Is your job relocating you or are you moving for a new job?? Some relocation companies and larger employers are assisting in these situations. The Gov't has figured they know best and are making lenders use HVCC on conventional financing. As other agents noted some appraisals are coming in incorrectly. What can happen is an out of town appraiser, will perform an appraisal in a given area using comps within 1 mile that are not true comps, meaning lower quality contruction or using a primarily rental neighborhood comps and or not equal condition.
Brian Frank
916-402-4697
Lyon Real Estate

Grace makes a good point. The new HVCC rules have been rumored to assure that appraisals are less accurate, not more accurate. Homes that are in good condition or in preferable locations within a neighborhood are brought down by nearby fixers and less desirable houses of similar size.

Hello Bugsy and thanks for your post.

Teri, below, provided you with an excellent response regarding your options. I am curious, however, as to who told you that the new process assures banks that the appraisal is accurate. In fact, it might be argued that the new process, enacted on May 1, 2009, called the HVCC or Home Valuation Code of Conduct has been highly suspect in the determination of pricing for homes. In most neighborhoods, the appraisal price has been far below what was expected by all parties because appraisals are now being done by individuals who, often times, have little knowledge of the neighborhood or community (an important factor in understanding the value of the home), limited information about comparables and why some homes are more valuable than others, and must now provide a "trend" for the banker, showing the value of the home in the near future. If home values had been declining in your community, then the appraisal will take this into consideration and trend down the value of your home too.

The best thing to do in this case is to have the buyers request a valuation appeal from their lender. This process requires the appraiser to review his/her data to determine if there were any problems with the appraisal. It is also the time when you and your agent may submit information to the appraiser for his/her consideration. If you find an error in the data used to create the report, now is also the time to point that out. However, be prepared that the appraisal review may not yield positive results.

You can also ask the buyers to consider another lender, as this will then trigger another appraisal to be made for the home. That might help in getting a higher appraisal. Again, keep in mind that in Roseville, as I understand it from the data I've seen, home values have slipped and there may again be a valuation "downward" as the appraiser adds the "trend" to the price.

Finally, as Teri pointed out, since you are moving for a job, you certainly do have a legitimate reason to request that the home be sold short. The buyers need to understand, however, that this will cause their sale to enlongate by as much as 6-8 months, so if they REALLY have to have the $35-40K drop, it will mean changing this to a short sale. Your agent should be explaining this to the buyers, and, in fact, the preliminary report that they are provided will also verify that there is not $35K to give back in the selling price. Talk to your agent's broker if you find that you are still not getting the advice and support that you need.

Good luck!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty

You can argue the banks appraisal if you think it is not accurate. What you need to do is have your Realtor research comparables sales that support your argument on why they value they came in at is too low. Have your Realtor send those comps to the buyers loan officer.

The whole key is recent comparable sales that support your arguement.

Bugsy,
If the property does not appraise at enough to satisfy the new lender ( usually it needs to appraise at least at the new loan amount and enough to maintain the Loan to Value ratio for the loan the buyer is getting)
there are some choices 1. The buyer withdraws 2. The seller drops the price 3. Another appraisal is requested if it is felt the appraisal is incorrect. What are the comps telling you? 4. You do a short sale - a job relocation can qualify as a hardship 5. You find out if your employer will make up the difference due to the relocation
If you agent is not helping go to the Broker and ask for their advice.
Teri Andrews-Murch, Realtor®, SRES®
DRE CA Lic # 01734030
Lyon Real Estate
1900 Grass Valley Highway, Suite 100
Auburn, Ca, 95603
Direct Ph: 530-798-0215 http://www.FoothillHotProperties.com