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Asked by June Stoneburner, Cassopolis, MI Wed Jul 2, 2008

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NonRealtor, , 23456
Wed Jul 2, 2008
June, you should have sold in 2005-2006 at the peak of the bubble. Guess your neighbors were pretty smart.
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smith3gary, Agent, White Lake, MI
Wed Jul 2, 2008
June, We all wish the 2006 market would return. We are all operating under tightened guidelines which have decreased home values. Many underwriters are being extremely cautious in declining markets.

This will change but will take several months.
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Ronald Flynn, Agent, Sarasota, FL
Wed Jul 2, 2008
I also agree with the other responses. This is a tough market if you need to sell now. What may help is obtaining three apraisals from three licensed appraisers. Basically, you throw out the high and the low appraisals and keep the middle for a basis. Ask the lender if this would be acceptable. This is the practice used by some corporate relo programs for establishing the value of employee homes of employees being transferred at company expense. I personally experienced this practice during my relo's when I worked for a large corporation (AT&T). It sets a fair market value based on current market conditions. This is worth the price of the appraisals when there is a large gap in price and value, and you need to make a financial decision as you are doing. It was alway my luck to be moved in a declining market. Another option is to sub-divide the 22 acres and sell off the parcels. That may require a rezone for density, but could be worth it. Sub-dividing and re-zoning may actually increse the value of the 22 acres on paper. Consult with a local commercial realtor who specializes in deveopment.
Web Reference:
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Aileen Heck, Agent, Brighton, MI
Wed Jul 2, 2008
Hi June,

I have to agree with the other 2 responses. In the last two years we have seen a large shift in our market here in the Michigan Area. I also have this same sitution for I live on 15 acres and my home is very difficult to comp. I have found that many appraisers in that situation have to go a little bit beyond my area to get accurate comps. You may try another lender and there appraiser would be different. I wish the news was better but with the market in Michigan declining the past few years the values have gone done substantially. My personal residence was appraised for 395,000 3 years ago and is now appraised at 310,000 so i do understand. The good news is some of the areas of Michigan we are seeing growth and being removed from the status of the declining market. So, hang in there.
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Missy Caulk, Agent, Saline, MI
Wed Jul 2, 2008
First of all, your neighbors sale 2 years ago, could not be used in todays market. Homes with land, need an experienced appraiser and it sounds like your was. They are harder to comp and require more skill.
Unfortunately you can't do anything at this point but wait for the market to come back. Lenders will only loan you the money on the appraised amount. Remember, they are the ones that are protecting themselves.
If you needed to sell and couldn't get the price of the loan on the amount you wanted to sell for, the bank would be in default.
My only other suggestion would be to contact 2-3 top Realtors and ask them to do a market analysis and see where they would price it.
Wish I could be more encouraging... you could also see if your bank would reduce the interest rate on the current loan, if that is why you are refinancing. You said, "cash out refi" so perhaps you are trying to get rid of the second mortgage.
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Michelle Gor…, Agent, Ada, MI
Wed Jul 2, 2008
Just because they did it 2 years ago, with the current market it does not mean it will happen today. I have a very unique home as well, and have the same problem. With our unstable market right now you will have a hard time getting what you want or need. Most markets have declined in value in the last 2 years. Appraisors are very careful not to over appraise. They can not go with thier "gut" but what is hard core comps in the last 6 months. My appraisor appoligized for mine and said she knew my neighborhood well, and knew I would get a lot more for my home if I went to sell, but could not prove it on paper!
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