Thread: Realestate questions, am I the only one?

Accessories are one thing but I have tangible items that create value to a home in any market - geo-thermal heating/cooling, soybean based insulation, formaldehyde free products, energy managment system and passive solar heating and lighting.

These are the bones of the house, the things that establish true value, not just the finishes that are subject to whether they are "pretty" or not. It's not like I built a Ford Escort and pimped it out with the entire Advance Auto catalog; I built an Aston Martin and put some tasteful wheels on it. So even if you don't like the wheels the core of the car is what you are buying.

On a related note, my appraiser told me that the public is unwilling to pay for these types of items but in the same sentance told me that eco-friendly homes are the only ones moving right now and are selling at a higher price? What?

Originally Posted by 6Myles

On a related note, my appraiser told me that the public is unwilling to pay for these types of items but in the same sentance told me that eco-friendly homes are the only ones moving right now and are selling at a higher price? What?

I will stand by my earlier comments. It's not what you did that affected your LTV. When you enter the real estate debt market today you are in an arena where the players are making decisions based on fear and outside pressure more than logic.

An appaiser that doesn't underwrite to the Lenders criteria won't be on the approved list very long. Sort of an "in your face" reminder of the Golden Rule (you know...he who has it makes the rules).

Originally Posted by Bill S

I will stand by my earlier comments. It's not what you did that affected your LTV. When you enter the real estate debt market today you are in an arena where the players are making decisions based on fear and outside pressure more than logic.

An appaiser that doesn't underwrite to the Lenders criteria won't be on the approved list very long. Sort of an "in your face" reminder of the Golden Rule (you know...he who has it makes the rules).

Agreed.

I guess that's what has me so infuriated is that I did everything right (financing, building myself to save money, selected systems/finishes that add value) and I'm still going to get screwed. If I had paid a GC to do this house I would have about $200k of negative equity in the house.

One reason for the low appraisal is that appraisers are under the gun these days. A few years ago, a month after buying a home you could get an appraisal showing growth. Bang, the bubble burst and that same property suddenly was valued much lower.

I am an attorney who represents appraisers and real estate associations and brokers. A major problem affecting sales these days is the low appraisal. Appraisers are gun shy. I wouldn't worry about it unless I was selling, refinancing, etc. Get another appraisal or have the low appraisal reviewed by a review appraiser.

Good luck.

I also think though many like the idea of a green house and high tech goodies when they see how much it can add to the price unless they are affluent and appreciative many just don't see the increased price.

Originally Posted by thebigspendur

I also think though many like the idea of a green house and high tech goodies when they see how much it can add to the price unless they are affluent and appreciative many just don't see the increased price.

Very true. I was aware that I might not get 100% but dang 65 cents on the dollar is tough.

But the $45 power bill for a nearly 3000sf house set to 72 degrees all day is nice

Just curious if you were actually on property when the appraiser came. My wife and I are in the process of buying in upstate NY and one realtor told us she has seen bank appraisers literaly just slow down and pass the house they are "appraising". Unfortunately not everyone is as honest as the folks in this forum.

Good luck!