Progress! (with finger's crossed)

It pays to read the fine print! You may have seen my rant about the screwed up appraisal system. Last time we just went with the flow, settled for the next guy on the list and, not unexpectedly, got a rediculous result from an inexperienced, unqualified appraiser. Unwilling to "settle", we struggled to understand the process. Finally, we managed to get a written copy of the underwriting guidelines that the bank used to guide the process. Despite all the stories we had heard about arm's length (bankers can't even talk to the appraiser or know who they are before hand), we found a way to be sure we got a qualified appraiser. It's called a "field appraisal". So long as we are willing to pay for two appraisals, we can hire the first one ourselves! By then, the work is done. The thinking is done. With the first appraisal done by a certified professional, even if a beginner gets assigned the field appraisal they won't get it wrong. Well, the first step is done! We got a good appraisal when we hired a qualified pro. Our appraisal is still on the low side of where it might have been two years ago, but it's good enough to get the construction started. My fingers are crossed. We'll know in about a week if our plan worked.

ARRRRRRGGGGGGG!

This is frustrating! Now we're all dressed up and nowhere to go. We thought we were doing the smart thing; selling our old house so that we would KNOW how much we got out of it. That way we wouldn't have to worry about selling it at an unfavorable time/price once the new house is complete. Little did we realize that the new banking/appraisal climate would prevent us from even starting the build! 5 months into this little rental house and we're still suck on trying to get an appraisal.



here's the deal. Banks have money to lend. We're qualified borrowers. We've got a good set of house plans. We've got a good builder who is HUNGRY for more work. Building materials are at a temporary low cost point and interest rates are at an all time low. Why not build now? Start today? Start tomorrow? Why not????



Because we got a "Gomer" for an appraiser who thinks he must appraise a $400,000 build as though it were an FHA (starter) house. Because of abuses that led to the housing bubble burst, the new rules prevent banks or agents from picking (or even talking to) the appraiser who will get the file. It's luck of the draw. If the next guy on the list is an inexperienced kid, or a near retirement age person just putting in time, we get stuck with a bad appraisal. That's exactly what happened! The guy whose "turn" is was is a guy who couldn't make it as a builder or a real estate salesman, so he started doing appraisals. He's got his FHA checklist and by golly he's gonna do an appraisal. Granted, there are very few comparable sales in the south part of the county. Granted, we have some costly features designed into the plans. But my goodness... how can the guy think the house would appraise for $150,000 LESS that the cost to build it? This is Blount County, not LA or Florida or Las Vegas. I've given him four comparable sales, in Blount County and he won't use them 'cause you have to drive past 18 miles of older farmhouses before you get to those subdivisions. Worse yet, the "Greenest" feature of our design, (passive solar design and orientation) counts against us. (I think this Gomer probably thinks Global Warming is a hoax too!) He can not or will not count the south facing walkout basement rooms with poured-in-place (thermal mass) concrete walls as bedrooms. The net of that unenlightened approach is that he's trying to appraise a one bedroom house! Never mind that we have a full suite (2 bedrooms, full bath and a second kitchen) downstairs. How ridiculous can you get?



So... what's next? Our original goal to downsize the floor plan and upgrade the quality and performance of our home fall victim to Gomers and the status-quo. We've redrawn the plan to put two more bedrooms upstairs. We'll have to leave the basement suite unfinished. We'll drop off other Green features to try to trim the cost and maybe, just maybe, we'll get a professional appraiser this time who recognises that he can (and should) make adjustments for the quality of a building, not just operate off of a checklist. I'm keeping my finger crossed!