I can't remember the last time I had an appraisal issue on a purchase. Yes, I have had a few refinances take a hit on the value but not once on a purchase. So they say there is a first time for everything and it just happened to me.
My client was willing to do just about anything to get the perfect buy, it is a buyer's market anyways right?? With so much inventory out there and prices below market value banks are ready to lend money to good, low risk clients. My guy has 800 credit scores with verifiable income and assets, great job history, etc etc etc....So, i got him approved for 100% financing which today is like getting gas under $3 a gallon. Everything was going great until the appraisal came in.....
Contract is "as is", appraisal is "as is", appraiser ruined my deal and basically described every single detail that was unfinished. The home was being remodeled and seller had to leave on a job transfer to Wisconsin. The home had a new kitchen, new floors, new bathroom(s) etc. Here is the hold up. The master bathroom was unfinished but let me explain. The dirt rock is installed, plumbing is done only thing remaining to be completed is shower pan, tile, and fixtures......Besides this, 2 cabinets left un-hung and tile wasn't grouted.....Oh did I mention the value "as is" was $30K over the purchase price!
The home is a 3 bedroom 2 bathroom and already has 1 perfectly workable bathroom. The buyer intends to finish the home as to his own liking after he gets in the home instead of having to see something he doesn't like and has to rip it out and install a new one. This being appraiser marks the home unlivable with structural risk! Are you serious!!??
Later, they had the nerve to add that base boards and paint had to be applied in order for the home to be deemed livable. You can imagine how the buyers felt after I had to tell them this.
I can remember doing way worse types of deals before with Stated Income Stated Assets at 100% with only half the home being completed. I really cannot believe that this happend and that the appraiser wasn't willing to work with the parties to close a solid deal. The client was fully approved and getting a great deal on this home and if needed he was willing to put 5% down and pay the closing costs, seller was only walking away with $5k.
If anyone has some opinions on this please let me know. It seems with all the houses on the market and a good number being distressed i think we all need to work together to stablaize our market.
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