Comments on: Positive Home Appraisal and Roof Repair Requests

By: jim

jim — Thu, 26 May 2005 01:05:51 +0000

Yeah Jeff I saw that article, it made me think about the over appraisal too. While I don’t think that it happened (everyone I’ve talked to who has looked for a house expected my home to be over $300k given the characteristics) but it is a possibility.

However, I didn’t decide to pay that price based on the home appraisal – it was based on a month of searching (which isn’t a long time by any means) and understanding the local market conditions. I will be living there for several years so I don’t think this will be a problem for me. 3/1 ARM folks might need to be wary though.

By: Jeff Running

Jeff Running — Wed, 25 May 2005 23:19:04 +0000

Here's a CNN/Money article on inflated appraisals. Appraisal fraud: your home at risk

By: jim

jim — Fri, 20 May 2005 14:31:14 +0000

I don’t know if the appraiser knew about the set price (I’m inclined to think he did) but what motivation would he have to appraise it higher? I already signed a low-appraisal waiver (stating I’d pay the difference) and I would’ve had to assets to cover the different – so the lender wouldn’t have taken any risk if the appraisal were lower. While I don’t doubt your experience Jeff, I don’t see why the appraiser would side with me over the lender.

By: Jeff Running

Jeff Running — Fri, 20 May 2005 14:27:34 +0000

I have found that appraisals made after a price has been set for a property seem to be a few thousand dollars more than the price. It’s almost as if the appraiser is attempting to provide the paperwork that the buyer and lender need. It would be interesting to hire an appraiser that has no knowledge of the set price. I’m assuming the final appraisal would be quite different. After the close I received a copy of the appraisal report which includes samples of other similar homes to provide a reference point. Each home had a series of data points (square footage, acres, upkeep) that were assigned points. The points were then used to derive the appraisal price. It seemed like the appraiser had a lot of room to adjust the price to meet the lenders needs.