Real Estate Way Overvalued on Appraisals?

purdue81 · **Posted:** Fri Oct 10, 2008 8:08 am

Tiger1 wrote:

When we bought this house 8 1/2 years ago, it was selling for $51,000. We took out an additional piggy-backed loan for needed repairs, as this place was empty for 2 years, a rental for over 20 years, and was unlivable. Our total loan was for $68,000 which was one heck of a bargain. We wanted to refinance back a couple of months ago. The mortgage company told us that the house was only worth about $60,000 even though we have rehabbed it, landscaped it, and made it one of the best looking houses in this neighborhood.

That's some bargain!!! You should be Secretary of the Treasury with your financial acumen!! You bought an abandoned old dilapidated house in a bad neighborhood in a decaying, declining industrial city, and poured money and sweat into it to make it the one of the best looking houses in a neighborhood of homes that are being torn down because they are public safety hazards? Brilliant!!

Tiger1 wrote:

The housing values here are the pits. Houses that were selling in the $90-$110,000 range just 5-6 years ago, are going for $1,000 at auction, or a regular sale for as low as $17,000-$30,000.

Looking at the house values, and seeing what the costs were to refinance, we liquidated some assets, payed the mortgage down to $38,000, which got rid of the PMI. At our current house payment, we will have this place paid off in 5-7 years. At that time, hopefully the housing market will have rebounded enough, so that we can realize a profit from our house, or at the least, break even. In 6 years my Honey can get his Social Security, and we plan on retiring. All the kids will be grown and gone by then, and we certainly will no longer have a need for a 10 room house.

Your retirement planning is pure genius! Realize a profit from your house? HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!

Do you understand "profit"? HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!

You couldn't sell that house now for $38,000 much less realize a profit, and you won't be able to in 5-7 years either. You'll be stuck in that house in that crummy neighborhood dodging gang-bangers bullets until you die.

purdue81 · **Posted:** Fri Oct 10, 2008 8:13 am

Tiger1 wrote:

I need just a touch of cosmetics on the outside of my house, and some on the inside. IF we could buy that lot next door, which looks like an impossibility, I would put in a gazebo and a small fish pond. Since I know we are going to be here for at least 6 more years, I want all the comforts I can afford. I WILL NOT take out a loan for absolutely anything, seeing the financial climate. It will be cash as we go, or no go. :twisted:

It's too bad for your daughter that you aren't as willing to enroll her in a safer school and provide her with a better education as you are to get all the comforts you can afford - for you.

purdue81 · **Posted:** Fri Oct 10, 2008 8:20 am

Mirage wrote:

mike3775 wrote:

Just touching up the house increases value, so I can see why I find it hard to believe some in hammond are worth what they claimed

but others are kept up nicely as well

As Tiger and I have been saying cash is king today. Some appraiser my claim the values are much higher than current actual selling prices because they are working from previous historical data, as in before credit all but froze even for better qualified applicants. And despite the monstrous Federal bailout so far the freeze is only showing mild signs of thawing.

Credit is not frozen even for better qualified applicants. I had no problems whatsoever securing the financing to build an addition on my summer place, though I suppose you Hammsters could argue that I'm not better qualified than you - I'm MUCH better qualified than the typical Hammster. Construction will begin by the end of the month and will finish by Spring of '09 - just in time to enjoy another summer of long weekends at the lake.

purdue81 · **Posted:** Fri Oct 10, 2008 8:25 am

Tiger1 wrote:

If I were you, Mike, I wouldn't put more than $50,000 in each bank, just to be on the safe side.

IF you had $50,000. Of course, you don't and never will. If you did have $50,000 would you take your daughter out of that war zone and enroll her in a decent school or would you spend it on more comforts for you?

Tiger1 wrote:

I don't trust FDIC either. It's better to lose a little, than a lot. Make sure you keep some cash, and any gold or silver in your safety deposit box, also. That way, even if the financial walls come crashing down, you will get acess to your box, and that might be a financial lifesaver.
In addition, get totally debt free, if possible, or at least pay off everything you can, like charges, car payments, etc, and try like heck to pay at least a big chunk on your mortgage. Be very frugal in regards to new purchases. If you absolutely do not need it, do not buy it. The time is to pay off as much as possible, and ride out the financial storm. It is going to get worse, not better. I do not see a recovery for at least a couple of years, no matter who gets in as president.

Words from an impoverished old woman. You've already proven that you have little, if any, financial knowledge at all. Anyone who would take advice from you is a fool.

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Real Estate Way Overvalued on Appraisals?

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