I may take you up on that. Every day is a new process of “oh…ok…uhhhh let’s add that to the list”.
It will be rewarding for sure!
Thanks. We finally got the closing disclosure for our refi yesterday. Hopefully that means we’ll get to close on Friday. Yay….
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So, update……we got the closing disclosure but the final approval is being held up by……
Drumroll…….
Appraisal problems. The appraisal is “too high”….so who knows how long this is going to take now.
Too high? That’s a new one…that should be good …no??
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Apparently it’s not good. Three issues, two are easy to fix, but the 3rd is that there is a greater than 15% change from a previous appraisal within a year. We had to restart the refi process because the previous appraisal was too low (valued below our tax values when the average actual sales prices are 23% above tax value). All the comps in the area (and used in the previous appraisal) sold for around 13k/ ac….ours was valued at 8.5. I have a property 500ft down the road from my house that was appraised for 13k/ac 4 years ago. Not only that, when we bought the place it was covered thick with mesquite and valued at 7.5/ac and we’ve cleared 70% of it in the last 4 years.
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The appraiser had better have a good reason for the value differences or their method of selection of comparables as these do not seem to match
I can understand the rejection if the values were rapidly increased. Back in the old days of the runaway Saving and Loan before “the” crisis it was not uncommon for a piece of land earmarked for development to be “sold” multiple times in a single fay at ever escalating values.
One that I am familiar with went from $800,000 to $17,000,000 in a single day of transactions flips between a series of “developers” (in Rockwall TX just east of Dallas)
We had an overhead door company that had several million dollars of contracts on these developments… while working on one of the developers helicopter hanger I asked how many of the over 6,000 units his company was building were sold… None.
We sold the overhead doors company and its contracts later that month… a few months later the Saving and Loan crash started… and everyone thought they were innocent (most ended up serving time)
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The values were not rapidly increased….the previous appraiser did a horrendously bad job and came up with a valuation that is cannot be supported with a market analysis. The current appraisal that is “too high” was done by a company that specializes in ranches and acreage in the area. We got the place for a steal because there was foundation issues with the house and the land was so overgrown, but it has been 4 years and we’ve repaired the foundation and cleared the land.
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Just an example of how bad it was……
My place is 28 ac. Comp 1 was a 5 ac property, Comp 2 was 15 ac, and Comp 3 was 16.
Comp 2’s house was 800sf less and 13 ac less. The difference between Comp 2’s sale price and our appraised price was 30k. No way that 13 ac difference is only worth 30k here.
Comp 3’s house was 800 sf bigger, but 12 ac less. The difference between Comp 3’s sale price and our appraisal was comp 3 sold for 50k more.
And Comp 1 with just 5 ac just wasn’t appropriate no matter how you slice it.
New appraisal has:
Comp 1 was 200 sf bigger house and 5 more ac….sale price 415k above our previous appraisal.
Comp 2 was 800 sf bigger house and 10 ac more and sold 480k above our previous appraisal.
Comp 3 was 200 sf smaller house and 7 less acres and sold 250k above our previous appraisal.
Comp 4 had 100sf bigger house and 2 more ac and sold 300k more than our previous appraisal.
When I was buying land to build my farm, I was building a brand new house thru a local well-known top shelf construction company. Effing appraiser used a 20 yr old trailer as comp #1 and comp #2 was a house built in the 60s I believe. Cost me $10k because of that guy.
Hey I think I had the same appraiser. Maybe he moved. I was not a happy camper but after an adjustment on the value ( however low) I did refinance. I can’t wait to get this mortgage paid off!
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I loved the adjustments to the appraisal " Well you have a new house and new roof. The other roof is 20 years old. We will give you a 5K adjustment. " " You have new hardwood floors and the other house has old shag carpeting. We will up your appraisal $2K." And I had to fight for those!
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