House #23: Appraisals

May 5, 2011 · 0 comments

Our buyer’s lender has had two appraisals on The Horsey House, and I’m thrilled to report that both came in above the contract price…so it appears that the last major hurdle for this transaction has been cleared!

I always pull comps before the appraisals, so that I can give a few to the appraiser to make his job a bit easier. In the case of this house, I couldn’t find a single comp that met all the criteria that most appraisers look for — closed within 6 months, within 1 mile of the house, built around the same time, same style, etc. And looking at the two appraisals that we got back, it appears that the appraisers has the same issue.

They used several comps that were over 2 miles away, they used a couple comps that were more than 30 years older than our house, they used a couple comps that were nearly a year old, etc. I’m just glad they didn’t use any foreclosures or short sales as comps, as this could have brought the appraisal down considerably.

Now that all inspections and appraisals are done, the loan should go to underwriting for review and final approval, which I imagine should take about a week or so. We were scheduled to close this one next Monday, but the final loan approval probably won’t be ready by then, and because the buyer only has Monday’s off work, we’ll likely push the closing to Monday, May 16.

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