Posted by Ben on February 03, 2000 at 07:18:32:
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NJ Dave pulls through! - Posted by Ben
Posted by Ben on February 02, 2000 at 19:34:37:
Nearly got my head handed to me. About to close a hard money loan based almost solely on two appraisals looking VERY good. Surprise! NJ Dave’s comps and property inspection reveal a value of less than HALF appraised value. Like they say, there are liars, darn liars and then there are appraisers. Thanks again DAVE!
Re: Just Common Cents! - Posted by NJDave
Posted by NJDave on February 03, 2000 at 09:41:42:
One of the reasons that you have remained successful in the real estate/finance business is that you do not make impetuous, emotional decisions, but instead make informed, business decisions. The fact that you (yourself an attorney) have your own attorney reviewing each deal, and question each appraisal insures you reduce potential exposure and avoid having your head ‘handed’ to you.
Due to the Purchaser’s URGENCY to close the deal (within 24 hours, and offer to pay high interest and lotsa points) there was precious little time to adequately research the property. Readily available information could not be (to my satisfaction)confirmed. I pulled neighborhood ‘solds’ on the appraiser’s three comps. Obviously the appraiser choose comps from the high end and in my opinion, 2 of the selected comps did not accurately reflect the subject’s condition.
That disparity begged a field inspection of the Subject. The field inspection failed to confirm the appraiser’s opinion of value.
To be fair, you were not the Appraiser’s Client. The Purchaser was. We were not privy to the PURPOSE of the appraisal, and we don’t know if the appraisal was doctored in any way before it was FAXed to you. White-Out can be purchased anywhere!
For instance, the appraisal’s objective could have been to project the subject’s fair market value in an improved or renovated condition in an ideal market. Maybe THAT (in an improved condition) had been whited-out and replaced with “AS-IS” condition.
In the future you should insist on original, certified appraisals.
Thanks for your kind words, Ben. All in a day’s work. Just wait until you get my bill! (LOL)
NJDave
Re: NJ Dave pulls through! - Posted by Chris (FL)
Posted by Chris (FL) on February 02, 2000 at 22:07:43:
Is there anything else you’d like to bring up about this potential FUBAR deal that we can learn from? I’m very interested in what the sharks are pulling out there.