Kelly Welch, Both Buyer and Seller in 29588

we just build a custom home on a lake in S. Myrtle Beach and moved in this year in January. I just had it

Asked by Kelly Welch, 29588 Fri Nov 9, 2007

appraised to do a refinance and it appraised at $380K when our actual cost last year was $440K and the initial appraisal a year ago was $480K. Have things gotten that bad in Myrtle Beach or did we just get a bad appraisal? I am VERY concerned.

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6
Kelly,

Things have really gotten that bad nationally.
Web Reference: http://www.myrtle-beach.com
0 votes Thank Flag Link Sat Jan 31, 2009
I have found that most recent appraisals (last few months) are coming in very close to purchase price. They are careful not to overinflate the price of the homes due to the fallout in other markets. Myrtle Beach area is still in decent shape compared to other markets. The lure of the beach and ocean isn't going away!
Web Reference: http://www.mbcondopro.com/
0 votes Thank Flag Link Sun Dec 9, 2007
Why are you refinancing so soon? In the past banks have always been in the business of lending money so the appraisals tended to be generous. Appraisers are being watched with a magnifying glass these days and really have to be aware of what is going on in the market. Additionally, I imagine the initial appraisal of $480 was based upon the estimated completion appraisal. Thank goodness your actual was less or your "on paper" appraisal hit would have been much greater. I wouldn't panic over your current appraisal unless you are having financial problems. If you took the time and energy to build a custom home that was obviously your "dream" at the time, my suggestion would be to enjoy every moment. The market should show signs of improvement and appreciation before you sell. The ony concern you should have at this point is if you have to sell. Other than that, enjoy your home!
0 votes Thank Flag Link Sat Nov 17, 2007
That sounds about right. Check out my blog for 2007 statistics for the Myrtle Beach market. It's dismal at best! Also read the blog titled: "Yes, Mr. Seller, You should have taken $ 175,000 !!!"
The good part is that you don't have to sell, and the market will eventually swing up again (God does not make any more BEACH...) Many are not in as good of a position as you, and are upside down (they owe $ 440, and the home is worth only $ 380, so the only remedy they have is to lose the difference, foreclose, or ask the lender to allow a short sale. Either way, it's painful! Good luck, Kelly!
0 votes Thank Flag Link Fri Nov 16, 2007
Hi Kelly,

Appraisers are being very cautious these days. They are very careful not to overinflate the price of the homes due to the fallout in the subprime market. The prices in many markets have fallen drastically; I don't think we have had a major correction in SC.

It might be possible that the initial appraisal was incorrect. Who ordered the appraisal last year? Was the appraisal this year done by the same appraiser?

I am sorry about your current appraisal. You could always have another one done, but I seriously doubt that they will be $100,000 more than the one you just had done.
0 votes Thank Flag Link Fri Nov 9, 2007
Where in S. Myrtle Beach is your home? You can email me privately at Kathy@KathyRukat.com if you do not want to reveal that information publicly. Thanks.
Kathy Rukat
Web Reference: http://www.KathyRukat.com
0 votes Thank Flag Link Fri Nov 9, 2007
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