SELLER WILLING TO SELL AND BUYER WILLING TO BUY - APPRAISER SAYS NO

By
Real Estate Agent with Sellstate Achievers Realty Network

THIS IS THE JUST UNBELIEVABLE!!!!!!

We have a buyer who is ready,willing, and able to make a purchase - has found their dream home to retire in - enough down payment money - has wonderful credit - has shopped till they drop - knows that they made a wise chose in location and quality in a home - Your asking "What is the problem?" 

THE APPRAISAL

Yes, even though the home can appraise for the purchase price the appraiser says NO!!!

Is this crazy? In today's market when it is so so hard to find a qualified buyer that is approved for a mortgage here we go. The lender applied such strick guide lines for the appraiser - they made this impossible. Imagine lending money to someone who can actually pay their mortgage!!

Can you believe this? The property would appraise - we have the comps but the LENDER wants the cheapest and shortest listings and sold properties available and they say that location does not matter anymore!!

 

What next?

CINDY ROPER

SELLSTATE ACHIEVERS REALTY

239-281-0856

Comments (19)

Dwayne West
Atlanta Real Estate - Canton, GA
Canton Georgia Real Estate
I think they are taking things to an extreme measure that will be very bad over the next few months.
Jan 21, 2008 06:22 AM
Kathleen Lunsford
Century21 New Millennium - Warrenton, VA

I feel your pain,  it is very frustrating if it is not one thing it is another..good luck

Jan 21, 2008 06:23 AM
Kevin McGrath
Long & Foster Real Estate Companies- Fredericksburg/Spotsylvania - Fredericksburg, VA
Long & Foster Real Estate Companies
How about a different lender? Sounds like a tough situation.
Jan 21, 2008 06:23 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes
I think the value of a home in large part is determined by what a buyer is willing to pay...and what a seller is willing to sell for. We understand the need for an appraiser to make sure nothing bad is going on...but when that is determined the market needs to find itself without artificial ceilings.
Jan 21, 2008 06:24 AM
Alix Pinzon
Open Mortgage, LLC NMLS # 2975 - Downey, CA
(562)743-6086

Yes, as an appraiser we are forced to use the most recent and most similar comps available, regardless of what other comps that can be found.  If they're the best comps, they should be used.

Jan 21, 2008 06:26 AM
Greg Nino
RE/MAX Compass - Houston, TX
Houston, Texas

Do you represent the buyer or seller, or both? Tell the lender to find a new appraiser - PERIOD! My loan officer wouldn't work with someone who is this extreme or paranoid.

 

Jan 21, 2008 06:27 AM
Dean Moss
Dean's Team - Keller Williams Realty Partners Chicago IL - Chicago, IL
Dean's Team Chicago IL Real Estate Team

Cindy -

You've got to go to a different lender if the appraiser is intransigent -

UNLESS the buyer could come up with the deficiency in cash, the seller will take less or some combination of the two!

Perhaps you can find a meeting of the minds, somewhere in between.  The bank doesn't care what the property sells for, just what the collateral is.

Possibility?

DEAN & DEAN'S TEAM CHICAGO

Jan 21, 2008 06:27 AM
.... ...
.... - Mauldin, SC

The pendulum has swung too far over. It needs to swing back to the middle.  Tightening up the restrictions is good. But, over doing it is shooting themselves in the foot.

Perhaps try another lender that may not have such restrictive guidelines.

Jan 21, 2008 06:28 AM
Matt Kofsky
Transaction Realty 500 Reno, Nv. - Reno, NV
The house also has to qualify.  The appraiser is there to protect the lender.
Jan 21, 2008 06:28 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
I don't understand if the comps support the price why does the appraiser say NO?  Is the home in an area considered a "declining" market which means tighter financing?  An appraiser can't randomly create a lower value for the property without facts to support it and a lender can't tell an appraiser how to appraise a property.  The having guidelines to follow.  So I'd ask the lender more serious quesitons before I gave up on the deal.
Jan 21, 2008 06:28 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos
Get a different appraisor or lender.  Maybe a larger down payment will help.
Jan 21, 2008 06:32 AM
Eileen Liles
970-216-0530 http://WeSellDeltaCounty.com - Cedaredge, CO
Macht-Liles Real Estate Group - Cedaredge, CO
I'm with the rest....find a new lender.  Right here in our county you have some drastic differences in what the lenders will do.  Hang in there, those good buyers are too hard to find to let it slip away because of a lender.
Jan 21, 2008 06:42 AM
Clint Haynes
Peoples Home Equity, Inc. - Mount Juliet, TN

We're getting more strict appraisal guidelines to protect the lenders.  Because of declining markets and shaky appraisals of the past some lenders have gone overboard.  I work for a broker set up with dozens of lenders, and we know which lenders to use (or not use) if there is possibly an appraisal issue.  It's probably not the appraiser's fault, they have to protect themselves and abide by guidelines.

I'd be very interested to know how this turns out when it closes.  Have faith, it will close.

Jan 21, 2008 06:46 AM
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

Try another lender.  New appraiser, maybe someone less fearful. 

Jan 21, 2008 06:53 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

find a new lender.

that could possibly be me.

i'm in the cape.

feel free to call.

jay

239-745-5646

Jan 21, 2008 06:55 AM
Esko Kiuru
Bethesda, MD

Cindy,

It's very unfortunate that the current mortgage environment has scared some lenders to become excessively cautious. They go beyond being prudent. But there are others who still operate "normally" and will work with your buyers.

Jan 21, 2008 09:12 AM
Susan Milner
Florida Future Realty, Inc. - Cape Coral, FL
Cape Coral Real Estate Broker, FloridaFutureAgents

Cindy,

Congrats on getting a qualified buyer & seller to agree. I'll go with what everyone else seems to be saying "try another lender" Let me know how it goes ;)

Jan 22, 2008 02:35 PM
Cindy A. Roper
Sellstate Achievers Realty Network - Cape Coral, FL
SWFlorida Realtor-Cape Coral Home

Thank you everyone for your suggestions on this problem - we now have an in-state Lender and also another appraiser who has the experience and knowledge that is necessary to complete an accurate report. Again, I truly do appreciate all the support from our great Networking Systems.

Have a Great Day!

Cindy Roper,PA

239-281-0856

Jan 24, 2008 05:09 AM
Paul Jerome
Seller Helps Buyer - Clearwater, FL

Cindy, hopefully you got that one through to a successful close.

Paul

Feb 23, 2008 09:19 AM