I was waiting to see of another broker was going to jump off the cliff.
Let's chat about the Appraisal Fix in play that must be anticipated and planned for
For years I was key in writing product specification and requirements for medical equipment and reagent manufactures and for the service providers who used the equipment. When the RFQ was released, the outcome was certain.
The morale of the story is if you control the rules, you control the outcome!
You must be aware, when a bank grants a mortgage, they still have the same objective that was in place in 2004. That objective is to sell the mortgage to an investor. Don't forget that.
When a bank submits an order for an appraisal, the order WILL stipulate what the appraiser can use for comparables. They often require four(4) types of comparables and impose time limits and additional restricted. Each bank has a different game in play so the 'orders' are not standardized. (That just might be a clue)
This appraisal is then often presented to the banks Appriasal Review Board to insure it meets INVESTOR PARAMETERS! Investors have a predictable pattern of wanting to acquire assets at 60% of value. The house is the securing collateral
If the review board rejects the appraisal, they request additional modified data from the appraiser to force this into conformance. If this happens too often the appraiser will spend a season in the isolation of appraiser purgatory, until the lesson is learned.
The ORDER submitted to the apprising company controls the outcome. The FIX is in. Be aware, if one already know this is the situation, you can make it work to your advantage. If you choose to ignore this reality, your seller takes it on the chin EVERY TIME!
Let me assure you, every citizens honors the service to their country that every Veteran has made. The benefits are well deserved. The economic reality, however, means those purchasing with a VA or FHA loan are at a real disadvantage. I wish it was not so.
Yes, there should be outrage.
But folks continue to steam into the doors of Bank of America, Citi, Chase, Wells Fargo and Never Ever Bank of Clearwater Florida, and experience why they are "F" graded in regards to investment in the community in which they exist. Where's the outrage?
Best of success in acquiring your new home,
Annette Lawrence, Broker/Associate
Remax Realtec Group