We have done an number of deals with B of A and haven't had any issues with appraisal. I would suggest your agent pull comps in the area and have them ready for the appraiser when they come. Hopefully your purchase price is supported by the comps. When you're dealing with out of area appraisers it's best to help them out as much as possible.
I hope you went on to have a good experience with BOA b/c I am having an appraisal issue with them right now. They appraised the home I am trying to purchase at $30K LESS than the agreed upon sale price. I am in NY and the home prices did decline somewhat but the agreed upon price is not way off the charts when put up against comps in the area. Both my BOA loan officer and real estate agent were completely shocked by the value. My loan officer is sending the appraisal for internal review along with additional comps that my realtor sent him so now we have to wait to see if the appraised value will change at all since the seller will not drop the price $30K. The appraiser was sort of from the local area but not close enough to really know the local values I think. Hope you have better luck!
P.S. - I knew someone that had the same issue when their BOA appraisal came back $60K less than their agreed upon price but I still chose to go with them for the same reason you did - the ease at which we were able to get our pre-approval and commitment letter from them.
Your agent might have had a bad experience on another listing and could be a little bitter because the deal was unable to close. I wonder how he came to the conclusion that the appraiser did not know the local market? You should go with the bank that you are the most comfortable with. As a buyer, you want an appraiser that will thoroughly inspect the property and scrutinize the comparables sales in the local market to ensure that the home is worth what you are spending.
Bank of America Home Loans
San Diego, Ca.
There are many problems with appraisal issues nowaday while applying a loan. There is nothing to do with a certain bank. It can happen with any bank. The best way to do is to have market comparables ready if any issue with property value come out. I won't stop using any particular bank just because of appraisal issue.
There are all sorts of appraisal issues right now. Last year the government put in place something called the Home Valuation Code of COnduct (HVCC) that is creating all sorts of problems for appraisers. They are sending out inexperienced and unknowledgable appraisers to value homes with no clue as to the nuances of the towns they enter to appraise and its hurting consumers.
In my opinion, instead of the local agents and brokers "doing what they can" to get values to come in "reasonably" we now have the national banks "tanking" values to manipulate the market to boost their bottom lines and raid the public coffers. (There is no coincidence that they banks paid off TARP obligations while demanding prepaid MI, asking buyers to front more cash, and borrowing at 0% and lending at 5%)
I may be able to help you further. As Erica below mentioned she has had no bad experiences with BofA, it may not have been BofA direct. My company is a bank and a broker. We are a conduit of BofA and offer there programs and pricing with no apprasial issues. We have local apprasiers that handle the inspections. If I can be of assistance please feel free to call me to discuss further.
I had one issue with BofA (I represented seller) Landsafe appraiser coming from Oakland to value a property in Willow Glen. His comps were wrong. It took several attempts to challenge his comps and a second appraisal paid for by the buying client before Landsafe management adjusted the first appraisal.
I am not sure I would avoid BofA but I would ask my agent (most do this anyways) to make sure they provide a comp package to the appraiser on the day of the appraisal (we are allowed to provide information -but not allowed to attempt in anyway to persuade them about value.). Confirm where the appraiser currently works and what is there knowledge of the area.
Bernard Gibbons, Realtor, e-PRO Certified Internet Specialist, DRE License # 01331583
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585
See all homes for sale in Contra Costa and Alameda Counties
Not that I am sticking up for large banks (by ANY means), but consider the fact that was an issue with the appraiser, not B of A....they simply hired that appraiser.
Just something to think about.
There may be another issue here: is the accepted offer way above the market comps? Did your realtor determine fair market value when you wrote the offer? Is that the reason the property isn't appraising for what you offered?
My biggest problem with Bank of America? Short sales! And now, I have a client who is trying to do a loan modification. 5 months later, stll no progress.
But on the purchase side...it depends on your loan officee, how good she is in executing and following up. My loan officer is golden.
I personally never want to use Bank of American for lending again. Appraisal for me was not the issue. They were horrible in the lending process. 2 different experiences both, did not perform well on time lines. One buyer almost lost the home because it took them 60 days and that was pushing them the whole way. Spent sooo much wasted time chasing them down. Easy transaction but they dropped the ball EVERY step of the way! I wanted to pull my hair out and had to fight to get the job done, hated the experience. I could not even talk to the the person responsible for the transaction, email only. And... so if they decided not to email you back, nothing you could do about it. To date, my least favorite bank!
The market is tight right now. Inventory is low and multiple offers are common. Many sellers are now asking that buyers waive appraisal contingency...and getting it. Hence, the appraisal could be the least of your problems.
Work with partners you can trust. Your realtor and your banker. Ask that they work together with you to get the deal done.