anonomoose
New member
Appraisals had a big part in what happened. ... Your bare costs to build new - may not be below the appraised value in todays market. Many areas that is the case, nothing new can be built that appraise high enough.....
You were going good til I read this one. Clearly you mean that it costs more to build...assuming the builder can make a minor profit, than it will appraise for. If you can't build and make money, why do it?
I find nothing wrong with values increasing and a party paying what the property is worth to HIM....that is a good thing and a supply demand thing in action.
When a bank kicks an appraisal back several times til it gets where it wants to go....call this anything you want, but controlling the market comes to mind with me. One bank says....go, and another says...."are you nuts?"
Anyone who is in the home loan business right now, knows absolutely that the appraisal is EVERYTHING...and is a deal maker, or breaker.
The days of a willing buyer and a willing seller coming to terms with a deal and then heading off to the bank to go thru the motions are over. The banking industry controls....and they are NOT going to be caught with their pants down again if they can help it at all.
I fear it will be a long time before this all goes back to normal...as we used to know normal.