[in a very sarcastic tone of voice]
I love spending uncountable hours searching the internet, showing many properties, counseling the buyer, writing a contract (with many revisions), coordinating with the lender/loan officer, scheduling and attending multiple inspections, re-showing the property, counseling the client, meeting for lunch and coffee multiple time to sign disclosures and paperwork, running numbers, Negotiating repairs, etc., etc., etc., …. ONLY TO BE KILLED BY AN APPRAISAL THAT COMES IN $16,000 UNDER THE CONTRACT PRICE. This killed the deal for both the seller and buyer. It is not a flip, short sale, or bank owned. Don’t get me wrong, I love my job and I excel in these situations, but this is ridiculous!
[in a serious tone of voice]
Here are some of the wonderful aspect of the property…
New paint (inside and out); Newer roof; New electrical and plumbing; Renovated kitchen and bathroom; Newer central heat and air; Double size lot; Historic built-in china cabinet; New front door; Several new windows; Section 1 and 2 of pest report to be cleared, and more!
Yes, this property happens to be in Oak Park, Sacramento, but most all knowledgeable appraisers and agents know that Oak Park is “street by street.” I personally know several of the residents on this street. Comparing this home to homes a mile away does not do the home justice.
I am coming to believe that this area is being redlined.
Again, my question stands: When will the market drive the market oppose to appraiser and bank practices?
Keith Klassen – Real Estate Broker
Keith, sorry to hear about this situation. I bet that is really frustrating. Is there anything you can do? Can you provide superior and more adequate comps to the lender maybe? What were the comps like? Did the appraiser use bad streets in Oak Park in comparison to this one?
Yeah it’s unfortunate but has been happening more and more frequently!
What the worst situation is when you receive 8-10 offers on a property at a similar price and the appraisal comes in 10-15% lower. Just had one come in 18% lower even though there were great comps to support the higher value.
We do what we can, hopefully the changes coming will make it better.
Team Hybrid Real Estate