Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/17/84; site mhuxl.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!mhuxn!ihnp4!mhuxl!daw1 From: daw1@mhuxl.UUCP (WILLIAMS) Newsgroups: net.consumers Subject: Selling price vs appraised value Message-ID: <439@mhuxl.UUCP> Date: Wed, 8-Jan-86 11:51:07 EST Article-I.D.: mhuxl.439 Posted: Wed Jan 8 11:51:07 1986 Date-Received: Thu, 9-Jan-86 02:59:31 EST Organization: AT&T Bell Laboratories, Murray Hill Lines: 34 This is in reference to the articles about "no money down" and "be a credit card millionaire" real estate deals. Someone said that the house would be appraised at the price it was sold for. But... --------------------------------------------------------------------- What does selling price have to do with value in a case like that? I can certainly appreciate your wife's desire to stay away from someone involved in one of these strange deals, however! I took a college course in real estate and the appraisal process is fairly straight-forward: Let's say I am looking at a house that someone is selling for $100K. Let's say the guy is basing his asking price on an appraisal he has in his back pocket that says the house has an appraised value of $98K. So I go up with a suitcase full of cash and buy it for $50K. Then I want to get it appraised for some reason, so I call your wife. On what does she base her appraisal? If I don't say a word she should arrive at a value of about $98K, give or take the normal variation of the appraisal. This would be based on equivalent homes recently sold, reconstruction costs, and whatever else you base it on that I can't recall right now. If I do say that I paid $50K, why should that change her bottom line value? What if I bought the home at a tax sale for $1000? Does that mean it is only worth $1000? This is not a flame! But please answer and enlighten us! 1 1 1 1 2 1 Doug Williams 1 3 3 1 AT&T Bell Labs 1 4 6 4 1 Reading, PA 1 5 10 10 5 1 mhuxl!daw1 1 6 15 20 15 6 1