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Appraisals are way more art and fuzzy logic than hard and fast rules. They have value because they are supposed to follow some general rules and not get too into the emotional aspects people usually do when you talk about a house you live in/want to live in, but there is nothing actually objectively correct about what an appraisal spits out.
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Mar 18, 2024 21:58
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Appraisals exist only to convince the lender that the asset is worth what they are giving you for it, since they need something to take and sell if you default.
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Mar 18, 2024 22:01
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Thom ZombieForm posted:The appraisal I ordered came back 40k above my offer, wow. I was a backup offer. It was claimed by my agent the prior offer’s appraisal from ~3-4 weeks ago was my current offer amount. Nothing makes sense (taps thread title)
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Mar 18, 2024 22:39
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Someone mentioned earlier in the thread that they used a separate email address to deal with real estate related communication. Is that something common or more of a precautionary thing?
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Mar 19, 2024 00:16
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I don't think I got any spam emails from my mortgage despite rate shopping with three different banks. You could always use 'plus addressing' and make a rule to bin emails sent to that address when youre done. Shady mail that looks like genuine bank communication, now that I have in spades. Shoulda done the opt out thing linked a couple pages ago.
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Mar 19, 2024 00:20
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Re: appraisal... My first house appraised for 2500 less than offer and since it was a FHA/no down payment loan we had to come up with that difference. This house, the appraisal came back exactly what we offered, thought that was kind of strange honestly. But appraisals are like assholes,
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Mar 19, 2024 00:22
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net work error posted:Someone mentioned earlier in the thread that they used a separate email address to deal with real estate related communication. Is that something common or more of a precautionary thing? I use a burner email and phone number for any speculative real estate stuff, namely mortgage things. If you're shopping for a new mortgage or refi you're gonna want to do this. When you've narrowed it down to 1-3 people you're willing to do business with you can give them youre real contact info. The "lead selling" business is just insane. My last refi I put my info in bankrate.com and my (not real) email and phone number was pounded within 10 minutes. Low quality contacts mostly. I found the place I ended up refing with through them (I contacted THEM based on their offer on bankrate, not the other way around), but man.....if feels like wading through a sewer. Do not give them your real contact info. CloFan posted:Re: appraisal... My first house appraised for 2500 less than offer and since it was a FHA/no down payment loan we had to come up with that difference. This house, the appraisal came back exactly what we offered, thought that was kind of strange honestly. But appraisals are like assholes, Why is that strange? The most accurate value for anything is what someone else is willing to pay for it. The appriasal is just to make sure that is a rational actor and/or not just scamming the bank to walk off with cash money from the sale in cahoots with the seller. Motronic fucked around with this message at 00:44 on Mar 19, 2024 |
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Mar 19, 2024 00:38
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Eh, maybe that's the wrong word. Just felt like more of a rubber stamp based on our offer? The house is in a neighborhood where comps are decently higher than where we ended up. Oh well, doesn't matter, but it would have felt nice to have an appraisal higher than offer to feel like we 'got a good deal'. After 30 solid hours of deep cleaning I should have offered less! Disgusting PO lived in filth
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Mar 19, 2024 01:07
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It's not a rubber stamp unless your offer is rational. The comps show that it was, so congrats. That's how this works. It's doesn't even mean the house your'e buying is worth that much. It means it's plausibly worth that much in general to package along with a bunch of other loans of similar risk as the underlying security. Don't take it too literally or specifically. An appriasal is NOT a valuation. Motronic fucked around with this message at 01:16 on Mar 19, 2024 |
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Mar 19, 2024 01:13
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CloFan posted:Re: appraisal... My first house appraised for 2500 less than offer and since it was a FHA/no down payment loan we had to come up with that difference. This house, the appraisal came back exactly what we offered, thought that was kind of strange honestly. But appraisals are like assholes, Our most recent was $1k less than our offer. Our agent called the appraiser and was like... Seriously. Next day a "typo" was fixed. Lol
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Mar 19, 2024 02:27
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Think of it like when someone takes their tchotchke to Antiques Roadshow and gets an appraisal, and the appraiser gives them an "auction value" based on their experience of the same or similar items going recently at auction. But the item is unique, so sometimes they also give an "insurance value" that is always a lot more than the auction value. Why? Because the insurance value is to make you whole for a thing you value, but the auction value is what the highest bidder in a well-advertised auction might actually pay. Well, when you buy a house, you're the highest bidder at an auction. If you bought an item at an auction and immediately went to an appraiser, they're going to say "oh I've just seen an auction value for this item, it's <what you just paid>, that's the auction value today." The appraiser's job is to do like a sanity check. Did you just buy a beanie baby for $1000 but there are 18 nearly identical ones sold in the last week for $1.89 each? Well, that's enough grounds to suggest that while you might have valued your beanie baby at $1000, you're probably an insane outlier or there was something unique about this situation or something like that, so the bank that is backing your loan should probably expect your beanie baby that they foreclose on and seize and re-sell in six months to fetch a lot closer to that $1.89 than to your $1000. Absent some compelling evidence that you're an idiot that massively overpaid, or that you somehow got a screaming deal that will not happen again, the correct appraisal value is exactly, to the dollar, what you paid.
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Mar 19, 2024 02:32
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Per our realtor and lawyer's recommendations, we moved the negotiations to the lawyers to get the seller's agent out of the picture. Our lawyer received the contract this evening and it was missing a Property Condition Disclosure Statement (PCDS). Apparently in New York it's an option to just waive it and you credit the buyers $500. A lot of realtors suggest doing this so the buyers can't use the report to get concessions. All of this sounded insane to me, but in a rare case of good luck, a new law goes into effect on Wednesday that eliminates the waiver option entirely so our lawyer is going to ask for it tomorrow and they'll have to provide it. Hopefully we'll get some extra bargaining power out of this.
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Mar 19, 2024 02:42
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Leperflesh posted:Absent some compelling evidence that you're an idiot that massively overpaid, or that you somehow got a screaming deal that will not happen again, the correct appraisal value is exactly, to the dollar, what you paid. This is probalby the most succint definition of a residential appriasal possible.
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Mar 19, 2024 03:06
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Cyrano4747 posted:Something to keep in mind here is that care varies greatly, and can range from cooking meals and being someone to talk to all the way through literally wiping the person's rear end. End of life stuff in particular can get really harrowing.
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Mar 19, 2024 13:59
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net work error posted:Someone mentioned earlier in the thread that they used a separate email address to deal with real estate related communication. Is that something common or more of a precautionary thing? The people I bought my house from set up a houseaddress@theirlastname.com. I thought that was an easy way to manage things, especially since everything had to go to two people. I didn't bother with anything like that and google must have blocked whatever spam might have been sent since I didn't see any.
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Mar 19, 2024 15:07
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I did a double take, had to check the date on this, but, uh,  https://apnews.com/article/epa-asbestos-cancer-brakes-biden-72b0fa8b36adedaff6000034d35c2acd apnewswire posted:EPA bans asbestos, a deadly carcinogen still in use decades after a partial ban was enacted I guess there were only a handful of use cases left, none in the home or home construction materials, but I was a little surprised to see it still in active use anywhere
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Mar 19, 2024 17:45
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Clearly you’ve never gone house hunting in Massachusetts 
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Mar 19, 2024 18:12
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Pollyanna posted:Clearly you’ve never gone house hunting in Massachusetts Yeah, this. As a child growing up in an old house, I was always told not to bump into the large tinfoil wrapped pipes in the basement because they were asbestos my father had encapsulated ( with two layers of extra duty tin foil and duct tape!) House sold 4 years ago no problem. Far as I know they didn't remediate afterwards either. Same house; full of knob and tube, lead pipes (drain) lead paint (everywhere), and probably radon in the basement.
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Mar 19, 2024 18:21
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Yeah it's in like 85%+ of all homes built before 1980, probably a higher number than that. There was some stupid rule that old stock asbestos could still be installed until some future date, . Looks like it was phased out starting in 71, 73, 75*, 77, then a phase out ban in '89**, mining ban in 02, additional ban in '16 and final(?) ban in 24? God, we're *Insulation ban, seems like a big one **Overturned in 91 by 5th circuit court of appeals Tangentially, if you haven't seen it already, check out the black comedy "Thank you for Smoking" which is kind of a take at being the PR guy for a company like an asbestos mine, looks like it's free on Hulu
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Mar 19, 2024 19:50
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Gravity Cant Apple posted:Per our realtor and lawyer's recommendations, we moved the negotiations to the lawyers to get the seller's agent out of the picture. Our lawyer received the contract this evening and it was missing a Property Condition Disclosure Statement (PCDS). Apparently in New York it's an option to just waive it and you credit the buyers $500. A lot of realtors suggest doing this so the buyers can't use the report to get concessions. It was an option to waive without buyer's consent? Wild. Scumbag maneuvers, legally blessed
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Mar 19, 2024 20:58
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spwrozek posted:Our most recent was $1k less than our offer. Our agent called the appraiser and was like... Seriously. Next day a "typo" was fixed. Lol My wife is still salty about the appraisal on our place coming in $5k under what we offered (less than 1% difference) and that was three years ago now.
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Mar 19, 2024 22:06
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IOwnCalculus posted:My wife is still salty about the appraisal on our place coming in $5k under what we offered (less than 1% difference) and that was three years ago now. Our appraisal came in $5k over offer, inexplicably. I'm more inclined to believe it was a typo than anything else.
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Mar 19, 2024 22:10
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Well, poo poo. Termite inspection for the old house (that is currently listed on the market, and has an offer deadline in ~1 week) came back: "The garden room is leaking. Dry rot and dampwood termites are present. Damage is spreading to kitchen hardwood floors." The listed damage to kitchen floors is bullshit IMO. The floor is parquet directly on concrete. There was some damage to the floors in the kitchen next to the "garden room" before I even moved in, which never got worse that I observed. However, I have had issues with the garden room roof leaking, and I could believe that the adjacent kitchen might have related issues. This was an inspection by Premier Termite Inc. Obviously, some kind of action needs to be taken here, but what? Get a second opinion? I'm worried that this could spiral badly: replacing the roof, tenting the house, etc. EDIT: after panicking briefly, I asked my agent what his thoughts were, and he said basically "this inspection is for the buyers, not for you, I advise you do nothing". In other words, it gives the buyers some leverage to ask for a lower price and/or a reason to walk away, and that's the extent to which I should care. TooMuchAbstraction fucked around with this message at 01:02 on Mar 20, 2024 |
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Mar 20, 2024 00:39
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I know SFBA real estate market is nuttery defined, but LOL at selling a house with an active termite infestation and just not giving a gently caress.
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Mar 20, 2024 02:07
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Yeah I mean I'd say get rid of the termites and do some leak mitigation, even if you don't replace the subflooring I have to imagine that much would net you a pretty considerable ROI. I dunno if the market is just that nuts but of course your agent is going to say "gently caress it just list it for less LETS GO", he's trying to flip your place as quick as possible.
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Mar 20, 2024 02:22
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I'd be cautious listening to your realtor, houses aren't selling as fast as people would like nor at the price they want We bought our bay area house for slightly under ask, but it has problems and had been relisted twice and they finally corrected all the problems and got an updated inspection report with all the problems fixed and made it move in ready Location is going to make your decision highly dependent, and yeah your realtor just wants to sell it at any price; the guy with the lowest number of homes sold in the office each quarter gets laid off $50,000 in repairs might sell your house for $100k higher Does the inspection report say the floor plates are hosed Lockback posted:but of course your agent is going to say "gently caress it just list it for less LETS GO", he's trying to flip your place as quick as possible. We really need the ability to have multiple thread titles
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Mar 20, 2024 02:55
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Thanks for the feedback, folks. Offer deadline is 6 days, we'll see what the market says. I certainly can't get remediation and a new inspection done in that time. If the offers aren't good, then I guess we take the house off the market, fix it up, re-inspect, then try again  Hadlock posted:Does the inspection report say the floor plates are hosed It says what I quoted earlier, "damage has spread to the floor". And to be clear, this is a parquet floor directly on the concrete slab, some of the boards in the kitchen were damaged when I moved in, they're still damaged now, it's not new and I'm not worried about it. It's the ceiling that would be the target of concern.
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Mar 20, 2024 13:33
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Please take care of your house. If nothing else, you’ll have pride and peace of mind.
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Mar 20, 2024 13:45
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Frankly there’s nothing wrong with selling a house with known and disclosed defects. I, personally, would rather buy a house with damage and get a credit towards the repairs so that I know that the work done was of the quality that I would want and not the 30% cheaper fix the previous owner picked so they could check the box and get it to market.
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Mar 20, 2024 14:03
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Cyrano4747 posted:Frankly there’s nothing wrong with selling a house with known and disclosed defects. I, personally, would rather buy a house with damage and get a credit towards the repairs so that I know that the work done was of the quality that I would want and not the 30% cheaper fix the previous owner picked so they could check the box and get it to market. Yeah absolutely, but in this particular case I think, like, stopping the insects that are eating the house might be a worthwhile start. You don't need to neccessarily do full repairs but basic remediation I feel like would be worth it. But who knows, the offers will be proof in the pudding. Wouldn't be the first time I've been surprised on what people offer up.
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Mar 20, 2024 14:31
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OP you are going to get worthwhile offers on your house, people don’t care about this sort of thing, you’ll end up giving a credit on the sale and they’ll do halfass work and pass the buck to the next owner. Don’t stress about having to play this messed up game.
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Mar 20, 2024 14:50
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Lockback posted:Yeah absolutely, but in this particular case I think, like, stopping the insects that are eating the house might be a worthwhile start. You don't need to neccessarily do full repairs but basic remediation I feel like would be worth it. Again, as long as it's disclosed? Whatever. For all we know the buyer is going to level the lot and build a new structure. If it's disclosed and everyone knows what they're getting and account for it in the offers, it doesn't matter. Now that said, this is also why some sellers don't want to see the results of buyer inspections.
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Mar 20, 2024 15:00
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illcendiary posted:OP you are going to get worthwhile offers on your house, people don’t care about this sort of thing, you’ll end up giving a credit on the sale and they’ll do halfass work and pass the buck to the next owner. Don’t stress about having to play this messed up game. There’s no way to win this game except by not playing it. In fact, I don’t think there’s any construction in the United States that isn’t garbage. Good houses are a thing of the past. Unless you raze an existing one and construct your own, in which case congratulations, now there’s even more garbage construction and a new flimsy piece of poo poo!
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Mar 20, 2024 15:46
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Nah, you can absolutely build a solid, well designed house. It'll cost you a lot more and take a lot longer than you think/get quoted.
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Mar 20, 2024 15:52
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Lockback posted:Nah, you can absolutely build a solid, well designed house. I remember reading a post like this one from a young man named Grover
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Mar 20, 2024 15:59
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the problem is that your well-built house won't be worth more on the market than a shittily-built one, because buyers do not have the power or tools or desire to seek out the superior quality trusses or hand-picked sill plates or bespoke foundation engineering If you're building a house you intend for your great-grandkids to live in, OK, fair enough; if you intend to be able to extract value from your home to help fund your huge medical bills when you're 70, though, you're literally better off with the tract house built to the cheapest standard possible.
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Mar 20, 2024 16:15
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Pollyanna posted:There’s no way to win this game except by not playing it. In fact, I don’t think there’s any construction in the United States that isn’t garbage. Good houses are a thing of the past. You are 100% wrong on this, and based on your own posts have no basis to know if this is true or not. This is reminiscent of your previous anxiety posting while house shopping. Leperflesh posted:the problem is that your well-built house won't be worth more on the market than a shittily-built one, because buyers do not have the power or tools or desire to seek out the superior quality trusses or hand-picked sill plates or bespoke foundation engineering Unfortunately somewhat correct - it depends on the segment of the market you're in. The high end market is absolutely different than the "what's the lowest payment I can get for 4 bedrooms" market. But good houses absolutely exist and are being built today. In fact many of the oldest houses you're likely to see are still around because they were this. I live in one. But it sounds like Polyanna is doing the survivorship bias thing or similar where "the don't build them like ther used to" which si bullshit because all the lovely ones were torn down or burnt down, that's why you don't see them.
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Mar 20, 2024 16:26
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There is absolutely a long term value in saved maintenance from good construction. It's just unpredictable and difficult to quantify. You can't put a numeric price on the future value of all the times your pipes didn't leak.
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Mar 20, 2024 16:30
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maybe I’m fooling myself but I feel like I’ve been able to ascertain the house quality a few minutes into the tour. and now I can spy with my eagle eye uneven shoddily painted cabinets and hastily updated bathrooms just from the pictures
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Mar 20, 2024 21:51
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mistermojo posted:maybe I’m fooling myself but I feel like I’ve been able to ascertain the house quality a few minutes into the tour. and now I can spy with my eagle eye uneven shoddily painted cabinets and hastily updated bathrooms just from the pictures These are indications of maintenance quality, but yes.....they often go together.
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Mar 20, 2024 23:35
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