Fort Lauderdale Area Appraisal Question

Lobstercatcher229Lobstercatcher229 Posts: 4,844 Captain
Hi all,

I am involved in trying to buy a house. We got involved with a lender who chose the appraiser who then appraised the house for enough less than the house purchase price that he says that there will be an extra 3 thousand dollar fee to lend the money. Has anyone run into that in trying to borrow money for a home?

In other words we are trying to buy a house with an agreed purchase price of about 110k, his appraisal is 95k (hard to find much in Tamarac for 95k that you would want to live in, I think that figure is low). So to complete the loan he wants another 3 thousand dollars in addition to the normal lending fees.

Replies

  • hooknlinehooknline Posts: 5,301 Admiral
    Hire your own appraiser.
    If I say something that offends you, please let me know so I can say it again later

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  • Joey ButtonsJoey Buttons Posts: 11,849 AG
    hooknline wrote: »
    Hire your own appraiser.

    You can't these days.

    Banks use their own so they don't get inflated numbers.

    Appraisers that want to stay on the banks approved list will make the appraisal come in under to keep their job. Banks don't want to lend money right now.
    FSU is the best football team of all time!
  • CatBoxCatBox Posts: 3,709 Captain
    Are you saying the LENDER wants $3k? If so, you have to give it to them to make the LoanToValue work for them.

    If the appraiser is asking for it, forget it!! I just bought a house and the appraisal fees were $450???!!!!

    Banks are happy to lend money with 80% LTV.
  • hooknlinehooknline Posts: 5,301 Admiral
    Is the 3k going to the purchase price or is it in addition to the purchase price and closing costs?
    If I say something that offends you, please let me know so I can say it again later

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  • Lobstercatcher229Lobstercatcher229 Posts: 4,844 Captain
    hooknline wrote: »
    Is the 3k going to the purchase price or is it in addition to the purchase price and closing costs?

    the 3k is going to the lender and is in addition to the purchase price and closing costs.
  • Lobstercatcher229Lobstercatcher229 Posts: 4,844 Captain
    CatBox wrote: »
    Are you saying the LENDER wants $3k? If so, you have to give it to them to make the LoanToValue work for them.

    If the appraiser is asking for it, forget it!! I just bought a house and the appraisal fees were $450???!!!!

    Banks are happy to lend money with 80% LTV.

    Our appraisal fee was $550.
  • CatBoxCatBox Posts: 3,709 Captain
    How much are you putting down??? Are you higher than a 90% LTV when you pile on closing costs?
  • bigironbigiron Posts: 543 Officer
    They are asking for the additonal $3k because the appraisal came in lower. Take a close look at the appraisal and the comps listed. Keep in mind that short sales and REO's will come into play. Also, appraisers can now be held accountable (what I was told anyway) for "fraudulent" appraisals, so they are very conservative and tend to lean towards the lowest possible price based on the area. I had an appraisal done a few years back and there was a short sale in the mix so it brought my square foot price down. One thing I argued is that one of the comps was listed with "extensive upgrades and improvements". Problem is I actually visited that house and it was an original 70's house with NO upgrades or improvements." I called the appraiser and he gave a me the " You don't understand how this works" routine, I said, that may be, but I can still add and subtract! The appraisal was OK anyway, but I really didn't think it was fair.
  • Lobstercatcher229Lobstercatcher229 Posts: 4,844 Captain
    bigiron wrote: »
    They are asking for the additonal $3k because the appraisal came in lower. Take a close look at the appraisal and the comps listed. Keep in mind that short sales and REO's will come into play. Also, appraisers can now be held accountable (what I was told anyway) for "fraudulent" appraisals, so they are very conservative and tend to lean towards the lowest possible price based on the area. I had an appraisal done a few years back and there was a short sale in the mix so it brought my square foot price down. One thing I argued is that one of the comps was listed with "extensive upgrades and improvements". Problem is I actually visited that house and it was an original 70's house with NO upgrades or improvements." I called the appraiser and he gave a me the " You don't understand how this works" routine, I said, that may be, but I can still add and subtract! The appraisal was OK anyway, but I really didn't think it was fair.

    Thanks for relating your experience. I had heard someone say that when a certain politician would say, "I just want to help you, what he really meant was, I just want to screw you." I had felt like I was getting screwed. I guess it goes back to the golden rule: "he who has the gold makes the rules."
  • Lobstercatcher229Lobstercatcher229 Posts: 4,844 Captain
    CatBox wrote: »
    How much are you putting down??? Are you higher than a 90% LTV when you pile on closing costs?

    good question. on a 95k appraisal and a 111250.00 agreed upon price we are putting down 17650.00
  • BobDBobD Posts: 1,969 Captain
    talk to a different lender. Is your credit good? There's money out there.
    Build your dream or someone will hire you to build theirs.
  • Machine HeadMachine Head Posts: 2,634 Officer
    Don't do it....
    "There is nothing, absolutely nothing, half so much worth doing as simply messing about in boats." - Kenneth Grahame
  • INTREPID377INTREPID377 Posts: 3,737 Captain
    good question. on a 95k appraisal and a 111250.00 agreed upon price we are putting down 17650.00

    I could be wrong but I don't think the lender is asking you for $3k, I think you're being told that you need to put another $3k down to reduce the Loan To Value amount. That would put you close to 20% down which also should prevent you from having to pay Mortgage Insurance as part of the loan. If my guess is right, the request seems reasonable and may even be in your best interest.

    If my guess is wrong, I'm curious as to what the lender is using your $3k for?
  • CatBoxCatBox Posts: 3,709 Captain
    good question. on a 95k appraisal and a 111250.00 agreed upon price we are putting down 17650.00

    OK, I am NOT a mortgage broker....... BUT.... Sell Price $111,250 - $17,650 = $93,600 84% LTV

    Add in the additional $3k $111,250 - 20,650 = $90,600 81% LTV....

    Seems to me that he is trying to get more in line..
  • Lobstercatcher229Lobstercatcher229 Posts: 4,844 Captain
    I could be wrong but I don't think the lender is asking you for $3k, I think you're being told that you need to put another $3k down to reduce the Loan To Value amount. That would put you close to 20% down which also should prevent you from having to pay Mortgage Insurance as part of the loan. If my guess is right, the request seems reasonable and may even be in your best interest.

    If my guess is wrong, I'm curious as to what the lender is using your $3k for?


    These real estate contracts and terms can be hard to read. The way I read his letter is that if he is going to lend money on a property with less than 20 percent down that his company requires a fee to do that. He says that another option to avoid his "fee" is to increase the down payment so that his company isn't in the position of lending more than 80 percent of appraised value.

    To all who have helped me understand what is happening I appreciate your trouble. We have dumped this lender and have come up with another source of funds. I just wanted to know if others had experienced this sort of treatment.
  • hooknlinehooknline Posts: 5,301 Admiral
    The lender was just trying to milk another 3k out of you. Glad you didn't fall for it
    If I say something that offends you, please let me know so I can say it again later

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  • Lobstercatcher229Lobstercatcher229 Posts: 4,844 Captain
    CatBox wrote: »
    OK, I am NOT a mortgage broker....... BUT.... Sell Price $111,250 - $17,650 = $93,600 84% LTV

    Add in the additional $3k $111,250 - 20,650 = $90,600 81% LTV....

    Seems to me that he is trying to get more in line..

    Again I appreciate the wisdom of the forum. The lender is considering the LTV as 95 thousand so if he lends us the 93,600 he is really making close to a 3 percent down loan in his estimation. For us to enjoy the privilege of his services we have to pay that 3 thousand dollar fee because of our "low" down payment in relation to what his appraiser says it is worth.

    It is sort of complicated mumbo jumbo game and the low appraisal brings up some new terms that I was unaware of previously.
  • CatBoxCatBox Posts: 3,709 Captain
    What's so to hard to understand, the appraisal came in at $95k, your are paying $16k too much...

    If you want the house then put more cash out or get the seller to lower his price.
  • ChuddybuckrivetChuddybuckrivet Posts: 3,156 Officer
    Just curious, where in Ft Laud?
  • pupraiserpupraiser Posts: 10,261 AG
    Why would you want to buy a house that is appraised below the selling price?
  • navigator2navigator2 Posts: 22,439 AG
    pupraiser wrote: »
    Why would you want to buy a house that is appraised below the selling price?

    No kidding.
    [SIGPIC][/SIGPIC]
  • Lobstercatcher229Lobstercatcher229 Posts: 4,844 Captain
    pupraiser wrote: »
    Why would you want to buy a house that is appraised below the selling price?

    You might want to do that if you believed that the area was increasing in value and that the appraisal was on the low side. Time will tell if your opinion was correct.
  • Lobstercatcher229Lobstercatcher229 Posts: 4,844 Captain
    Just curious, where in Ft Laud?

    Tamarac
  • treemanjohntreemanjohn Posts: 3,319 Captain
    You might want to do that if you believed that the area was increasing in value and that the appraisal was on the low side. Time will tell if your opinion was correct.
    I have 3 quarters I'll sell you for a dollar
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  • Lobstercatcher229Lobstercatcher229 Posts: 4,844 Captain
    I have 3 quarters I'll sell you for a dollar

    and you would probably lend me 90k at 5 percent if I gave you the 90K (in fees and other charges):wink
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