Real Estate Views from St Pete

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Appraisal Problems - Take 2

Recently I described a problem I was having with the appraisal on one of my listings currently under contract. Today the buyer's lender called me to say that the second appraiser, one located here in St Pete, also declined to do the appraisal because he would not be able to come up to the purchase price. This morning the sellers had an appraiser come out to do an appraisal so that they could determine what to do if this transaction does not close. That appraiser did not seem to have a problem with finding comparable waterfront homes in other neighborhoods. We'll see how that comes out.

Sharon Simms, Real Estate Agent selling homes in St. Petersburg, Florida, the Gulf Beaches and the Tampa Bay area. 

10 comments • Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS • September 17 2007 07:49PM

Comments

Sharon I had an appraisal issue on a listing not too long ago.  They can really be a bear but mine was a real learning experience.  Hang in there and I wish you and your clients all the best!
Posted by Huntsville Alabama Real Estate Agent, Kimberly Grant (Exit Leon Crawford Realty) over 4 years ago
Sharon - More and more properties are not appraising which is an indication that there is tightening in the appraisal industry just like that of the mortgage industry.  I hope yours will work out.
Posted by Jennifer Fivelsdal Rhinebeck Real Estate (Serving Dutchess| Columbia|Ulster Ctys (LIC. R.E. Broker JFIVE Home Realty LLC ) over 4 years ago

I have run into tight appraisals with some of the VA appraisers.  That has been going on even during the hottest time in the market.

Posted by Randy L. Prothero - Hawaii REALTOR® (808) 384-5645 (Century 21 Liberty Homes ) over 4 years ago

Jennifer - it definitely is showing a tightening. In the past we were always able to tell which contracts might have an appraisal problem - not any longer.

Randy - There have been FHA and VA appraisal issues for some time - this is the first problem we've seen with great home in great neighborhood at a great sales price! 

Posted by Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS (ALVA International, Inc.) over 4 years ago
I think this is only the start of a rush of these appraisal issues. Appraisers have it tough now too. I'm sure they are getting a lot of pressure from the banks and mortgage companies.
Posted by Century 21 First Realty over 4 years ago
Joe - not only that, some of them aren't getting enough appraisal orders to stay in business.
Posted by Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS (ALVA International, Inc.) over 4 years ago
I have a feeling this has to do with the buyer's agent more than with the appraiser.  People will use all kinds of tactics, but it doesn't seem right to me.
Posted by Rick & Ines - Miami Beach Real Estate (Majestic Properties) over 4 years ago
Ines - can't be that - I have both sides of the transaction. Both the buyer and his mortgage broker (who is a good friend and also next door neighbor in Orlando - this will be a second or weekend home, where he can keep his boat on a lift behind his house)  are trying to figure out how to make this work. I sent the appraisal done by the seller-chosen appraiser to the mortgage broker. He was disappointed that there weren't more than 3 comps since they were not in the neighborhood and/or within 6 months. I then sent supplementary comments to the MB along with comments on the 3 properties I would have chosen and why, and suggested he run the additionals by his appraisers and/or the underwriter. Lo and behold, I got a call from Appraiser #2 wanting to set a time to see the property. I met him at the property yesterday afternoon, gave him lots of data in a package. We'll see on Monday whether there is any progress.
Posted by Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS (ALVA International, Inc.) over 4 years ago
oooops!  I guess it's not the buyer's agent Sharon LOL! - We had something similar happen with a Lanai - there were no comparable sales at all and no appraiser wanted to do it.  Good Luck on Monday, I hope everything works out.
Posted by Rick & Ines - Miami Beach Real Estate (Majestic Properties) over 4 years ago
LOL! I'll let you know, Ines.
Posted by Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS (ALVA International, Inc.) over 4 years ago

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