What am I doing wrong in East Orange - two houses have under appraised?

Asked by Vanessa Anderson, Brooklyn, NY Fri Oct 19, 2012

I have gone to contract with two separate homes, one on the Bloomfield border, and one near Brick Church station. One under appraised by 120K and the other by 40K. I am a first time home buyer with a max budget of 225K. Everytime I find a home, the bank tells me it's not worth what the seller wants, and the seller is shocked and confused. HELP!

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Shanna Rogers’ answer
Shanna Rogers, Agent, Murrieta, CA
Fri Oct 19, 2012
Hi Vanessa,

Hire a Realtor who is willing to do Comparative Market Analysis' (CMAs) on properties you are interested in BEFORE you submit your offer. A CMA will give you the current market value of the property and this is what you should base your offer on, not on list price. When your Realtor does the CMA, make sure they use SOLD properties within a 1 mile radius of the property you are interested in and that have SOLD within the last 3 months.

Good luck.

Shanna Rogers
SR Realty
1 vote
Marsha Bowen…, Agent, Livingston, NJ
Fri Oct 19, 2012
Hi Vanessa,

I hope you are working with a real estate agent that is pulling comps for you before you present an offer. In addition, you should speak to your mortgage contact to find out if the appraisal company they are using is local. Some mortgage companies are using appraisers that do not have knowledge of the area and do not present the best appraisals. It's also possible the sellers have overpriced their homes too.

Good luck!
0 votes
Jamilla Walk…, Agent, Edison, NJ
Fri Oct 19, 2012
I am a local Realtor call me I can assist 973 819 2506
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Fri Oct 19, 2012
Are these homes listed by a Realtor in he local MLS or are you finding them FSBO? Are you working with a Realtor to help find you homes to look at and are they guiding you. Sellers can and do ask for more than their homes are worth sometimes, when they appraise for less than the offered price the seller can reduce the sale amount, but I am guessing they don't want to and that should tell you they are not aware of what the homes are really worth these days.
0 votes
I have had two separate realtors. the first house was not on MLS, but the second home was. The seller bought the home for 5K less than it appraised for, but put 50K in in renovations, updates, etc. However, the FHA appraiser says price/sq ft. trumps upgrades, and that for the area the price should be less than $200 per square foot
Flag Fri Oct 19, 2012
Alex Kushnir, Agent, Monmouth, IL
Fri Oct 19, 2012

Do you work with buyer's agent? Your agent should be able to advise you what will happen. This way you can decide to bid or move on.
0 votes
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