Market Conditions in Miami>Question Details

Anna, Other/Just Looking in Miami, FL

What do to if told home cannot be appraised?

Asked by Anna, Miami, FL Wed Feb 4, 2009

I am trying to refinance my home to a fixed rate but have just been told that my home value cannot be appraised because there is nothing to compare it to. It is a 4 year old townhome in an urban area that does not have any townhomes for miles around and the ones that are there are more than 35-40 years old. Plus all of the ones that have been sold recently are all abandoned foreclosures so they are selling for pennies on the dollar. I have been repeatedly told by appraisers that they ethically cannot appraise it without running the risk of being grilled by the bank because it is literally like throwing a dart at a dartboard. What do I do if I cannot get anyone to appraise my home value?

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As an Appraiser, I can say there are always comparables. I don't know how many Appraisers you have talked with, but I would suggest you contact a Certified General Appraiser in your area. Ethics have nothing to do with your situation, more like competence or lack of. The bank may question the report, but if is was done properly (in accordance to regulations) with well documented research and justification, it should be acceptable. Those that are afraid of being "grilled by the bank" most likely are not willing to do the necessary research, or are not competent to do it and justify their work.
2 votes Thank Flag Link Wed Feb 4, 2009
Hello Anna: What a predicament you find yourself in. Based on market value and your financial situation we might be able to find a solution. Give me a call so we can discuss your situation
Ian A. North
Realtor, CDPE
305 467 1881
0 votes Thank Flag Link Sat Jul 4, 2009
Mott - The purpose of an appraisal is NOT to come up with a value TO SUPPORT the loan. That is what BPOs and CMAs do. The purpose of an appraisal is to ASSIST the lender in determining the collateral risk involved. The challenge is finding comparable properties and making justifiable adjustments, such as time adjustments, condition, age, location, amenities, square footage to name a few, along with market data analysis of conditions and trends to come up with a fair market value of a property in a way that complies with regulations and guideline requirements.
0 votes Thank Flag Link Wed Feb 4, 2009

Anything and real estate especially CAN be appraised. The challenge is coming up with a value to support the new loan. Indeed, the current sales won't help much in terms of getting equity- in most cases.

Adjustments can be made for those older townhomes- if there are current decent sales.

The challenge is in finding a competent appraiser that has the experience to complete the appraisal using the data that can be found.

Perhaps the lender is just not willing to take the chance.
0 votes Thank Flag Link Wed Feb 4, 2009
I'm so glad an appraiser weighed in on this question and thumbs up to you Mr. Hintz. That's actually the answer I had in the back of my mind, but since I'm not a licensed appraiser, I didn't want to push it. There always should be a way to make a sound appraisal - of course, keep in mind, it may not be the number you are hoping for - especially in this 'downward trend' market as they are calling it here in Miami. This does sound like a job for an appraiser with MUCH experience. Check out the credentials of those whom you've already spoken with and if they haven't been appraising for years, call someone else!
0 votes Thank Flag Link Wed Feb 4, 2009
Hi Anna,

That is an unusual situation and I'm sure it's causing you a lot of distress. Coincidentally, there is a mortgage broker in my office who is facing a very similar issue regarding getting a new mortgage on a property one of our agents recently sold. They too have been told that the property is 'unappraisable' since there are no other comparable properties anywhere near it. Supposedly they will be getting an answer on that situation tomorrow.

Depending on how much you owe and whatever possible comparables you might be able to come up with, there may be an FHA program which you could refinance into. I guess the properties they used as comps when you originally got your mortgage are the ones which are now in foreclosure. With additional info, maybe the mortgage broker at my office could help you. In the least, I'll be happy to let you know the outcome of their ordeal.

Don't know how many appraisers you've already spoken with, but I do know an appraiser I could get an opinion from, maybe she would have some additional ideas for you...Sorry can't be of more assistance!
0 votes Thank Flag Link Wed Feb 4, 2009
If you need an appraiser in Miami use Lance Campbell, Advanced Appraisals, at 305-458-4564, I use him all the time for my customers--Pam Mayers EWM Realtor 305-216-5864
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0 votes Thank Flag Link Wed Feb 4, 2009
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