Real estate General topic

[paulsharvey]

I'd take a look at the comps to see how comparable they really are.

Fair at best? I do not believe the took the pond/lake access into account (non of the comps had water access, or a correction value for it), but I'll admit, it's pretty limited water access. These kind of properties aren't available by the dozens within a 10 mile radius, so it does make for a hard comparison.

I'm Not saying the appraisal is wrong either; and my semi educated, gut feeling, is at $400k, it would have sold already. It also tells me, that Many people asking $450-500 on ads, are Not closing at those prices, and must be lowering significantly.

As a example, the two closest comp, one was around $369 and another was close to $480.

 

[JasperFrank]

Five miles just out side the Urban Expansion Plan.

 

[paulsharvey]

I did tell my wife last night, maybe we should have went with a mortage company more specialized in rural acreage? One we are using has good rates, fair closing costs, ect, but they are just a general mortgage outfit.

 

[paulsharvey]

So, I would hate to navigate all this without a buyers agent. No idea how much work they do on a typical home, but she has had to get info many times from sellers agent that mortage company wanted.

 

[2manyrocks]

Fair at best? I do not believe the took the pond/lake access into account (non of the comps had water access, or a correction value for it), but I'll admit, it's pretty limited water access. These kind of properties aren't available by the dozens within a 10 mile radius, so it does make for a hard comparison.

I'm Not saying the appraisal is wrong either; and my semi educated, gut feeling, is at $400k, it would have sold already. It also tells me, that Many people asking $450-500 on ads, are Not closing at those prices, and must be lowering significantly.

As a example, the two closest comp, one was around $369 and another was close to $480.

I think you can search Refin or one of the other sites for actual closed sales prices yourself, and I'm pretty certain your agent should be able to get this information for you if you can't find it. My understanding the trend in the $400k price range is down, but the median home price is being reported as increasing because of continued sales of higher priced properties to people with cash not relying on as much financing. So look at the actual recent sales in your area to see what's really happening.

 

[ultrarunner]

No matter the field, it's hard to find competent help. Most people suck at their job.

and just when all the kinks get worked out and the organization runs like a well oiled machine key people quit, retire, transfer, etc…

 

[2manyrocks]

Or higher ups decide to "right size."

 

[ultrarunner]

Top appraiser who specialized in unusual and difficult properties to appraise said conventional appraising is flawed from the start and explained why.

Appraisers rely on comps in determining values but comps are homes that have sold and no longer available to purchase…

This is a problem in both rising and declining markets.

If prices are rising what good is it looking at homes not available… the true measure is comparing what’s active on the market…. makes sense to me.

When I bought moms place as-is the Estate Lawyer ordered an appraisal who was most thorough and came up with a number…

The family rejected it saying spending a 100k would generate at least 200k additional in value as everything is very much 1950’s.

Family said if I bought it I would have to be 75k over appraised value and of course no selling costs such as commission paid out…

 

[ericm979]

Once when we refinanced we found that the lender was using an appraiser from down in the city who was entirely unfamiliar with rural properties; you can't look in the one-mile-radius "neighborhood" because there's like a handful of properties perhaps one of which has changed hands in years.

We had that problem when we bought our place in California 27 years ago. They missed some stuff that we had to get corrected.

The appraiser who did the property in Oregon we bough recently did a really through job. The number didn't quite match the selling price but the bank said its close enough.

 

[paulsharvey]

Even if someone can afford to make their mortgage payments, the loan will go into default if they can't keep the property insured. Lenders used to have the option of force placing coverage to only protect the lender's mortgage balance, but this didn't protect the homeowner's equity and the coverage was extremely expensive. I've been wondering what lenders are currently doing in states like California and Florida where insurance companies have stopped writing policies on a broad scale affecting so many instead of the lack of coverage formerly mostly being a matter of someone not paying their insurance bill on time or being seen as too risky to carry?

In Florida, there is Citizens insurance, which is basically min legal insurance that is a last resort. It's somehow affiliated with the state, and it doesn't cover replacement, or liability, or possessions. Couple years ago, we had them, and it's really just protecting the mortage company. If I remember right, they basically insured the remaining balance of the mortage, minus land value, minus deductible, minus hurricane deductible. So, it would have covered like $27,000, before the $10k deductible on current house.

I have been told about some beach front places needing land insurance in addition to homeowners; incase the lot/parcel itself is no longer build able, do to erosion.