pittbull -
I don’t pretend to understand all of the intricacies of the current economy but I am pursuing education in the real estate industry (not to be an appraiser) so I pay attention to this stuff nowadays. I also live in Scottsdale like you so I see what’s been happening around here. Just wanted to throw out a link to an article from the Arizona Republic last month that might give you some more insight and explains the general climate pretty well:
[quote]pittbulll wrote:
[quote]LIFTICVSMAXIMVS wrote:
[quote]JoeGood wrote:
Never attribute to malice what can be explained by stupidity.[/quote]
What if it is neither malice nor stupidity but rather what is in the best interest of the bank?[/quote]
I agree with you , I do how ever feel that allowing Banks to invest in the Stock market and also be Insurance companies is not in the best interest of the American Public [/quote]
This is only an issue because we have a government that believes in and practices “too big to fail” fiscal policies.
[quote]SHARKinafishbowl wrote:
pittbull -
I don’t pretend to understand all of the intricacies of the current economy but I am pursuing education in the real estate industry (not to be an appraiser) so I pay attention to this stuff nowadays. I also live in Scottsdale like you so I see what’s been happening around here. Just wanted to throw out a link to an article from the Arizona Republic last month that might give you some more insight and explains the general climate pretty well:
While I agree the market has many pressures, i still contend that if the banks are pressuring Appraisers to low ball all appraisals it will artificially hold down the selling prices. Anthem is advertising new homes on I17 for $500,000 . They are new homes granted but I will match them item for item in the house the fixtures in my home are not only superior they are also more valuable . I contend my property and house are more valuable but will appraise for half the price
What I was saying is that banks are doing everything they can protect their lending and Fannie and Freddie are trying to push real estate prices up with false supply/demand.
[quote]LIFTICVSMAXIMVS wrote:
[quote]pittbulll wrote:
[quote]LIFTICVSMAXIMVS wrote:
[quote]JoeGood wrote:
Never attribute to malice what can be explained by stupidity.[/quote]
What if it is neither malice nor stupidity but rather what is in the best interest of the bank?[/quote]
I agree with you , I do how ever feel that allowing Banks to invest in the Stock market and also be Insurance companies is not in the best interest of the American Public [/quote]
This is only an issue because we have a government that believes in and practices “too big to fail” fiscal policies.[/quote]
I will not agree that bailing out the banks were the wrong thing to do,I feel we give banks privileges so that they may serve a role in our society. I believe we need rules in place to make sure banks do not lose sight that they get special privileges to benefit America and not just their officers , elite and investors
[quote]Adam Bomb wrote:
What I was saying is that banks are doing everything they can protect their lending and Fannie and Freddie are trying to push real estate prices up with false supply/demand.[/quote]
Houses are selling and can not get a loan for selling price unless they come from a developer that can pressure lenders
[quote]pittbulll wrote:
[quote]LIFTICVSMAXIMVS wrote:
[quote]pittbulll wrote:
[quote]LIFTICVSMAXIMVS wrote:
[quote]JoeGood wrote:
Never attribute to malice what can be explained by stupidity.[/quote]
What if it is neither malice nor stupidity but rather what is in the best interest of the bank?[/quote]
I agree with you , I do how ever feel that allowing Banks to invest in the Stock market and also be Insurance companies is not in the best interest of the American Public [/quote]
This is only an issue because we have a government that believes in and practices “too big to fail” fiscal policies.[/quote]
I will not agree that bailing out the banks were the wrong thing to do,I feel we give banks privileges so that they may serve a role in our society. I believe we need rules in place to make sure banks do not lose sight that they get special privileges to benefit America and not just their officers , elite and investors [/quote]
Why are banks any different than computer companies, for example?
All businesses serve consumers and a businesses are best served by serving the consumer best they can. This goes for banks and every other industry.
Bailing out any institution just invites corruption and moral hazard because only the profligate need bailing out.
[quote]pittbulll wrote:
[quote]SHARKinafishbowl wrote:
pittbull -
I don’t pretend to understand all of the intricacies of the current economy but I am pursuing education in the real estate industry (not to be an appraiser) so I pay attention to this stuff nowadays. I also live in Scottsdale like you so I see what’s been happening around here. Just wanted to throw out a link to an article from the Arizona Republic last month that might give you some more insight and explains the general climate pretty well:
While I agree the market has many pressures, i still contend that if the banks are pressuring Appraisers to low ball all appraisals it will artificially hold down the selling prices. Anthem is advertising new homes on I17 for $500,000 . They are new homes granted but I will match them item for item in the house the fixtures in my home are not only superior they are also more valuable . I contend my property and house are more valuable but will appraise for half the price [/quote]
You are failing to understand how home appraisals work. I don’t care if the kitchen was plated in SOLID GOLD and there were diamonds on all of the fixtures (and if it were all to theoretically convey with the sale) - if the house of similar square footage next door sold for 100K and the house down the street of similar square footage sold for 110K, FOR THE PURPOSE OF SECURING A LOAN, your house will be valued at 105K, gold and diamonds and all. NO EXCEPTIONS.
I know, IT SUCKS. But those are the rules. Thank your congressman.
And Jewbacca is absolutely correct in that it is illegal for banks to have ANY contact with appraisers, lest they somehow influence the value. Most banks/lenders retain an appraisal management company who assign appraisers from a random list. BRILLIANT, right?
THIS IS A RESULT OF REGULATION STIFLING FREE MARKET. Interestingly enough, I was just forced out of the industry I thrived in for more than five years due to this same bullshit, arbitrary regulation by fucking idiots who don’t understand the industry and who cant even understand basic math. But THEY made the rules…
If it makes you feel any better, I denied loans to HUNDREDS of people in the last few years due the same valuation/appraisal issues you are experiencing. And they ALL think their house is worth more than it is. So you’re not alone.
[quote]LIFTICVSMAXIMVS wrote:
Why are banks any different than computer companies, for example?
[/quote]
Because they get privileges in RE: to money that no other businesses do , I have to admit to not knowing for sure , but I heard for every dollar deposited they can invest 10 . that was supposed to be back in the community not in some textile company in China
[quote]angry chicken wrote:
[quote]pittbulll wrote:
[quote]SHARKinafishbowl wrote:
pittbull -
I don’t pretend to understand all of the intricacies of the current economy but I am pursuing education in the real estate industry (not to be an appraiser) so I pay attention to this stuff nowadays. I also live in Scottsdale like you so I see what’s been happening around here. Just wanted to throw out a link to an article from the Arizona Republic last month that might give you some more insight and explains the general climate pretty well:
While I agree the market has many pressures, i still contend that if the banks are pressuring Appraisers to low ball all appraisals it will artificially hold down the selling prices. Anthem is advertising new homes on I17 for $500,000 . They are new homes granted but I will match them item for item in the house the fixtures in my home are not only superior they are also more valuable . I contend my property and house are more valuable but will appraise for half the price [/quote]
You are failing to understand how home appraisals work. I don’t care if the kitchen was plated in SOLID GOLD and there were diamonds on all of the fixtures (and if it were all to theoretically convey with the sale) - if the house of similar square footage next door sold for 100K and the house down the street of similar square footage sold for 110K, FOR THE PURPOSE OF SECURING A LOAN, your house will be valued at 105K, gold and diamonds and all. NO EXCEPTIONS.
I know, IT SUCKS. But those are the rules. Thank your congressman.
And Jewbacca is absolutely correct in that it is illegal for banks to have ANY contact with appraisers, lest they somehow influence the value. Most banks/lenders retain an appraisal management company who assign appraisers from a random list. BRILLIANT, right?
THIS IS A RESULT OF REGULATION STIFLING FREE MARKET. Interestingly enough, I was just forced out of the industry I thrived in for more than five years due to this same bullshit, arbitrary regulation by fucking idiots who don’t understand the industry and who cant even understand basic math. But THEY made the rules…
If it makes you feel any better, I denied loans to HUNDREDS of people in the last few years due the same valuation/appraisal issues you are experiencing. And they ALL think their house is worth more than it is. So you’re not alone.
[/quote]
I believe I addressed that ,the lot my house sits on is 4xa larger , in a better location and worth considerably more , the house is in excellent condition and because my name is not Del Web I can not sell my house for the same price because it would never get financing.
Del Webs houses are 30 miles from town, postage size lots , inferior fixtures
(To mine)there is not one aspect that is better than mine, I have a pool I also have horse privileges , I know it is hard for everybody to believe that (American) Capitalism may have some glitches 
[quote]pittbulll wrote:
I recently applied for refinancing on my house , the banks used three derelict houses for comps. I also heard a segment on NPR that a large percent of homes are denied financing because of appraisals .
What the appraisal did would be like comping out a mint 1968 mustang out of a junk yard.[/quote]
You’re mad because they appraiser chose to compare your house to other properties you think were bad (“derelict”). Got it.
Why did the appraisers choose these other properties? What incentive did they have for choosing them over other ones?
[quote]pittbulll wrote:
[quote]LIFTICVSMAXIMVS wrote:
Why are banks any different than computer companies, for example?
[/quote]
Because they get privileges in RE: to money that no other businesses do , I have to admit to not knowing for sure , but I heard for every dollar deposited they can invest 10 . that was supposed to be back in the community not in some textile company in China [/quote]
Yes, this is called fractional reserve banking. This is especially why bad banks must fail…to correct their profligate lending habits.
[quote]thunderbolt23 wrote:
[quote]pittbulll wrote:
I recently applied for refinancing on my house , the banks used three derelict houses for comps. I also heard a segment on NPR that a large percent of homes are denied financing because of appraisals .
What the appraisal did would be like comping out a mint 1968 mustang out of a junk yard.[/quote]
You’re mad because they appraiser chose to compare your house to other properties you think were bad (“derelict”). Got it.
Why did the appraisers choose these other properties? What incentive did they have for choosing them over other ones?
[/quote]
I am not angry, I am stating that if they are doing this to me , they are doing this to other and in effect they are depressing the market.
I personally think your observations to be shallow
[quote]pittbulll wrote:
I am not angry, I am stating that if they are doing this to me , they are doing this to other and in effect they are depressing the market. [/quote]
But “who” is doing “what” to you? Again, why did the appraisers choose these other properties that were “derelict” and hurt your valuation? What incentive did they have for choosing them over other ones?
Fantastic, I’ll see if I can find a way to live with myself knowing that. What about answer to the questions?
[quote]thunderbolt23 wrote:
But “who” is doing “what” to you? Again, why did the appraisers choose these other properties that were “derelict” and hurt your valuation? What incentive did they have for choosing them over other ones?
[/quote]
The who are IMO Banks pressuring Appraisers,The What is falsely devaluing my property. The why is for every penny I would save would be every penny they would lose.
I hope you can find it in your heart to over look your short comings
[quote]pittbulll wrote:
[quote]thunderbolt23 wrote:
But “who” is doing “what” to you? Again, why did the appraisers choose these other properties that were “derelict” and hurt your valuation? What incentive did they have for choosing them over other ones?
[/quote]
The who are IMO Banks pressuring Appraisers,The What is falsely devaluing my property. The why is for every penny I would save would be every penny they would lose.
I hope you can find it in your heart to over look your short comings :)[/quote]
They aren’t falsely devaluing property. The value a property will sell is its value. If someone doesn’t have cash for what they want to pay and can’t arrange financing at that price the property isn’t sold.
The community reinvestment act is what you are talking about and its unlikely you are in any situation that is relevant to it.
This isn’t a new thing historically there were situations in the US where there was no liquidity in the housing market that brought about the organizations that everyone hates on now whose sole original purpose was to restore needed liquidity to the housing market. Its just they went way beyond their original scope.
A separate thing you seem angry at is simply a feature of our current corporate capitalism…the builder has a relationship with the bank this is the problem you should focus on if you deem it a problem.
[quote]pittbulll wrote:
The who are IMO Banks pressuring Appraisers…[/quote]
Ok. So what is the basis for your opinion?
[quote]groo wrote:
They aren’t falsely devaluing property. The value a property will sell is its value. If someone doesn’t have cash for what they want to pay and can’t arrange financing at that price the property isn’t sold.
the builder has a relationship with the bank this is the problem you should focus on if you deem it a problem.
[/quote]
The value of a property is the value it would sell for that part makes sense , the rest of that paragraph is non sense. And THEY ARE devaluing property under a false pretense.
I have no problem with the builder’s relationship with the lender, I do how ever have a problem with the lender not fulfilling it’s station in society
How many home loans have you refinanced for someone?
Are you “suppressing the realestate market?”
[quote]pittbulll wrote:
[quote]groo wrote:
They aren’t falsely devaluing property. The value a property will sell is its value. If someone doesn’t have cash for what they want to pay and can’t arrange financing at that price the property isn’t sold.
the builder has a relationship with the bank this is the problem you should focus on if you deem it a problem.
[/quote]
The value of a property is the value it would sell for that part makes sense , the rest of that paragraph is non sense. And THEY ARE devaluing property under a false pretense.
I have no problem with the builder’s relationship with the lender, I do how ever have a problem with the lender not fulfilling it’s station in society
[/quote]
I mean its irrelevant if some guy with no financing claims he’ll buy a house at some price say the 500k your house is worth if he either doesn’t have the money or can’t get that amount financed…there is no sale. You might think your house is worth 3 million you might convince some jackass that he would pay that amount if he could…but without the cash no sale.
Thats what I mean when you claim these houses were sold but there was no financing, well guess what they weren’t sold.