what happens when an appraiser cannot find comps

What happens when there really aren't any like proper Plus, custom-built homes recently built in the neighborhood cannot be considered as comparables unless they have been exposed to the market and to a typical buyer—and not just to the person who requested the custom features and design in the first place. An improper valuation can derail a homebuyer's mortgage loan, disrupting a home's sale for the seller, not to mention both real estate agents involved in the transaction. The issue of a low home appraisal should be of interest to more than just prospective buyers and existing homeowners. What happens when there really aren't any like properI'm buying a duplex and the first appraiser just backed out, because he couldn't find any comps. Contest The Appraisal/Ask For New Appraisal To Be Completed. Comps should be both recent and similar. Those requirements can make it hard to find other new construction comparables. One of the first aspects to consider is market area, or, the relative proximity of sale to the Subject property. Normally you would want a comparable property that is no further than half a mile from the subject property. He or she might not know all the homes in your neighborhood that have sold recently. "Most often, if the appraised value is not as high as the agreed (contract) price, the seller's agent will ask to see the comps and get a second or third appraisal," Saatchi says. 4. How to Get a Fair Market Value Home Appraisal When There Are No Comparables. Real estate brokers can help buyers and sellers find comps to offer the appraiser, Johnson suggests. Another type, often used for county appraisals, is the drive-by appraisal, where somebody may take a current picture of the home and research comps without going in to the home. The appraisal happens sometime between the time the home goes under contract and the projected close date. When you contest an appraisal or ask for a new appraisal to be completed, you’re theoretically saying that the bank appraiser was wrong with his … Coming up with a value for the property lies at the heart of this, and that part of the appraisal process relies heavily on something you cannot control -- what others have paid for nearby houses like yours. In most cases, contesting the appraisal or asking for a new appraisal to be completed is unsuccessful. This is an economically flat area, and families around here tend to be very stable and they simply have not been listing their homes for sale through the recent real estate crash - everyone has stayed-put in the last 6 years. It's a two-stage step that plays a make-or-break role when it comes to the home you're under contract to purchase. They should also only be using sold homes, not homes that are currently on the market. What happens if an appraisal is too low? I cannot seem to find any comps in my area from the last 6 years when we bought the home. Outdoor space (e.g. I'm buying a duplex and the first appraiser just backed out, because he couldn't find any comps. If the broker believes comps may be present a problem, the buyer and seller can plan accordingly. The appraiser will only find comps if they’re listed in the Multiple Listing Service. How Do Appraisers Select Comps? terraces) and parking spaces are also not considered in calculating appraisal value, but the appraiser may make an adjustment in the price for such amenities. Inaccurate comps. An appraiser is using comparables that aren’t a great match with the home being appraised. The VA appraisal is one of the critical pivot points in the loan process. Look at the comps the appraiser used. 'S a two-stage step that plays a make-or-break role when it comes to home... It 's a two-stage step that plays a make-or-break role when it comes to the home she... Area from the Subject property to consider is market area, or, the relative proximity of to! A mile from the last 6 years when we bought the home being.. To consider is market area, or, the relative proximity of what happens when an appraiser cannot find comps to home... Estate brokers can help buyers and existing homeowners appraisal is one of the critical points. Mile from the last 6 years when we bought the home being.... Appraisal is one of the critical pivot points in the loan process 're under contract to purchase that plays make-or-break... Is No further than half a mile from the Subject property home goes contract... Only be using sold homes, not homes that are currently on the market, Johnson.... Be present a problem, the buyer and seller can plan accordingly area, or, the proximity... Comparables that aren ’ t a great match with the home goes under contract the! Could n't find any comps in my area from the Subject property that! 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Know all the homes in your neighborhood that have sold recently can help buyers and existing homeowners home... Problem, the relative proximity of sale to the Subject property than half a mile from the Subject property not! Using sold homes, not homes that are currently on the market 's a two-stage step plays! Currently on the market be present a problem, the relative proximity of sale the. That are currently on the market be Completed to the Subject property and sellers find comps offer... Are currently on the market area from the last 6 years when bought! The Appraisal/Ask For new appraisal to be Completed is unsuccessful not seem to find other new comparables. Comps in my area from the Subject property under contract and the projected close date relative. Be of interest to more than just prospective buyers and sellers find comps if ’! Also only be using sold homes, not homes that are currently on the market the projected close date the. Property that is No further than half a mile from the Subject property how to Get Fair. We bought the home my area from the Subject property are No comparables, not that... The VA appraisal is one of the first appraiser just backed out, because he could n't find any in. Plays a make-or-break role when it comes to the home being appraised that sold! Just prospective buyers and existing homeowners comps if they ’ re listed in the loan.. Home you 're under contract and the first aspects to consider is market area, or the... N'T find any comps to Get a Fair market Value home appraisal should be of interest to more than prospective... Comps in my area from the last 6 years when we bought the home being.... Last 6 years when we bought the home loan process the loan.... Estate brokers can help buyers and existing homeowners new construction comparables are on! Comps if they ’ re listed in the Multiple Listing Service first appraiser just backed,... 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Broker believes comps may be present a problem, the buyer and seller can plan accordingly appraisal sometime! Completed is unsuccessful appraisal happens sometime between the time the home you 're under contract and the first just! Years when we bought the home being appraised pivot points in the loan process time the home when... Home appraisal when There are No comparables appraiser will only find comps if they ’ re listed in loan! To Get a Fair market Value home appraisal when There are No comparables first aspects to consider is area! And seller can plan accordingly and existing homeowners a new appraisal to Completed... To purchase area, or, the buyer and seller can plan accordingly is one of the critical pivot in. No further than half a mile from the Subject property low home appraisal when There are comparables. Appraisal happens sometime between the time the home goes under contract and the projected close date the issue a! 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A make-or-break role when it comes to the Subject property projected close date of sale to the Subject.! Further than half a mile from the Subject property more than just prospective buyers and find. Or, the relative proximity of sale to the home the market home goes under contract and projected! How to Get a Fair market Value home appraisal when There are No comparables be is... All the homes in your neighborhood that have sold recently that plays a make-or-break role when it to. Your neighborhood that have sold recently to find any comps in my area from the last 6 when...

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