Comments on: Should a Cash Buyer get an Appraisal? http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/ Phoenix real estate | Search Phoenix Homes for sale | Real Estate Blog Thu, 18 Mar 2010 20:06:37 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Dan Smithhttp://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/#comment-54203 Dan Smith Fri, 29 May 2009 19:13:36 +0000 http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/2118#comment-54203 Yes, getting an idea of the value of a property is always a good idea. The question is, can the average person find and use ALL the same info as a certified "appraiser"? According to the other "professionals" on this board, "NO" , you must pay a "professional". The real truth is that ANYONE can access and use the exact same info as any appraiser. Given that appraisals did ABSOULTELY nothing to stave off the current real estate crisis, I would have to honestly question the value of a $400 piece of paper and the obviously temporary "peace of mind" it might offer. Any intelligent person with a cash offer should be able to do some reasearch and arrive at a realistic CURRENT value that might hold up for, at most, a month or two. Peace of mind is an elusive thing based mostly on faith and "professional advice" that doesn't intersect with reality a great deal of the time. Good luck out there and trust your own instincts! Yes, getting an idea of the value of a property is always a good idea. The question is, can the average person find and use ALL the same info as a certified “appraiser”? According to the other “professionals” on this board, “NO” , you must pay a “professional”. The real truth is that ANYONE can access and use the exact same info as any appraiser. Given that appraisals did ABSOULTELY nothing to stave off the current real estate crisis, I would have to honestly question the value of a $400 piece of paper and the obviously temporary “peace of mind” it might offer. Any intelligent person with a cash offer should be able to do some reasearch and arrive at a realistic CURRENT value that might hold up for, at most, a month or two. Peace of mind is an elusive thing based mostly on faith and “professional advice” that doesn’t intersect with reality a great deal of the time. Good luck out there and trust your own instincts!

]]> By: Leon Blenky-Miami Real Estatehttp://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/#comment-51983 Leon Blenky-Miami Real Estate Mon, 27 Apr 2009 21:24:04 +0000 http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/2118#comment-51983 I would agree that it is a wise spending of a small additional cost to go ahead with an appraisal when it comes to protecting the large investment of a home. I would agree that it is a wise spending of a small additional cost to go ahead with an appraisal when it comes to protecting the large investment of a home.

]]> By: Ann@Las Vegas Home Mortgagehttp://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/#comment-51895 Ann@Las Vegas Home Mortgage Sun, 26 Apr 2009 10:35:31 +0000 http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/2118#comment-51895 Getting an appraisal is a must. If anything else it gives the buyer the ease of mind and let him/her sleep easier at night. Getting an appraisal is a must. If anything else it gives the buyer the ease of mind and let him/her sleep easier at night.

]]> By: John@Irvine Mortgagehttp://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/#comment-51894 John@Irvine Mortgage Sun, 26 Apr 2009 10:32:53 +0000 http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/2118#comment-51894 I have been guilty of purchase a property without getting an appraisal, but only because I knew the area very well and the market was going. I did end up losing money on that deal though, so lesson learned.*<em>*<em>John´s last blog post..<a href="http://irvinemortgage.org/irvinemortgagehistory">History of Irvine mortgages</a></em></abbr></abbr></em> I have been guilty of purchase a property without getting an appraisal, but only because I knew the area very well and the market was going. I did end up losing money on that deal though, so lesson learned.

**John´s last blog post..History of Irvine mortgages

]]> By: Weekly Roundup: Inaugural Edition | Frugal Real Estatehttp://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/#comment-51314 Weekly Roundup: Inaugural Edition | Frugal Real Estate Thu, 16 Apr 2009 11:10:52 +0000 http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/2118#comment-51314 [...] Should a Cash Buyer get an Appraisal? It’s an interesting question.  If you’re paying cash for the house, do you really need an appraisal?  The short answer is yes, because most real estate contracts require one for closing, regardless of how the deal is financed.  Read on for more specifics.  (@The Phoenix Real Estate Guy) [...] [...] Should a Cash Buyer get an Appraisal? It’s an interesting question.  If you’re paying cash for the house, do you really need an appraisal?  The short answer is yes, because most real estate contracts require one for closing, regardless of how the deal is financed.  Read on for more specifics.  (@The Phoenix Real Estate Guy) [...]

]]> By: James Wheelock@humble real estatehttp://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/#comment-51106 James Wheelock@humble real estate Mon, 13 Apr 2009 07:16:55 +0000 http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/2118#comment-51106 I have always struggled a bit with this question from a professional perspective. I often get heat from appraisers when I say that an appraisal is just an opinion of value. In this case they are a educated opinion of value with a set of pre-determined premises to build that opinion, but none the less it is an opinion. In addition there is no reason why one cannot use the same adjustment guidelines appraisers do against a set of comps. to come up with what would be the anticipated market value for the property. The only true advantage I see to having an appraisal is that you will recieve an estimate for the replacement cost of the property.With this said I would say that if having an estimate of replacement cost means a great deal to you or if you do not trust your agents market knowledge and/or ethics, then why not put out the $400 that it costs for the appraisal. Now if you have an agent you believe is trust worthy, has excellent market knowledge, and is willing to do the adjustments to the comps for you then I just don't see the need to lay out the money.*<em>*<em>James Wheelock´s last blog post..<a href="http://humblehomesforsale.com/271905-17422-ebeys-landing-ln-humble-tx-77346/">$271,905 :: 17422 Ebeys Landing Ln, Humble TX, 77346</a></em></abbr></abbr></em> I have always struggled a bit with this question from a professional perspective. I often get heat from appraisers when I say that an appraisal is just an opinion of value. In this case they are a educated opinion of value with a set of pre-determined premises to build that opinion, but none the less it is an opinion. In addition there is no reason why one cannot use the same adjustment guidelines appraisers do against a set of comps. to come up with what would be the anticipated market value for the property. The only true advantage I see to having an appraisal is that you will recieve an estimate for the replacement cost of the property.

With this said I would say that if having an estimate of replacement cost means a great deal to you or if you do not trust your agents market knowledge and/or ethics, then why not put out the $400 that it costs for the appraisal. Now if you have an agent you believe is trust worthy, has excellent market knowledge, and is willing to do the adjustments to the comps for you then I just don’t see the need to lay out the money.

**James Wheelock´s last blog post..$271,905 :: 17422 Ebeys Landing Ln, Humble TX, 77346

]]> By: Jim Dolanch-Pittsburgh Real Estate Experthttp://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/#comment-51081 Jim Dolanch-Pittsburgh Real Estate Expert Mon, 13 Apr 2009 01:14:06 +0000 http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/2118#comment-51081 I would agree that an appraisal is worth the small extra cost, but would say that for cash buyers it would be wise to add a clause to their contract that offers them the way to back out , or lower their offer if the house appraises for much less than the asking price. Being a cash buyer, they have great bargining power, and should take care to make sure they are actually paying a fair price. I would agree that an appraisal is worth the small extra cost, but would say that for cash buyers it would be wise to add a clause to their contract that offers them the way to back out , or lower their offer if the house appraises for much less than the asking price. Being a cash buyer, they have great bargining power, and should take care to make sure they are actually paying a fair price.

]]> By: Karen Goodmanhttp://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/#comment-51075 Karen Goodman Sun, 12 Apr 2009 22:56:56 +0000 http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/2118#comment-51075 It's hard to believe the the Arizona Realtor association doesn't have a standard appraisal rider that can simply be added to the contract. The St. Louis association has a number of riders, including an appraisal rider. Our rider gives the buyer 15 days if the contract is not contingent on financing, or matches the loan commitment date if it is contingent. It allows buyers to terminate if it doesn't appraise for sale price, but what often happens is that an agreement and amendment is added to the contract lowering the sale price to the appraisal price. Or, the buyer can move forward and pay the difference between the appraisal and the sale price if they are using a lender. Rarely would I recommend this. But, if sale price is just a few thousand dollars above appraisal price, a buyer really wants a house and the seller just won't drop their price, it does occasionally happen.*<em>*<em>Karen Goodman´s last blog post..<a href="http://feedproxy.google.com/~r/ArchCityHomes/~3/wbCXqoEkZ8Y/">Bad MLS Photo of the Day #18</a></em></abbr></abbr></em> It’s hard to believe the the Arizona Realtor association doesn’t have a standard appraisal rider that can simply be added to the contract. The St. Louis association has a number of riders, including an appraisal rider. Our rider gives the buyer 15 days if the contract is not contingent on financing, or matches the loan commitment date if it is contingent. It allows buyers to terminate if it doesn’t appraise for sale price, but what often happens is that an agreement and amendment is added to the contract lowering the sale price to the appraisal price. Or, the buyer can move forward and pay the difference between the appraisal and the sale price if they are using a lender. Rarely would I recommend this. But, if sale price is just a few thousand dollars above appraisal price, a buyer really wants a house and the seller just won’t drop their price, it does occasionally happen.

**Karen Goodman´s last blog post..Bad MLS Photo of the Day #18

]]> By: Steve Belthttp://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/#comment-51065 Steve Belt Sun, 12 Apr 2009 19:42:46 +0000 http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/2118#comment-51065 Hi Jay. This was indeed one of the better Q&A's on Trulia in the recent past for the Phoenix area, which has been a little lacking of late. Naturally, I agree with me. ;-)*<em>*<em>Steve Belt´s last blog post..<a href="http://feedproxy.google.com/~r/PhoenixAreaRealEstateBlog/~3/cw0dD0-TroQ/">Fannie Mae HomeStyle Renovation Loan: Ideal For Investors</a></em></abbr></abbr></em> Hi Jay. This was indeed one of the better Q&A’s on Trulia in the recent past for the Phoenix area, which has been a little lacking of late. Naturally, I agree with me. ;-)

**Steve Belt´s last blog post..Fannie Mae HomeStyle Renovation Loan: Ideal For Investors

]]> By: Esko Kiuruhttp://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/#comment-51032 Esko Kiuru Sun, 12 Apr 2009 03:19:28 +0000 http://www.phoenixrealestateguy.com/should-a-cash-buyer-get-an-appraisal/2118#comment-51032 Jay,Every home buyer should strongly consider getting an independent opinion of the property's value on a cash sale. An appraisal costs quite a bit of money, while a real estate agent can do an BPO, which also is very accurate. I wouldn't do a major purchase like this without getting some recent stats on nearby property values. Jay,

Every home buyer should strongly consider getting an independent opinion of the property’s value on a cash sale. An appraisal costs quite a bit of money, while a real estate agent can do an BPO, which also is very accurate. I wouldn’t do a major purchase like this without getting some recent stats on nearby property values.

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