.

 

________________________________________________________________

Hella Mitschke Rothwell (R)

Real Estate Broker/Owner/Realtor®
Licensed in California #01772851 & Hawaii #RB-21268

Tel. 808-226-1095 or 831-626-4000 

Fax 1-877-822-9332

www.HellaHawaii.com

www.HellaRothwell.com

www.RothwellRealty.com

HAWAII OFFICE: 1128 Ala Napunani Street, #1809, Honolulu, HI 96818

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Email: HellaRothwell@gmail.com


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Disclaimer: Hella Rothwell does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

John Pusa
Glendale, CA

Hella - Thank you for sharing quality information on the last line es, the appraisal.

Oct 22, 2011 04:51 PM
Ed Gillespie
WealthWise Mortgage Planning, a Division of American Pacific Mortgage Corporation NMLS #1850 - Folsom, CA

Great advice, Hella!  Hadn't occurred to me since I am a lender. ;-]  Now that you can get a cash out loan immediately after a cash purchase, buyers won't want any unpleasant surprises when that appraisal comes back.  The less value the property has, of course, the less cash they can recover.

I am giving this a suggest--this is excellent counsel that every cash buyer needs to hear!

Oct 22, 2011 06:42 PM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

John: thank you for your support.

Ed: The appraisal kills so many loans, but if you look at it from the side of the buyer, it's for his protection: you are paying too much! And thanks for that additional angle, I'll have to remember that.

Oct 23, 2011 12:46 AM