[5-DayForum] Homes with Little Equity

[Bill Effros]

Woody,

People are going to look to pin this problem on someone.  The appraisals 
were way off base, and everybody kind of knew it.  Now the banks will 
try to nail individuals for believing the appraisals provided by the 
banks.  I just wonder if somebody is going to point out that the 
appraisals harmed the individuals.  It were the banks that insisted on 
the appraisals.

Just a thought.

In good times when 5-Day Sales generally yielded higher selling prices 
than appraisers indicated, most banks and appraisers changed their 
appraisals to match the 5-Day results.

Bill Effros



Woody Hogg wrote:
> Appraisals are based on past sales and are an opinion of value.  As 
> long as the appraisal has valid comps it would be hard to prove 
> negligence.  When the market changes as it has in most places, the 
> updated data should reflect the lower value as a history of what has 
> taken place.  It would be interesting to hear what an appraiser might 
> think of the 5 day sale.  Sometimes they do not feel an auction is 
> receiving a fair market value and may reflect that in their comments.  
> Any thoughts?
>  
> Woody
>
>     -----Original Message-----
>     *From:*
>     5-dayforum-bounces+whogg=erawoodyhogg.com at mailman.howtosellyourhomein5days.com
>     [mailto:5-dayforum-bounces+whogg=erawoodyhogg.com at mailman.howtosellyourhomein5days.com]
>     *On Behalf Of *Bill Effros
>     *Sent:* Saturday, September 01, 2007 12:47 PM
>     *To:* How To Sell Your Home in 5-Days
>     *Subject:* Re: [5-DayForum] Homes with Little Equity
>
>     Aisha,
>
>     The 5-Day Method will still get you the best possible price, but
>     it is likely to be a lot lower than the appraisal you got when you
>     bought.
>
>     It is the appraisal that is wrong, not the 5-Day Method, and the
>     Method can't change that.
>
>     You can get the most you can get using the 5-Day Method, even if
>     your home has little or no remaining equity.
>
>     I wonder if people can sue appraisers?  Does anyone know?  Has
>     anyone tried?
>
>     The banks and appraisers really set up this mess, and people like
>     you were actually harmed.  I'd be very surprised to learn you
>     bought your Condo through the 5-Day Method, because the Method
>     produces a fair current price for both the seller and the buyer. 
>     5-Day Buyers should be able to turn around and sell their homes
>     for almost exactly what they paid, should the need arise.
>
>     Bill Effros
>
>
>
>     Aisha Williams wrote:
>>     This may be a silly question but how effective is this process with homes with less than 10% equity? Given these discussions of inflated appraisals, I suspect that my home has about 5% equity in it at this point. I did apply for a home equity loan and received a confirmation of that months ago.  Is the 5-day sale effective in this situation. I am selling a condo in Fairfax, VA which was purchased in the beginning of this year.
>>
>>
>>     -Aisha
>>     Life is short, Break the rules, Forgive quickly, Kiss slowly, Love truly, Laugh uncontrollably, And never regret anything that made you smile...
>>
>>      
>>
>>       
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