Home Selling in 38128>Question Details

Maryperma392, Home Seller in Memphis, TN

had appraisal done on house 87500.00 asking price 1st appra came in 88000.00 fha wanted 2nd appra it came in at 80500.00 of course they used lower pr

Asked by Maryperma392, Memphis, TN Mon Dec 21, 2009

i bought house thru auction for 42500.00 they said because of the lower price i bought it for was one reason they wanted 2nd appra how can they just take lower price why dont they split the price range i paid 2nd appra because buyer didnt have money for it

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As Joe stated, if you are selling ahome 3-6 months after purchase, FHA requires a second appraisl (it used to be required if you were selling within the year)-paid for by the lender as opposed to the borrower.

Additionally, if-as in your case-there is a significant increase in price, they will require a second appraisal if you are selling within a year from purchase.

If, as JO stated, the second appraisal was ordered by the lender because they were just squirmish about the deal, then they have the right to average the two appraised values, but it is not a guideline issue-rather a comfort decision made by the underwriter.

Please realize that one of the reasons they might order a second appraisa is because they didn't like the first one's comps, etc. in which case they are protecting themselves by ordering a second appraisal and might not look at the first on at all. Files get audited from time to time by FHA (even if the loan is not in default) and the underwriter might be questioned if they used a questionable appraisal.

It can never hurt to send in comps to the appraiser through your realtor, but the appraisers might have seen those comps and not used them for a variety of reasons, in which case they will continue to refuse them.

I hope this was helpful.

Good luck.
0 votes Thank Flag Link Mon Dec 21, 2009
Because it's FHA, the government. I don't mean that in a sarcastic way either. FHA is constantly changing the rules. when FHA decides to low ball your appraisel, usually you just have to deal with it. I would advise you to consult a Realtor if you're not already using one. Most would be happy to help, free of charge, by just simply printing off the comparables and doing a market analysis. It only takes about 15 minutes for a Realtor to do that then, if the value of the home is closer to the first appraisel, you can appeal the appraisel. I have done this before and usually the appraser will come up a little, if the comps support it, but not usually more than 5 to 10%.
0 votes Thank Flag Link Mon Dec 21, 2009
Hi Mary,

Joe is correct about the seasoned part (holding a property for a set amount of time before resale can be done). Current appraisals are good for 6 months, though in some cases and in declining markets, four months is the norm. So, if you are trying the resale a house you bought in a short amount of time - your own house could be your worst nightmare, unless you can prove without a shadow of doubt, what you have done to improve the "current" appraisal on the property.

Another thing to take into consideration is that FHA might be satisfied with the appraisal, but the underwriter for the mortgage company is requesting the second one to be done. With tighter lending practices and high foreclosures in the 38128 area - this may just be the thought process in your case.

Jo Shaner
0 votes Thank Flag Link Mon Dec 21, 2009
It probably has something to do with how long you have held the property. According to information I just received from a loan officer, you cannot sell a property at all by FHA if you have not held it for 90 days, and 91-180 days requires a second appraisal like the scenario you described.
Joe Spake
http://spake.com
0 votes Thank Flag Link Mon Dec 21, 2009
They can't split the price due to two different independent appraisers who performed the professional obligatins.

I never in my years of real estate where a 2nd appraisal was ordered. UNLESS you personally had an independent appraisal completed. Many factors play into valuation of a home.

Did you review both published reports, determine if all information is exact including sq. ft. I have seen it where an appraiser missed 500 sq. ft in a home ! what a big difference. Compare how they determined comp'd value, place all information on excel spread sheet you might be able determine answers to your questions.

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
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Lynn911

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0 votes Thank Flag Link Mon Dec 21, 2009
FHA is funny about this. They are really trying to make sure the value is there. How long ago did you buy it for $42,500>?
0 votes Thank Flag Link Mon Dec 21, 2009
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