Trouble finding comps for home sale?

**ronny** · 07-30-2008, 09:06 PM

Hello All,

Hope someone can help with my questions.

I'm in the final hours of closing on a home sale in TN and the appraisal has not been completed because the appraiser is having a problem finding comparable home sales.

I'm purchasing a foreclosure that has a main (3/1) and guest house (2/1) on the property. This property sold in 1999 this way without any problem and the main house was always described as three bedrooms.

The first problem came up when the lender stated a mortgage wouldn't be given for two houses on one property and there had to be separate deeds for each house. This was ok at first. The issue now is the main house at some point prior to or after 1999 had a wall taken out, turning two bedrooms into one. There is a room next to the kitchen (no closet) that previous deeds and owners were describing as a bedroom. The appraiser now is not counting as a bedroom. This makes his description of the home one bedroom. Since they are treating the guest house as non existent, they need to use one bedroom comps. That is where the problem comes in.

Closing is scheduled for tomorrow and no appraisal. I asked the rep for the lender "what if the appraiser doesn't ever find any comps, what then??" She has not returned my last call.

Has anyone else ever been through this? Are there any alternatives if there just aren't any one bedroom comps? If this sale does not close, am I entitled to a refund for the appraisal?

I would appreciate any input.

**Dallas Broker** · 07-31-2008, 12:10 PM

talk about waiting until the last minute, sounds like lender is not on top of their game. Find another appraisal who can make adjustments. I've never heard of an appraiser giving refund, but you may be able to recover from lender. Bottom line, appraiser will either find the value or not. If the appraiser is unable to find value for amount of loan, you should consider other options as long as you know the value is there.

**DonovanK** · 08-05-2008, 08:44 PM

Appraisers have been put through the ringer for getting bullied into finding values on properties over the last few years. One of the major reasons for the housing bubble was this very reason. You may have trouble finding a appraiser that will do this for you, but it worth the shot, since you have $$$ on the line and you never know what another lender might accept for the appraised value.

**Greg** · 08-06-2008, 05:24 AM

If the property does not appraise then the seller/bank will have to reevaluate their price. If the appraisal come in low you might be able to renegotiate the purchase price.

**probate_attorney** · 08-06-2008, 05:47 AM

How hard would it be to install a small closet (before or after you buy)?

**ronny** · 08-15-2008, 11:48 AM

Thanks to all for advice.

Well, the lender decided not to finance the loan because of the appraisal and I was back at square one.

They (lender) was not helpful at all. I suggested installing a closet at my expense but was never given a response to this. My realtor and I think there is something else underhanded going on. There was a lot of communication going on between the lender, appraiser, and listing agent. I was paying the lender fees and appraiser but communicating with them was like pulling teeth.
It's my speculation that there is a cash offer waiting to be made on the property. I definitely could not go back to the seller/bank with demands because it seems they were already looking to terminate the contract. The home is priced low enough to bring in a cash offer (which is what the seller wanted in the beginning).
I have moved on with another broker and had an appraisal done without a problem. Hopefully will be able to close on Tuesday.

**MundoLuxe.com** · 08-15-2008, 07:49 PM

Hello. I know this is a little late to reply to your need (but you'll have to forgive me! I just joined the forum today!). So here's my 2 cents:

Cent 1, lack of comps contributes to value just as much as good comps, and if nothing's selling..... that should be taken into consideration.

Cent 2, when doing comps it's BEST to compare apples to apples.... but when there just aren't any apples, sometimes applesauce is better than nothing at all.... In this case, you could have compared the home to a 2 bedroom of similar square footage..... Comps are NEVER perfect. NEVER. But you have to find the best of what you can find.

Good luck with the home, and sorry again for being a late comer!!

-Kara

**AgentsBuddy** · 08-17-2008, 11:29 AM

I used a VA Loan Cert and had to use a VA appraiser. My house was valued too high, and now Im stuck trying to deal with waiting out it to fill it up with some equity. Although my house was the nicest filled with c-tile, granite, rock not brick, nice crown moulding, jacuzzi tub, and an oversized patio.. When trying to sell it, it didnt matter. Only the SF mattered. So I thank the guy for coming in what the Community was asking, but it bit me in the a** at the same time.

**stan Jensen** · 08-17-2008, 06:15 PM

The Dallas Realtor has it right, find a lender who knows his stuff . . .

**ronny** · 08-19-2008, 05:44 PM

Kara.....thank you.

"Cent 2, when doing comps it's BEST to compare apples to apples.... but when there just aren't any apples, sometimes applesauce is better than nothing at all...."

This is what my realtor was saying the entire time. The home is over 1400 SF, they should have been able to find something. The problem was....the lender had to use one of their approved appraisers from a list (they said). If I could have obtained an appraiser on my own, we probably would be done. I will never ever use this lender in the future.

We're scheduled for closing this week.........I'm keeping my fingers crossed.

Thanks to all.