Appraisal in at Value? Tidewater?

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

 

This is always a trying time for homeowners and buyers (also agents)!   Will the appraisal come in at value, or will they actually come in the home for the appraisal?   I have had many lately that were done without the appraiser visiting the home in person.   Some were because there were comparables to support the value, and some were because the buyers were putting down much more than the loan value.   What constitutes an in-person inspection by an appraiser?

 

Well, I am not one to say....    I have a buyer currently that is putting down $700K on an $850K property, and they had to have an in-person appraisal.  OK, that was one I thought that would not happen, but maybe because it is a VA loan?

 

Now, we are waiting for the appraised value.   It is a VA loan, so will it become TIDEWATER?   That was a strange term I heard a couple of years ago, but difficult to "overturn".   I thought two years ago I had enough data to support the value of the contract price for my buyers, but did tell them it would be close.  OK, tidewater was called, and the appraiser was not to be swayed.

 

In a neighborhood where there are lots of comparables to support the sales price, USUALLY not an issue.  In a neighborhood where there are few comparables, could be an issue.   I know I recently sold a property where we were $40K higher than any resale in the neighborhood, and there was NOT an in-person appraisal needed.  WOO HOO!

 

 

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Rainmaker
5,442,917
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Times have certainly changed because of Covid-19 and I think we will be living with it for a very long time... 

Sep 17, 2020 06:38 AM #1
Rainmaker
1,020,077
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Odd times right now, but always good to hear a home has come in at or above value.

Sep 17, 2020 06:50 AM #2
Rainmaker
3,731,693
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Joan - the mortgage world is one that changes quickly at times with many new/revised rules taking effect.  Questions are definitely a part of that.  Answers change with each different scenario.  It's challenging.  

Sep 17, 2020 06:57 AM #3
Rainmaker
1,468,745
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Joan, I (we) have a client doing the same thing right now. With a VA loan I am finding (4th straight) that homes are not appraising. One of the comps the appraiser used is from MARCH 2019!!!!!! Crazy!!!

Sep 17, 2020 08:22 AM #4
Rainmaker
1,426,735
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Joan Cox - It is very rare that I have a VA loan. In most cases where there are multiple offers, I will let the seller know that there are additional requirements or processes to go through. Also additional costs for the seller.  I have seen that some lenders waive the appraisal. 

I am experiencing appraisers coming from other areas who do not know our market.  It gives me heart-burn! LOL!

Sep 17, 2020 09:49 AM #5
Rainmaker
4,442,797
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Barbara, and think you are completely correct.

Sep 17, 2020 01:19 PM #6
Rainmaker
4,442,797
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nick, we are seeing some not coming in at value, and do not have a declining market either.

Sep 17, 2020 01:20 PM #7
Rainmaker
4,442,797
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Michael, you are so right, lending has rules change on a dime, and couldn't even think about keeping up.

Sep 17, 2020 01:21 PM #8
Rainmaker
4,442,797
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeffrey DiMuria 321.223.6253 Waves Realty I did hear, and hope the Sellers come down in price.    Four homes not appraising, goodness.....

Sep 17, 2020 01:24 PM #9
Rainmaker
4,442,797
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sheri, we don't see many appraisers out of area around here, but can see that around Sedona! 

Sep 17, 2020 01:25 PM #10
Rainmaker
396,366
Kona Home Team (luva llc) Lance Owens (RS)
Kona Home Team (luva llc) - Kailua-Kona, HI
Getting transactions done, when nobody else can!

The anticipation is always a bummer, but on another note I am glad to see you have clients putting down significant downpayments. 
I had just had a buyer close on a home 2 weeks ago. 
He had $450k down on a $680k home, the bank got so difficult, he just wrote a check for the ballance and said bye-bye to the lender. 
Its good to know how strong this market is, and how strong buyers are right now with significant down payments ! 

 

Sep 17, 2020 11:26 PM #11
Rainmaker
5,977,398
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Joan, for sharing your experience with appraisals.

Take care, be safe and have a great day.

Sep 18, 2020 03:10 AM #12
Rainmaker
3,038,280
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I would be very upset if an appraisal came in low and the appraiser didn't even visit the home to compare it properly.

Sep 18, 2020 06:11 AM #13
Rainmaker
4,442,797
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kona Home Team (luva llc) Lance Owens (RS) nice to see you!   I have this happen a couple of years ago where the bank got very difficult, and the home ws $700K, very large down payment, and he decided to get it out of his investments and say goodbye to the lender too!  

Sep 18, 2020 06:13 AM #14
Rainmaker
4,442,797
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thanks for stopping by Roy.

Sep 18, 2020 06:14 AM #15
Rainmaker
4,442,797
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Brian England so far, I have not heard of one NOT coming in when the appraiser did not physically go to the home.   All of mine have come in at value.

Sep 18, 2020 06:14 AM #16
Rainer
509,588
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

It depends on who you're representing, the buyer or the seller, doesn't it?

Sep 29, 2020 12:36 AM #17
Rainmaker
4,442,797
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kimo Jarrett well, it does, sort of.   I have had buyers tell me --- I do not want to lose that house.   So, you wait to see what the Seller will do, then do what you need to do for the buyer.

Sep 29, 2020 07:57 AM #18
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Rainmaker
4,442,797

Joan Cox

Denver Real Estate - Selling One Home at a Time
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