Monday, November 19, 2012

New challenges.

Today brings with it new challenges and another interesting aspect of negotiating the VA home loan process.

The latest and greatest as of yesterday is that the appraisal came back and was approximately $12 thousand less than our contracted offer on the home. With a VA loan, the financing will only cover up to the appraised value on the home. So if I want to purchase this home, one of two things must happen now.

One would be to have the sellers lower their purchase price to match the appraised value, or two, have the appraiser consider other comparable properties within the neighborhood and surrounding areas and amend the original appraisal report with an updated value.

The challenge for any appraiser is to find the most appropriate comparable properties and utilize those to establish the most appropriate value for the selected property. The proper market area is a bit of a challenge for real estate professionals to determine sometimes with new properties and renovated ones springing up sporadically in an older, established neighborhood.

Take for example Tanglewilde, in the Westchase area of Houston. This is an older "established" neighborhood and there are quite a few properties inside of it which range in age from 1950 to 1980 as original construction dates. Throw in a few "investor" properties where a builder or ambitious consumer has decided to purchase and renovate one of these older, but very attractive properties.

Tanglewilde exists in the Westchase area of Houston, and offers many attractive neighborhood features which exist in great detail on the Wikipedia site dedicated to explaining the area. A link to that site is located HERE. 

I will await the results from the requested appraisal of value with nail biting tension as I want to be one of those Veterans who can achieve the goal of entering my home with no money down and minimal out of pocket expenses.

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