Mortgage appraisal value on hot market

jimmod wrote: ↑ Hi all,

With hot market like right now the market price can increase within a month.
How this will impact the appraisal value.
E.g a 3 bed home sold price:
Nov 2020: 650K
Dec 2020: 700K
Jan 2021: 750K
And now in Feb it can be 800K, since only the purchase on Nov-Dec ones are closed will the appraisal still around 650K?

With the closing date 2-3 months, is it possible to get the appraisal later on March rather Feb? to get better appraisal price.. To avoid the need higher down payment.

Thanks.

RichmondCA wrote: ↑ This is the concern I had early on for some clients, pretty much anywhere in the GTA has been appraising at these insane month over month increases, even places like Durham. Seems to be low risk of not appraising at this point.

Would like to hear what the rfd mortgage people are seeing.

jimmod wrote: ↑ Hi all,

With hot market like right now the market price can increase within a month.
How this will impact the appraisal value.
E.g a 3 bed home sold price:
Nov 2020: 650K
Dec 2020: 700K
Jan 2021: 750K
And now in Feb it can be 800K, since only the purchase on Nov-Dec ones are closed will the appraisal still around 650K?

With the closing date 2-3 months, is it possible to get the appraisal later on March rather Feb? to get better appraisal price.. To avoid the need higher down payment.

Thanks.

joepipe wrote: ↑ no because lenders mortgage the LOWER of the purchase price or appraisal....it wont matter if it appraises higher

jimmod wrote: ↑ The problem is when the appraisal is a lot lower than the market price and the buyer has small down payment.
E.g 800K purchase and appraisal value turn out only 650K with the buyer only has 100K down payment.

ozzie16 wrote: ↑ I question whether banks are really even doing appraisals! I know for mine (a condo), they said the appraisal was done, but I never got a call or anything to set up an appointment for the appraisal, I just asked about the approval conditions and when the appraisal would be done and they said it was already completed.

ozzie16 wrote: ↑ I question whether banks are really even doing appraisals! I know for mine (a condo), they said the appraisal was done, but I never got a call or anything to set up an appointment for the appraisal, I just asked about the approval conditions and when the appraisal would be done and they said it was already completed.

RichmondCA wrote: ↑ This is the concern I had early on for some clients, pretty much anywhere in the GTA has been appraising at these insane month over month increases, even places like Durham. Seems to be low risk of not appraising at this point.

Would like to hear what the rfd mortgage people are seeing.

slowtyper wrote: ↑ Just heard from my broker my purchase came in appraised low! Asked my broker if I can see the appraisal, if it's a full appraisal, or if it can be appealed somehow.

dc200 wrote: ↑ Also while we're on the topic of valuation, just FYI, housesigma's estimations are inaccurate.

I know someone that had their detached house in Mississauga recently appraised at 1.2m while housesigma estimated it at 200k less.

Serasera wrote: ↑ I’m sorry, this must be very stressful. My friends bought in Orillia and their appraisal came in 190K short. They too are asking for another appraisal but the lender has said no, they only use their own chosen appraisers.

slowtyper wrote: ↑ Was there any appeal process? I took a look at the report and I do have issues with the comparables chosen but maybe I'm biased. Because of lack of comparables they just chose the three closest 3 story townhouses but doesn't take into consideration my units much better location and school district. Two of them are also much smaller at 844sqft vs my 1122sqft and so the appraiser added an extra $42000 to the values to make up for the sqft. That itself seems way too low.

I've asked my realtor to assist finding more comparables and will try to write up a well worded appeal. Any tips would be appreciated as well as a way to quantify a better location and better school district.

slowtyper wrote: ↑ Was there any appeal process? I took a look at the report and I do have issues with the comparables chosen but maybe I'm biased. Because of lack of comparables they just chose the three closest 3 story townhouses but doesn't take into consideration my units much better location and school district. Two of them are also much smaller at 844sqft vs my 1122sqft and so the appraiser added an extra $42000 to the values to make up for the sqft. That itself seems way too low.

I've asked my realtor to assist finding more comparables and will try to write up a well worded appeal. Any tips would be appreciated as well as a way to quantify a better location and better school district.