Appraisals

[RobertLarsen_IHB]

I remember not too long ago that realtors were telling us that we could NOT use the REO comps when calculating what to bid on a property

Haha yah, I've heard that a couple times. I've actually said that a couple time, but in a different context. It's a perfectly valid point ever since appraisers started to use homes that were in escrow as comparables.

 

[RobertLarsen_IHB]

Let me get this straight....

They want a government subsidized loan

but they are complaining that the gov't won't subsidize a loan that appraisers that the gov't trusts (not the same as gov't assigned, btw) won't mark to fantasy?

I guess the era of expectations of "free lunch" isn't over, even if the actual era for anyone other than banks, is.

I think they are basically saying that they don't want to do loans anymore (at least for a while), especially in California, Florida, Nevada and a few other places. They're probably trying to be just as smart as those here who think the market has yet to bottom.

Yah, I don't think it's asking for a free lunch exactly here, at least not in all circumstances. I've been a part of two deals in the past 4 months where the buyer had to cough up more cash to make up for the low appraiser. I'm not saying they've been bad appraisers either, but appraisers have been coming in from different counties, especially if it's a distressed property, and that has made it extremely difficult to get an accurate appraisal. For example, my uncle is selling his home right now up north a little bit and the buyer is the next door neighbor and is actually willing to pay $400,000, but unfortunately with the minimum 20% down. The appraisal just came in at $335,000. I don't even know what the exact value is because I'm not from the area, but I've tried to look at the comps. There has been no 2 bedroom comparable sales inside his gated neighborhood in the past 2 years, because there are actually only 4-5 in the entire neighorhood, most of them have gone to 3 bedrooms. So the only comps are two bedrooms outside the gates in other neighborhoods.

 

[freedomCM_IHB]

VA loan=gov't subsidized=free lunch.

they want the free lunch, but not to play by the gov't rules meant to reduce the gov'ts exposure to risk.

I guess the whole "welfare queen" diatribe that the republicans roll out for the poor doesn't apply to these house buyers sucking at the government's tit, eh?