Help, Appraisal wasn't ordered - what do we do now?

Help, Appraisal wasn't ordered - what do we do now?

Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes

I really need suggestions, as I have never dealt with something like this before.  Appraisals in our county generally take over a month once scheduled.  Therefore, most escrow times here are set for about 60 days.  We are under contract for the house we are selling.  All repairs, etc., were done and signed off on and closing date is 12/15th.  We've been sitting waiting for weeks for the appraisal.  Come to find out on Monday that none was ever ordered by the buyer's side.  There was some confusion by the buyers on ordering it, which I clearly chalk up to a major realtor dropped-ball.  Their realtor left it to buyers to order, and they didn't understand the importance of getting it ordered immediately.  I asked for an expedited appraisal, which they are apparently "working towards".  But still hinting that the closing date would have to be in January.

This causes a hardship for us.  First, it's well over $100 for every month in holding costs.  Second, we needed that income to be in 2017 and were counting on it.  Granted, we knew something could happen to push it into 2018 possibly, but we didn't expect a realtor flub-up.  We also have unpaid bills racking up interest charges.

I am getting the idea that we just need to lump it.  I also have zero experience with an expedited appraisal, and surely this means that should be very soon???  Is it fair for us to pay the entire downside for this with just an "oops".  What do people do in a situation like this to make it right.  I don't expect it to be a lot, I just feel there should be an effort made by the realtors.  For example, we haven't yet done a bug treatment for $250 that we were holding off on until the appraiser had come and gone.  Would it be a lot to ask for them to kick in half now for that item?  Am I just overreacting due to our own financial pressures?  We worked hard and in good faith to do everything expected of us on our side.  Feedback and insight would be greatly appreciated.  We don't want to kill the deal, but feel like we're getting the short end of the stick.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
8y

Neither the buyer nor the agents order appraisals. They are ordered by the lender. This is part of the reason why you vet the lender during the offer process.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y

    Neither the buyer nor the agents order appraisals. They are ordered by the lender. This is part of the reason why you vet the lender during the offer process.

  • Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    8y

    @Russell Brazil, the lender is Quicken, for whatever it's worth.  That was specifically what I was told by my realtor - but more to the point, the bottom line was the buyers decided to hold up the appraisal because they wanted to know the repairs were done, this is what their realtor has come to find out just now.  I chalk this up mostly to a realtor(s) dropped ball because I assume the buyers are inexperienced (they're young).The bottom line is both realtors just figured this out.  I would still love to get feedback on how I should (or should not) handle this.

  • Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    8y

    Also, is there such a thing then as an expedited appraisal?  I'm not understanding why it is still sounding like it will take them a long time to close.

  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    Your problem is with Quicken.... and now you see why. If it was me, I'd get a list (if you even can?) form Quicken and figure out who their approved appraisers are. Then call every single one until you get someone to do it ASAP.... squeaky wheel gets the grease.

  • Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    8y

    Just to reiterate, my realtor said she spoke with the buyer's realtor, and was told specifically that the buyer didn't want to pay for the appraisal until repairs were done, and therefore none was ordered.

  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y
    Originally posted by @Kathryn Bowden:

    Just to reiterate, my realtor said she spoke with the buyer's realtor, and was told specifically that the buyer didn't want to pay for the appraisal until repairs were done, and therefore none was ordered.

     This makes zero sense and shows how misinformed Quicken can be..... if appraisals take as long as you say to get then a local loan officer would know this. Then they'd schedule one for after repairs were complete. When the buyers objected they'd explain why.... it should be done this way to prevent delays.

    For what it's worth I just had my loan officer fight for me on 2 appraisals just this week. We got them pushed through and taken care off.... Saved me headache and money... and it's a short close (30 day) with about a week left so extra pressure haha.

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    I’ve never heard anything good about quicken. I’d simply refuse offers from people using them as a lender, going forward
  • Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    8y

    @Kathryn Bowden if they are using the term expedited appraisal, maybe try and offer to pay an additional fee to have one done. I know it is crazy to have to PAY money for someone elses mistake. With that said, if waiting until 2018 will cost you $5000 in holding, taxes, etc... paying $500 now to expedite an appraisal would make a lot of sense (assuming this works and there can be an enforceable contract put in place to be certain things close as needed).

    Just throwing ideas out there.

  • Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    8y

    @Matt K., hmm, interesting.  Yes, they also gave the impression that maybe the loan officer wasn't so swift.  There is now apparently a new one handling their loan.  :-(

  • Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    8y

    Good to know about Quicken - wish I knew earlier.  :-\  And yes, good info from our realtor would have helped.  One - [I was interrupted on a call on this one, and accidentally posted.  I literally can't remember what I was saying in that sentence!]

  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y
    Originally posted by @Caleb Heimsoth:

    I’ve never heard anything good about quicken. I’d simply refuse offers from people using them as a lender, going forward

     Generally speaking the good things are them quoting misinformation to people lol. Then those people are like I got this (insert owner occupied rates/terms) for my investment property. Then when it comes closing time... woops mistake is caught and surprise, you're at normal terms or it's too late and you're going to lose the deal.

    They have their place, but it's best served between regular home buyers/sellers.

  • Gordon CuffePro Member
    Investor · Roseville, CA · Member since 2009 · 1k+ posts · 587 votes
    8y

    quicken is terrible to work with as you deal with someone far away. With that said , only the loan officer can order the appraisal. He can order an expedited appraisal with the buyers paying a little more for that service. If the buyers dont want to pay the extra fee, ask the buyers agent to pay it in order to save the deal. It is not a big fee. 

  • Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    8y

    @Gordon Cuffe, yes those were my thoughts exactly.  Thanks.

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    8y
    Originally posted by @Kathryn Bowden:

    Just to reiterate, my realtor said she spoke with the buyer's realtor, and was told specifically that the buyer didn't want to pay for the appraisal until repairs were done, and therefore none was ordered.

    Horrible behavior on the part of the buyers.  Amateurs.  

    At some point you will be asked to sign an extension.  You have three choices.  One is you could just sign and deal with the delays.  It might actually work in your favor, depending on what's in this new tax bill.  Or you could refuse to sign, let the deal fall apart and try to keep the earnest money.  Keeping earnest money isn't easy.  Or, you could request some sort of compensation for the delay.

    The reality is that closings often get delayed and its just part of the game you signed up for when selling.  If this deal falls apart you're probably looking at an even longer delay.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    8y

    I know nothing about appraisals in Oregon, so take my response for what it's worth. 

    Here in Atlanta an appraisal takes a week, so, unless Oregon has some special requirements, the actual work should not take longer. So, I'd assume that the long time is due to being put onto a waiting list, because the appraisers are so busy. 

    If there's a waiting list, then I'd suspect that extra money can put you to the front of the line. And since it's the buyer's side that created the problem, they should pay for that. 

    Is that a personal residence? If so then you better do whatever you can to close by Dec. 31st, as you'd otherwise might have problems with the personal tax free profit thingy under this new tax plan.

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    8y

    @Michaela G. has a good point.  If this is your residence and you're counting on using the two of five years section to exclude gains from taxes, and you've lived there more than two years but less than five then you better move heaven and earth to close this year.

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y

    @Jon Holdman @Michaela G. each of the bills has an exemption for properties under contract before January 1 for the section 121 exemption from capital gains.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    8y

    @Russell Brazil , thanks, that's good to know.  Is there a limitation as to when it has to be closed by? 

    Reason is that I will have been in my house 2 years end of Feb 2018 and I had planned to sell it, but this tax bill put a wrinkle into that. 

    So, what if I had a contract on it before Jan 1st, but not actually close until beginning of March. Would that still count?

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y
    Originally posted by @Michaela G.:

    @Russell Brazil , thanks, that's good to know.  Is there a limitation as to when it has to be closed by? 

    Reason is that I will have been in my house 2 years end of Feb 2018 and I had planned to sell it, but this tax bill put a wrinkle into that. 

    So, what if I had a contract on it before Jan 1st, but not actually close until beginning of March. Would that still count?

     I dont believe there is a time limit in the bill, but I am not positive.

  • Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    8y

    @Russell Brazil, you may have just made my day.  Actually, no this is not a primary residence, so it would not apply in this case.  However, simultaneously we are selling our primary residence that we have been in for 4.5 years.  We are under contract, but we are not closing until late January.  Do you have a link for that exemption by chance?    Thanks again.

  • Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    8y

    @Michaela G., yes, unfortunately a waiting list.  Nobody seems to understand why they have about three appraisers for our county.  But it's just the way it is.  And thanks for bringing up that new tax rule, because it applies to our primary residence that we are also under contract with.  You can't imagine the relief to hear that it sounds like there's an exemption in our case.  Boy, sure hope so.

  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    I'm willing to bet the waiting list is on the Quicken side.... wonder if you could get a local bank to fund it quicker? I have a 50 state lender I can ask if you want a referral for your buyers. No idea if this is possible, but maybe.

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y
    Originally posted by @Kathryn Bowden:

    @Michaela G., yes, unfortunately a waiting list.  Nobody seems to understand why they have about three appraisers for our county.  But it's just the way it is.  And thanks for bringing up that new tax rule, because it applies to our primary residence that we are also under contract with.  You can't imagine the relief to hear that it sounds like there's an exemption in our case.  Boy, sure hope so.

     This is a link to the Senate version of the bill. It is on page 82. Now if you were to take the time to read through the 472 page bill, you would be far ahead of our elected leaders, who did not read it before they voted on it, even as they received this version of the bill only about 30 minutes before they voted on it.

    https://www.finance.senate.gov/imo/media/doc/12.2....

    ‘‘(2) EXCEPTION FOR BINDING CONTRACTS.— 6 Paragraph (1) shall not apply to any sale or ex- 7 change with respect to which there was a written 8 binding contract in effect before January 1, 2018, and 9 at all times thereafter before the sale or exchange.’’.

    Remember though, both versions of this bill are being reconciled in a conference committee, and then when there is a single bill, that will be voted on. So nothing is set in stone until A) We have 1 single bill, B) both the senate and house pass that bill and C) the president signs it into law.  

  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    You also will want to get ahead of this ASAP because lot of places have reduced stuff for the holidays that are fast approaching. 

  • Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    8y

    Wow, super helpful.  Thanks @Russell Brazil.  I will stay up into the wee hours to read the whole thing. :-)  One other question - so it sounds like for my other property that I originally posted here about and we've owned for over one year, there should be no tax change to be concerned with, at least in terms of whether we sold it say 12/31/2017 vs. 1/2/2018.  Would you say that's correct?

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