No Appraisal Home Loans?

Are there no appraisal home loans available?

My Uncle is living in a SFH that was divided into 3 units by the previous owner… He paid cash for the house at a good price and it cash flows well. He doesn’t plan to change the layout. But he would like to get some money out so he has some available funds.

I don’t think his place would appraise but I’m don’t much experience in this. Would a bank give him a HELOC or HEL?

When I get HELOC last time, bank didn’t go inside the house to appraise it. It was with Bank of America. YMMV.

I heard a guy I was helping to sell this home that after finding out it had an extra 1/2 bath, the bank wouldn’t blink at all.

How long ago was this?

Probably 2 years back.

For low LTV and a not too high loan amount, many Heloc lenders do not need a full appraisal. They just use the computer appraisal instead.

But for 1st lien Heloc, you need to ask the lender

There’s no loan on it now. I think my uncle just want some (any) amount that he can get… Thanks. I’ll suggest to him to reach out to some lenders and find out more details.

I like to think my Tracie is a good mortgage person. If you think your Uncle wouldn’t mind talking to her PM me for number. She speaks English, Cantonese and maybe Mandarin.

Many repeating appraisals are not needed at all.

Are appraisals required in Canada, Australia or other European countries? It’s a wasted expense and causing delays. I think this is a great move

The whole point of it is to protect the lender. If the lender says they don’t need it, then I guess it’s not needed. Appraisers better start looking for a new job. Imagine the over-bidding that’ll happen once it’s fully rolled out.

Appraisers are often idiots that live in double wide trailers in Tracey…They have little training and rarely know the local markets…They are paid $60k a year and have no business appraising $1m and above houses…They have never even been in these houses except when on the job…It is like having a waiter in a high end restaurant who has never eaten a decent meal…

yah. Every appraisal report i have read has had 1 or more serious errors. And the number always matches the purchase price or the refinance amount.

On this subject, since you indicated it is a low bar, would you say pretty much almost always that the subject property will sell for way more than appraised, every time or what percentage higher is a good gauge +/-? I am kind of going through this with a prospective buyer of one of my properties. I got the appraisal and I haven’t given him the number yet. He will probably scream bloody murder but what can I do, right? Blame the market, and comps!!!

I believe appraisals are a necessary thing but do we know if we got a person giving us the right value?

We were closing on our first home when we get a call from the lender indicating a second appraisal was needed. $300+ for it. What we got was an online type of appraisal, as if the guy just Google our address and found the comps around.

We felt economically raped right there.

Agreed, appraisals (when done right, on the spot, etc) give at least a hint or ballpark figure at best. At the end of the day, the marketplace speaks the loudest. Can be cruel. Can be quite generous. Can be almost like a starting list price really. From there, who knows where it goes…

Agreed. Buyer has a VA loan so he needs a VA certified appraisal I learned anyway even if he qualifies. Secretly, I am hoping he doesn’t…:grinning: Why am I playing games? Well, I have some good reasons to give this buyer a first shot, but that is about it. Shoot, I can’t find a replacement property anyway…

Ok, @LbJW, let’s talk 1031 exchanges…

  1. What is the best way to facilitate an exchange with fewest roadblocks? I am scared sheetless that I will not identify anything within 45 days and close within 180.

  2. Do you do reverse exchanges and while I understand that I will need to perhaps go with a hard money lender if I must go reverse exchange what are the pitfalls with that strategy?

Ultimately, my strategy right now is to try to work both ends of the deal. Obviously, I have buyers or will have no trouble selling, therefore, I am also looking for a private sale or a property that is not listed yet but closely held and perhaps up for sale at the right price by owner. I get it, I have to pay to play so I am willing to pay premium on the exchange property just to save some sleep and any hair left on my head. I figure I will get some capital gains savings later, so I have to expect to pay upfront.


Thanks for any feedback you can offer…

I will sell you something in Tahoe…what is the minimum to avoid boot?

No. At the end of 2011. We were afraid of losing our only chance to become homeowners.

Thanks for your reply.