Offer #6 Appraisal & Gas Update, and an Old Prospect Resurfaces

Offer #6 Appraisal
I went to my loan officer's office yesterday to pay for the appraisal, thinking that it would be done in the next few days. When I got there, the receptionist said they had already done the appraisal the day before. I was a little ticked because I was waiting on the word from my agent on the gas situation before I was going to spend anymore money on this property. However, I guess it worked out in the end.

I was a little put back by the appraisal itself for a couple of reasons. To recap, I had originally comp'ed the house at $135k (and that was being conservative). The appraisal from HUD, which was done last November, had the house at $112,000. They were basing their price on prior sales from last summer and fall. This appraisal was almost the same thing: $115,000. Again, they based their criteria on sales from last summer and fall. I was first upset to hear the appraisal came back so low, and was even more upset when I saw the method they used was almost EXACTLY the same as the HUD appraisal was. So, in essence, I wasted $325, because the appraisals were both done using the same criteria: prior sales from last summer and fall.

The little reprieve I got was that the appraisal has two prices: sales and market analysis. I am still having a hard time deducing where they got a final price of $115,000, because the comps they had were a lot higher (one was for $135k) - and this was after all adjustments were made! The market analysis price they had was $143,500, which is more inline with what I had. I shouldn't really worry too much about this appraisal, because of all the inconsistencies I see in it. My thinking is that they based the appraisal using my purchase price ($103k) as a weighing factor. I still believe the property will go for $130k easy, and probably even $135k. One thing they did do, which I thought was interesting, is deduct $10,000 because the house was in "fair" condition. I figure once I get it cleaned up and add the back porch light and microwave/vent, it would bring this appraisal up to $125k. Plus, we're getting into the spring and summer season when people generally buy houses, so I'm probably fretting over nothing.

Offer #6 gas Update
I talked with my agent yesterday about the gas situation. She said the person who handles the HUD properties for my area has to send the gas company two forms. The first is a form stating they (HUD) do in fact own the property now, and the second form is stating they (HUD) will pay the balance of the gas account. She said the first was already sent and the second will be sent 'soon'. She said that HUD will pay the balance, so I shouldn't worry about it. While I'm relieved, I'll be even more relieved once I find out they have paid it off.

An Old Prospect
It's amazing how some of these properties I've made offers on in the past and written off are coming back now. I found out from my agent that Offer #7 is back on the market. She doesn't know what happened to the original deal, but it fell through for one reason or another. I have to revisit the numbers, but I think I couldn't offer anything near their asking price of $95,000.