Posted by kgreen on August 14, 2003 at 07:15:26:
Not all appraisers are unethical! An ethical appraiser will complete a refi report the same way they complete purchase report. Odds are they are both done on the same 1004 or 2055 forms as well.
comps & appraisals - Posted by Anna
Posted by Anna on August 13, 2003 at 18:13:07:
I am getting several owners who are willing to let me lease option there property, however the houses are the same prices as the comps. However, the owners had the house recently refinanced and the the appraisal is $20,000 over any comps in the area. So, would it be safe to buy the home thinking the true comp is what the refinanced appraisal is for? Thanks
Re: comps & appraisals - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on August 14, 2003 at 06:17:46:
Anna---------------
Never pay any attention at all to any appraisals provided by the sellers. Ignore them completely. Don’t look at them, don’t let the seller tell you about them. Stop the seller if they start talking about them. Avoid the morbid curiousity that causes you to listen to the seller or look at any appraisal.
Work only from your own knowledge of the market value of the property. Or, if you don’t know the market value, work with comps to get an estimate of market value.
Now, I hope I have made myself clear to you.
Oh, and you do know to ignore assessor’s market values, too, don’t you? Unless you have investigated carefully and find that the values assigned by that particular office really are accurate. Because virtually always they are not. Again, avoid the morbid curiousy that causes people to look at assessor office numbers purporting to be somehow related to market value of a property. Unless you know that it is accurate.
Good InvestingRon Starr
Re: comps & appraisals - Posted by Jack
Posted by Jack on August 13, 2003 at 18:21:07:
Absolutely not. Refinance appraisals aren’t worth the paper they’re printed on. Use only comps in these cases.
Re: comps & appraisals - Posted by Anna
Posted by Anna on August 13, 2003 at 18:55:45:
Why are the refinace comps so useless? Also,when you have your tenant/buyer close out can they refinance instead of purchasing… Can they use the same kind of useless refinance apppraisals?
Re: comps & appraisals - Posted by qstaff
Posted by qstaff on August 14, 2003 at 24:03:24:
Appraisals and comps are both fairly worthless EXCEPT when refinancing and/or buying a property, but just because the appraiser said, “Oh, yes, 1 million and a half” doesn’t make it so. You can always find paperwork to back up anything and there’s been A LOT of chicanery in real estate, especially with appraisers, lenders, and investors working in cahoots.