patrick.net

How can this be when I can build it new for $60/sq with profit?

I can build you a house for $30 per square foot with profit.. but it will fall apart in 5 years... :)

Cheap is cheap...

Cautious1 2012 Mar 2, 11:30am

My lender and the seller became good friends! Seller claims he has a buyer with cash ($300K) but wants for me to have the house! What a nice guy.

You did right to walk. He "has another buyer?" with "cash" in fist? Right. What a liar.

elliemae 2012 Mar 4, 1:46pm

Realtors Are Liars.

What do you mean? You've never said this before.

woppa 2012 Mar 4, 1:52pm

Come to NYC and build me a brand new house for 60/sf. I will sign on the dotted line.

LAO 2012 Mar 4, 1:59pm

LAO says

Realtors Are Liars says

How can this be when I can build it new for $60/sq with profit?

I can build you a house for $30 per square foot with profit.. but it will fall apart in 5 years... :)

Cheap is cheap...

You couldn't build a doghouse at any price if I gave you 6 months to do it.

The fact remains that we build every single day for $60/sq and make money doing it.

Realtors Are Liars.

Ok, i saw a vacant lot in my neighborhood for $140k... Its backed up against a hillside but its almost half an acre... 1/4 flat land.

Come build a house on it for $60 per sq ft... Forclosed shacks are still selling for $300k on smaller lots. You could make a killing buying this lot and building a 1700 sq ft $100k "hi quality" new build there. Probably could get $450k easy... Based on comps.. Put ur money where your mouth is!

LAO 2012 Mar 4, 2:01pm

woppa says

Come to NYC and build me a brand new house for 60/sf. I will sign on the dotted line.

He is talking out his ass.... He would plop a mobile home down in the lot and call it a new build.

13 thomas.wong1986 2012 Mar 4, 2:07pm

The Lender told me that If I pay more for this house it will appreciate faster that than the other because of the upgrades!

In another words, new shiny homes with all the upgrades didnt fall in price. But many infact did!. Did they throw in a new car.. well that didnt help either..prices still fell.

leo707 2012 Mar 5, 2:35am

My lender and the seller became good friends! Seller claims he has a buyer with cash ($300K) but wants for me to have the house! What a nice guy.

Wow, so basically a $13k "gift" if you buy the house. Does the seller happen to be your mom?

TPB 2012 Mar 5, 2:43am

I've noticed we're back in circa 2008 NAR market damage control mode.

They're playing with the numbers again. Like it WORKED the last time.

housepoor 2012 Mar 5, 10:26am

The seller called and left a message tonight? Two days after I last spoke with them. They are asking for me to phone back. What can they want, what should I say? They told me they had a cask buyer?

REpro 2012 Mar 5, 11:19am

Tell them, that today you found another house on which you are considering to make an offer as well.

bighorse 2012 Mar 5, 11:45am

If it appraises for less, you walk away. If it appraises for more, you walk away. If it appraises right on target, you walk away.

I'm wondering why you offered in the first place.

housepoor 2012 Mar 5, 1:23pm

bighorse says

If it appraises for less, you walk away. If it appraises for more, you walk away. If it appraises right on target, you walk away.

I'm wondering why you offered in the first place.

I offered way back in December, the seller told me he had three other offers for more, so I made the offer. After making the offer the lender dropped the ball and after a month went by still no appraisal. Then I noticed the Market turned down another 10-15%, everyone involved were concerned the Home would not appraise. Then I got notice that my employer was freezing our Pay. I then phoned the seller and told them to sell to the other offers. I would not be able to pay the difference between the appraised value and what they wanted for the Home. Seller decided to stay in contract with me until the appraisal. Another Month went by until appraisal was finlly completed, Then I found defects with the Home further lowering the value of the Home. Patrick.net calculator states home is only worth about $220K

bighorse 2012 Mar 5, 3:02pm

I offered way back in December, the seller told me he had three other offers for more, so I made the offer. After making the offer the lender dropped the ball and after a month went by still no appraisal. Then I noticed the Market turned down another 10-15%, everyone involved were concerned the Home would not appraise. Then I got notice that my employer was freezing our Pay. I then phoned the seller and told them to sell to the other offers. I would not be able to pay the difference between the appraised value and what they wanted for the Home. Seller decided to stay in contract with me until the appraisal. Another Month went by until appraisal was finlly completed, Then I found defects with the Home further lowering the value of the Home. Patrick.net calculator states home is only worth about $220K

Was this not an appraiser sent to the property by the lender? The seller will not raise the price after the appraisal. The appraisal is for the loan. Why would you walk away after the appraisal justifies the lender loaning you the money?

JodyChunder 2012 Mar 5, 3:42pm

How can this be when I can build it new for $60/sq with profit?

Huh? Whereabouts? Try a minimum of 100 for a truly custom home and that is without any fancy dancy finish out

JodyChunder 2012 Mar 5, 3:51pm

APOCALYPSEFUCK is Tony Manero says

The Appraiser set the value right at the sellers asking price.

They're up to their old tricks again. Remember when, during the bubble, property appraisals ALWAYS seemed to come in at exactly the asking price? How uncanny!

housepoor 2012 Mar 5, 8:42pm

bighorse says

Was this not an appraiser sent to the property by the lender? The seller will not raise the price after the appraisal. The appraisal is for the loan. Why would you walk away after the appraisal justifies the lender loaning you the money?

I questioned the integrity of the appraisal. I am in the process of reporting the appraiser to the VA

housepoor 2012 Mar 5, 8:48pm

Do you have any reason to believe the seller didn't call the appraiser and paid twice what you paid him?

housepoor says

Then I found defects with the Home further lowering the value of the Home. Patrick.net calculator states home is only worth about $220K

The seller told me that the lender told him I would never get a copy of the appraisl, seller was not able to recall the appraisers name. I got three different stories on how and who made the appointment. yes the seller had the opportunnity to pay twice, he was there during the process.

25 chemechie 2012 Mar 5, 10:33pm

LAO says

Ok, i saw a vacant lot in my neighborhood for $140k... Its backed up against a hillside but its almost half an acre... 1/4 flat land.

Where do you live that that is a good deal? There is a lot for sale near me: 1 acre, $3200.

GUAB 2012 Mar 5, 11:51pm

CalifGal says

LAO says

woppa says

Come to NYC and build me a brand new house for 60/sf. I will sign on the dotted line.

He is talking out his ass.... He would plop a mobile home down in the lot and call it a new build.

Put your money where your mouth is and price a project for us.

What are you paying for site work?

Formed surfaces?

Flatwork?

Framing labor?

EFS?

IFS?

Spit it out.... lets hear it.

GL with that BROOOOO

gregpfielding 2012 Mar 6, 2:22am

I just paid for an appraisal and the appraiser added $30 per square foot for upgrades. This increased the value of a 1716 sq/ft home $45K. I thought this was excessive so I ended the deal. Does the $30 sound excessive? Do you need more details?

It's all relative. Appraisers will adjust the subject property according to the comps that they use in the appraisal. For proper context you need to see the six or so homes the appraiser used. It's a safe bet that they are in worse condition.

Also, most appraisers are happy to discuss their reports and methodology. You should ask them for more details, without necessarily assuming they are a part of some conspiracy.

Finally, Zillow sucks. They don't know which homes are nice and which are crap. For absolute values, they are generally right give-or-take 20%. But even for trends (like properties dropping 15%), they can be way off, skewed by a few weird sales.

gregpfielding 2012 Mar 6, 2:44am

housepoor says

The Appraiser set the value right at the sellers asking price.

They're up to their old tricks again. Remember when, during the bubble, property appraisals ALWAYS seemed to come in at exactly the asking price? How uncanny!

That's how it works in the real world. They don't bother putting a higher number - they confirm that the home is indeed worth what it's being sold for.

Consider as well that appraisals are not an exact science. Bring in 5 appraisers and you'll get 5 different numbers. At best, any individual appraiser's number is an approximation of fair value.

In practice, if the comps support the sale price, the appraiser will appraise the value at that price. Even if it's within a couple of percent, the appraiser will usually consider the value fair and give it - because after all it's an approximation anyway.

JodyChunder 2012 Mar 6, 5:13pm

gregpfielding says

You should ask them for more details, without necessarily assuming they are a part of some conspiracy.

They called it a conspiracy in 2004, too. They called vocal detractors of the ratings agencies conspiracy freaks as well.

I think it's fair to assume some level of collusion remains between appraisers/banks/realtors.

housepoor 2012 Mar 6, 8:34pm

gregpfielding says

You should ask them for more details, without necessarily assuming they are a part of some conspiracy.

They called it a conspiracy in 2004, too. They called vocal detractors of the ratings agencies conspiracy freaks as well.

I think it's fair to assume some level of collusion remains between appraisers/banks/realtors.

Appraiser will not return emails/phone calls. What agency do I use to file a complaint or investigate?

31 bg 2012 Mar 6, 10:35pm

@patrick

The rats were out in the trash last night

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TPB 2012 Mar 7, 12:20am

69Charger says

herrypicking an exception and calling it a rule again? Typical dishonest home-debtor/realtor schlepp.

Spiel is the word you're looking for. Schlep is to carry something cumbersome.

It's really a shame the English language didn't incorporate more Yiddish words and less Latin words.

Patrick 2012 Mar 7, 12:21am

bg says

The rats were out in the trash last night

Thanks for telling me. Last night's rats have been exterminated.

gregpfielding 2012 Mar 7, 2:03am

I think it's fair to assume some level of collusion remains between appraisers/banks/realtors.

There is some, but it's nothing like in the good old days. Appraisers today won't talk much with agents and they steer clear of conversations regarding the value. During the boom, they would literally call the agents and ask for their help justifying the price. And, back then, lenders could hand-pick the appraisers, which doesn't happen anymore.

Today, the best agents can do is hand the appraiser a few comps when the come to visit the house. But I wouldn't call this collusion. Because appraisers are picked at random, we do see ones with no familiarity with the neighborhood or why it is more or less desirable than other spots.

rootvg 2012 Mar 7, 2:37am