independant appraisal?

**mynd66** · 10-11-2008, 07:51 PM

I am a first time buyer working with weichert realtors and after 7-8 months of looking and submitting offers I found one that took. I put an offer in an there was not even a counter and I pretty much got it (short sale). Just going through the process now. I'm kind of new to this and apparently the house was appraised a few days ago but I have not heard anything about it. I am going to talk to the mortgage lady on monday. I was nervous and already asked her what happens if the house gets appraised for less than my offer. She said that would be very unlikely. Now a few people told me that I should get my own independant appraisal because that one might not be looking out for my best interest. I'm not sure what I should do. Should I go in and just tell the mortgage lady that even though she assured me everything was fine I am going out and getting my own? Should I be worried about this?

**mynd66** · 10-11-2008, 07:53 PM

I meant "Independent" I cant spell

**jennettecj** · 10-12-2008, 02:31 PM

The appraisers job is to provide an unbiased opinion of value without the intresest of any one party in mind. It should not matter who employs the appraiser, the end number should be the same as long as the scope of work and value type is the same.You most likely would be wasting your money to order a second appraisal if there is no reason to believe that the appraiser has been biased. Your agent should be famirliar with the market that you are purchasing in. If the agent is comfortable that the offer is good and the appraisal comes back ok, you're probably good.

**mynd66** · 10-12-2008, 08:39 PM

thanks for the insight. What you said makes sense. Thing is too is that since I initially submitted my offer 2 months ago, home prices declined 5-10%. I don't think my offer is a good offer anymore. I am having second thoughts and my agent has been working with me for six months. I want to write her a check so she's not frustrated if I back out.

**jennettecj** · 10-13-2008, 07:37 AM

If you are no longer comfortable with the offer you should try to renegotiate. That is not an easy task with a short sale, but it can be done. Or if prices have declined, go fine something else. I understand that your agent has a lot of time into this deal, but she has a duty to look out for your best interest. I truely hope that she would not put her commision check over your best interest. I'd guess that if this deal does not close, you'll find something else that she can make a commision on!
You can always have another agent run a CMA for you or have a desk top appraisal (a desk top will cost you $50 - $100, but it's cheaper then a full appraisal) done to help ease your mind.

**mynd66** · 10-13-2008, 04:58 PM

I really appreciate the great advice you gave me. I had a sit down with the mortgage broker today and worked out the numbers. Its a 2fam in north NJ. I'll be ok if I rent out one unit but If I have a hard time finding renters I will have to struggle to make payments but I will make them. Plus in this market I am nervous to be buying now. They keep talking about the great depression and home data is negative every month. This house was sold for 575,000 in '06 and was listed for 430 two months ago when I put a 385 offer on it. They took my offer without a counter, its a short sale. I'm not sure if I am even getting at a fair price being that it was sold for 575 at the peak of the housing bubble. I just don't want to get stuck. I am putting about 10% down and thats most of my savings. I'm afraid I might lose it or put myself in a precarious situation being I'm rather inexperienced at this.

**jamesww** · 10-13-2008, 05:13 PM

Originally Posted by mynd66

I really appreciate the great advice you gave me. I had a sit down with the mortgage broker today and worked out the numbers. Its a 2fam in north NJ. I'll be ok if I rent out one unit but If I have a hard time finding renters I will have to struggle to make payments but I will make them. Plus in this market I am nervous to be buying now. They keep talking about the great depression and home data is negative every month. This house was sold for 575,000 in '06 and was listed for 430 two months ago when I put a 385 offer on it. They took my offer without a counter, its a short sale. I'm not sure if I am even getting at a fair price being that it was sold for 575 at the peak of the housing bubble. I just don't want to get stuck. I am putting about 10% down and thats most of my savings. I'm afraid I might lose it or put myself in a precarious situation being I'm rather inexperienced at this.

My calculations come out to be just over 33% off of the peak price. You should know that anything any price decline reported is always annualized which means that they take the percentage of decline for that month and multiply by 12 to come up with an annual rate. This annual rate is then what is reported. It is very confusing for consumers and so I do not think that they should report it in this manner to the public. The 33% decline for your area sounds very reasonable to me.

**mynd66** · 10-18-2008, 10:52 AM

Little update...
I am thinking I got a good deal now. Not only was it sold for 575,000 in 2006 but it was appraised at 440,000. I got it at 385,000. I just don't know what houses they compared it to but I do know the houses they compared it to were sold within the last 3 months. I'll get the appraisal soon. I went on the site zillow.com and the median price of homes in the same town sold within the last six months is 402,000. The house I am closing on has an above average property and is in good condition giving me added value I feel. Yet I have been told that a multi-family investment typically has lesser value since they are bought and sold among investors who naturally pay less. Unfortunatly I don't think I can get the appraisal till after closing. I am also having to pull some teeth trying to get the good faith estimate for the mortgage. I want to see how many junk fees I am paying.