|Appraisals||<– Date –> <– Thread –>|
|From: heidinys (heidinysearthlink.net)|
|Date: Wed, 5 Feb 2014 05:24:13 -0800 (PST)|
Hi, Katie is pointing out a real concern for all communities. Years ago I was told by the person handling the sale of my pre-co-housing house that 'Comps were developed in the fifties when there were suburban developments of basically the same house. These houses were comparable, often even the same. Since then, appraisers have basically had to wing it, because houses are not the same.' So, it might take some time, but it might work to bring this information to light. For folks interested in appraisal--now or in the future to verify this info ( I have not) and write some letters to editors/articles to whatever publications you can. It is the kind of information that can then get picked up by, for example, the NYT or other major newspaper Real Estate sections, and could effect a change. Until we do this, we may stay stuck in the same boat. It might be fun to see if we could effect a change. I am full up with the pro bono work I do pretty much every day, in addition to actually working for income, and am not offering to do this! best, Ruth Cantines Island Saugerties ,NY On Feb 5, 2014, at 6:16 AM, cohousing-l-request [at] cohousing.org wrote: Date: Tue, 04 Feb 2014 08:29:13 -0800 From: Kathryn McCamant <kmccamant [at] cohousingpartners.com> Subject: Re: [C-L]_ appraisals Dear Ann, That's great that new condo developments in DC are including extensive common facilities! I am curious how many units that typically have.... How many share these common facilities? But keep in mind, that is very unusual in most of the rest of the country. We have built the only two new condominium developments in our county in the last 10 years! Nevada City Cohousing and Wolf Creek Lodge. The only other condos in the region are old and cheap. We have no comparables at all in the viceninity. I have found this to be commonplace in many regions, generally anywhere outside of the major cities. Cohousing shares appraisal challenges with any residential development build "outside the box" ... No two car garage, solar panels, green building, a home connected to a business, etc..... Banks are fearful of getting stuck with loans that don't meet Fannie Mae regulations (so they can sell them on the secondary market and have the government guarantee backing them) and thus are extra cautious on lending on anything that might raise issues ...they would rather not do the loan than take the risks. In addition, they are now much stricter about having out-of-project comps...so even if you have recent sales in your community that justify the price, that may not be enough. And, or course, if haven't had any sales for a while you won't even have "in project" comps. I would actually like to advocate a national policy that allows you to choose to pay extra for an special, more indepth appraisal when it is clear there are not easy local comps. If you get a bad appraisal, its very hard to undue with that lender. Given the current state of residential lending in the US, the tough restrictions on appraisals, and the inherit difficulty of finding comparables sales for cohousing outside of major cities....I wouldn't mind paying a couple hundred dollars for a good appraisal that gets me the loan I need..... A small change in the interest rate or a requirement for a smaller down payment will recover that cost immediately. What I find much more frustrating is when you are ready to pay more for a better research appraisal but the bank insist on only the standard low fee appraisal, and then won't do the loan. Respectfully, Katie Nevada City Cohousing -- Kathryn McCamant, President, Architect CoHousing Partners, LLC 241 Commercial Street Nevada City, CA 95959 T.530.478.1970 C.916.798.4755 www.cohousingpartners.com
- Re: appraisals, (continued)
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