Home Buying in Fremont>Question Details

Newtomarket, Home Owner in Fremont, CA

For new home should I hire a third party for appraisal or preferred banks appraisal is good enough ?

Asked by Newtomarket, Fremont, CA Tue Mar 22, 2011

The property in concern is a bmr which is sold as regular sale since they could not find any one. New home. Similar bigger homes had price/sq ft around 427. This is smaller with price/sq ft of 510. The remaining smaller homes are *all* bmr.
Related post: http://www.trulia.com/voices/Home_Buying/For_new_homes_do_pe…

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I would suggest that you "trust but verify". At the end of the day you are the person paying for the home at the price you chose to offer regardless of the appraiser's "opinion" of value.

I recommend that you review the appraisal report to see if the analysis makes sense to you and to verify that the appraiser used appropriate homes as comparables. I also recommend that you have the lender specify if they use an appraisal management company of if they have an in-house appraiser panel. If a management company is used this company will likely strictly adhere to the Home Valuation Code of Conduct and be providing an unbiased, objective opinion of value. If an in-house panel is used, the same Code of Conduct should be adhered to but, in my opinion, an appraiser on such a panel has a greater incentive to hit a target value (rather than an unbiased opinion of value) simply because they are hired directly by the lender.

Frank@MortgageFinancePro.com
(415) 475-9309 http://www.MortgageFinancePro.com
California Dept. of Real Estate #: 01371776
NMLS #: 271709
0 votes Thank Flag Link Tue Mar 22, 2011
If you are financing the property you will need to have an appraisal completed and ordered through the lender which will be arranging the financing. You can not submit an appraisal you order on your own to a lender for use in approving your financing application.

Frank@MortgageFinancePro.com
(415) 475-9309
http://www.MortgageFinancePro.com
California Dept. of Real Estate #: 01371776
NMLS #: 271709
1 vote Thank Flag Link Tue Mar 22, 2011
Hi Frank, my question is can I trust the preferred banks appraiser ? Since there is not a clean relation ship between home builder -> preferred bank -> preferred banks appraiser
0 votes Thank Flag Link Tue Mar 22, 2011
if you are buying from a builder and using their lenders then you should hire your own appraiser but if the sale is an arm's length transaction then you should be ok. also check with your agent that is not affiliated with the seller and they should be able to give you an idea of how much the property is worth.
0 votes Thank Flag Link Tue Mar 22, 2011
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