What the heck is wrong with some appraisers? Some doofus turned in an appraisal last week on a home in Elk Grove he knew was a short sale and he knew it was a HAFA short sale, preapproved for the HAFA program and the offer was accepted by Bank of America. Yet, what does he do? He turns in an appraisal that is under the accepted offer price by less than a half of a percent. His appraisal is $1,500 under contract price. That's just plain petty. And stupid.
Not only that, but this guy is some out-of-area appraiser, which is pretty much what you get when you accept an offer from a buyer who is using an out-of-area mortgage rep and company. The problem with out-of-area appraisers -- OK, one of the many problems with out-of-area appraisers -- is they don't know the neighborhood. This particular neighborhood of about 4 blocks has a homeowner association. The difference is notable among those homes that do not belong to the HOA.
Another problem is he didn't ask about the upgrades, didn't note any of them. The home has a raised elevation, a series of arches in the front made from stone, Seers 14 AC upgrade, surround sound and home theater installation, plantation shutters throughout, just to name a few, and any one of those could have accounted for the $1,500 difference. He could have called the listing agent, like most appraisers do who don't know the area.
He had no business accepting this appraisal business.
Moreover, as comps, the appraiser used one of my other short sale listings in Elk Grove, which is located in the same neighborhood. He never called me. He called another agent, though, and used that agent's short sale listing as a comp -- a short sale that is not yet approved and due to problems with the second probably won't get approved and therefore will NOT be a comp -- but he never called me. If he had, he would have discovered that I had received 6 offers on that home, with the highest at 9% over his goofy appraised value. Buyers are not paying over market value today. Not in Elk Grove.
We have a closing date set in early June. We could probably get Bank of America to adjust its approval letter and go through the bureaucratic work of the HAFA program to obtain 2 more approval letters with a reduced value, but why? I'd much rather fight the mortgage company and shoot for a review appraisal from a reputable company. From some guy who has half a clue. I know they made changes to the HVCC, but it's still messed up.
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
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