Anyone else think we have a major problem with the entire corrupted housing appraisal system in the US? Or maybe Phoenix real estate is simply crashing fast and furious now...
Hmmm...
December 10, 2007
A silly question.. How can a home in Arizona appraised a few weeks ago for $2.2 million be listed for sale today at $1.4 million?
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22 comments:
Because wifey is doing pool boy.
The appraisal bunch will not get out of the housing debacle unscathed. It will be revealed that they along with the rest of the housing scheme members purposely defrauded millions of Americans by inflating values.Hope you didn't use your home as a ATM and purchased that oversized SUV gas hog just because you could...If so it is time to pay the piper.
An unadvertised short sale, maybe? That picture doesn't look like it's a very old house, and based on the "lake view" part, I'm guessing it's around Lake Pleasant somewhere. They were starting to build some pricey homes out there when I left.
Interesting that they are using a Colorado company to hype it, though. Maybe all the local boys and girls told them it ain't gonna sell, even at that price.
Not sure how much a basement is going to add to the value in Phoenix. I never heard of a house that had one.
I wonder if it comes with a free Humvee? ;)
Mark to market?
Sellers mind set may be something like this: It makes the house look like a steal by asking about half price, you know, because you are special. No really you are. Also, you deserve this break at my expense. Hurry up and sign you stupid fu*@ing jerk off.
Appraised value is looking at past sales, while market value or asking price is looking forward. This is also an investor website and it sounds like more of an investor to investor type offering or wholesale deal. This would also explain why it's not in the Phoenix MLS.
The water photo is to narrow for Lake Pleasant, unless there is a small inlet area that was just recently developed. But, Google Earth's photos would have to be 2 years old to not show this development.
I bet the final sale price will be inder $1M
Maybe it's on the Scottsdale Waterfront. Oops I meant the sewage canal ... lol
The are lying. It is an advertisement. Did you lose your common sense?
Damn that is an ugly looking house. Someone remind these idiots big does not equal stylish.
Where is the driveway? What does the rest of the neighborhood look like?
In all of this mess the appraisal companies have squeaked by with little blame and IMO they are as much at fault for this crash as anyone. They let their morals lay by the wayside and appraised properties way too high just so people could cash out - so the mortgage companies could write even more toxic pieces of fraudulent paper. They are just as much to blame as anyone.
Bwahahah! The wife's dreams of her house as cash machine are over.
Next week it will be a 2 for 1 sale.
.
1.4
it's still over priced!!!!
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That's because the owner is giving away $800k of instant equity.
To all of you losers, this home will sell. It will sell for a good price. Then you losers will cry about how the real estate market is not falling and how bad it is and how terrible our future will be. Get a life all of you losers who want an economic disaster to fall upon our country. Go USA, go!!!
Cool blog, but that house actually in Denver Colorado, not Arizona. Check out their website to see how desperate they are:
http://www.investorsint.com/proforma/Program-Under-1-Million.pdf
WOW! You can "buy" now for zero down and no payments for a year, but have "instant equity"!
HOLY Hell!!! What on earth are they talking about?
I thought this bursting bubble would end this type of insanity, not make it exponentially more insane.....
WOW!
Having a fireplace in the middle of the desert, priceless.
Searching RE on Craigs List Salt Lake City, a large percentage of the listings say something like the following -
Recent appraisal at 350,000.
Letting it go for 320,000.
Isn't an appraisal supposed to estimate the market value?
So WTF good is an appraisal?
I don't believe what it "sold for" or appraised at is an accurate valuation of real estate under today's rules. Right now its strict financial affordibility. Case in point my daughter was kicked out of her apt due to condo conversion 2 years ago in Orlando. Asking price of the Condo was 325k, it is now in auction (along with 10 others) starting at $139k. There was no appraisal, just some blood sucker developer setting his asking price at "at the market will bear". They did get some suckers to buy in (about 100 clueless morons). The condo price did not trade then nor now against the same SF rental. It is still cheaper to rent thanks to skyrocketing prop taxes and insurance in Florida. Until a modest house is again affordable by a working couple with regular REAL jobs, then purchase prices will continue to fall.
Not to defend corrupt and/or incompetent appraisers of which there are many, but an appraisal is designed to answer specific questions regarding market value at a specific point in time. Is the appraisal for a divorce, lending, listing price, an estate sale, an REO etc. The appraiser is supposed to speak to those questions in the appraisal when defining the Scope of Work. Real estate is not perfect market and even the most informed appraisal is little more than an informed opionion.
An example, a divorce appraisal is by it's nature litiginous. The appraiser knows that the value will be picked to death by two attorneys, a client, a spouse and a judge. Even with all that oversight, there is often a terrific discrepancy between two appraisals, providing an opinion of value about a specific property at a defined moment in time.
I guess my somewhat rambling point is that even without undue bias, client pressure, poorly defined markets, rapidly inflating or deflating values, fraud and bad data, an appraisal is at best, an opinion of value and oft a weak one at that.
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