Anyone else having appraisal problems?

Question

I bought a property just over 3 months ago for $50K. I put $7K into the property and listed it. I went into contract at $86K to an FHA buyer. There are 5 other strong comps in worse condition with less square footage that sold for the same or more. The highest at $100K. The FHA appraisor came in at $71K as a value for my home. He knows what I paid for the property and roughly what I put in, and I believe this weighed more heavily on his decision than what the market is doing. Any thoughts/advice?

Curt Davis · Answer

Gus,

Next time before you lock up a property to sell make sure you contact an appraiser and see what it willappraise for for the next 90 days. That is what I would do.

Don Levy · Answer

As a retired mortgage broker who was an appraiser for 20 years before that as well as being an investor let me throw my 2 cents in here. 
I agree with you folks that there are a lot of bad appraisers out there. I was a review appraiser and it never ceased to amaze me at some the things the so-called appraisers did.
Any appraiser that pops off with a remark about what your property is worth before he has done an appraisal on it should be shot.
Just because they are FHA appraisers doesn't mean they are right. If you are certain of your facts about some other comps you may be able to challenge the value by doing your own appraisal or getting an independent one. Try to get a copy of the appraisal and have another appraiser look at it.
A lot of owners don't realize that when they buy a property and put new carpet, paint, appliances or whatever that they are just bringing the property up to the standard of the properties around them. Just because you put $20,000 into it doesn't mean its worth that much more. 
Having at least a drive by appraisal might be worth while before you buy if you are having appraisal problems.
Don't be afraid to help the appraiser. Find some good (and I mean good) comps for him. Although most of the comps agents and owners gave me were worthless every once in a while I got some that helped me help the owner.
Appraisers are kind of like lawyers, everybody hates them but they are a necessary evil.
Don

Mark N.A · Answer

I have had terrible experiences with appraisers and just don't trust them.

Few years ago I had an estate house chock full of junk and reeking of animals.  It appraised for $32,000.  I cleaned it up and sold it for $85,000 to a guy who added another bathroom and some paint and got it appraised for $120,000.  Same estate had a riverfront lot overgrown with thick brambles with a junker cottage on it.  Different appraiser said I'd be lucky to get $70,000.  Took me three months but I sold it for $180,000.

Sometimes it's just a roll of the dice with these idiots and whether they got lucky the night before.

Nick Johnson · Answer

You mention other comps.

What were the closing dates on those comps? Are they current?

I wouldn't tell the appriaser any of my business in the future. It's really none of his/her business.

Jim Doine · Answer

Sometimes it's just a roll of the dice with these idiots and whether they got lucky the night before.
                        
             Nc Mark, I couldn't agree with you more.  Jim  :cry:

Josh Green · Answer

maybe you should look into hiring an independent appraiser to look at the property? ofcourse, it won't be valid for the fha loan, but it would atleast give you another estimate.

Anyone else having appraisal problems?

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