My wife an I are planning on a gift of equity in buying a house from her parents. Does the house get a fair assessment when appraising for this sale?

Asked by Sicsense, 11793 Tue Mar 1, 2011

Help the community by answering this question:

+ web reference
Web reference:

Answers

7
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Sun Aug 11, 2013
Absolutely! The property will be appraised the same regardless of having a gift of equity or not. Gift of equity is great in that it'll offset any or all money you'd need for downpayment and closing costs, depending on how much equity is available. You do not necessarily need 20% of the equity based on the contract price, as long as the loan amount is 80% of the appraised value, you'll be able to waive the need for mortgage insurance. The contract sales price is not going ot necessarily be the same as the appraised value, as appraisals is done after the sales contract is executed.

What I would do is speak to our appraisal management company and have them get a ballpark figure from their appraisers in rotation so that I can give all parties involved a good idea of what the true value is. This way the deal gets structured the right way from the very start. If you need a reliable Loan Officer, I am always available to meet face-to-face in our Woodbury office. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes
, ,
Mon Jul 8, 2013
I agree with all the answers/information below that the home would be appraised at a fair market value based upon the sales comparison approach for the specific area. Depending on the amount of equity in the property you would most likely want to have the financing structured with the financed amount equal to or less then 80% of the fair market value to avoid having to pay monthly mortgage insurance. In a NY state purchase transaction the property value is utilized for determining wether or not the buyer would pay monthly MI and not the sales price.
0 votes
Frank Failla, Agent, Garden City, NY
Mon Mar 25, 2013
When you receive a gift of equity, you would have the house appraised to determine fair market value. Assuming the price of the house is set at the appraisal price, the amount of your gift would be deducted, and the remainder would be your mortgage price. Please keep in mind that you will have closing costs as well.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Mar 1, 2011
Yes you will get a fair assessment-- it will appraise for current market value, no matter the form of payment.
0 votes
Arlynn B. Pa…, Agent, Roslyn Heights, NY
Tue Mar 1, 2011
As said below - YES! You will get an appraisal for the Fair Market Value of the home which will have no bearing on what you are paying for it. This appraisal will be based on the comparable homes in the neighborhood that have sold within the past 6 months.

Good Luck on your new home!

Arlynn

Arlynn B. Palmer, ESQ, SRES, CBR, CMS, CNS
Associate Broker, REALTOR
Coldwell Banker Claire Sobel
Direct: (516)410-3594
Office: (516)621-6300 x 205
Email: Arlynn@ArlynnPalmer.com
Web Reference:  http://www.ArlynnPalmer.com
0 votes
Allen Bauman, Agent, New York, NY
Tue Mar 1, 2011
Yes! If you are going to get an appraisal for the current fair market value of the house then that is what the appraiser will give you. The terms of your sale or transfer of the property do not have any bearing on value. You can be getting a good deal, a fair deal or a bad deal. The value remains the same. The value is determined by factors in the market and not necessarily in your contract unless their are deed restrictions specified.

Allen Bauman
Century21 Yve
Licensed R.E. Agent
NYS Certified Residential Appraiser
516-791-3846
allen.bauman@gmail.com
0 votes
Century 21 P…, Agent, Massapequa, NY
Tue Mar 1, 2011
The property is going to appraise for what the comparable sales idicated that it is worth. What you plan to do with it or the type of financing you are applying for does not have a bearing on the amout the houses is appraised for. If you you need clarification or additional answers let me know.

Andy Yakubovsky

516-826-2000
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more