All points lead to the same place, regardless of their justification methods. Lenders are using every trick in the book to limit their exposure…and who can blame them?

I am hearing agents all over the Country freaking out about appraisals coming in lower than “needed” to close. It is what it is regardless of why.

I wouldn’t say they’re tough. I’d say they don’t adequately account for kitchens, either positively or negatively.

In my first expert witness case I don’t recall the opposing appraiser making any deduction for the kitchen. It was a remodel from hell with a bizarre layout with the cabinets setting at all sorts of angles, and at least 3 different styles of cabinets, one of which was painted plywood cut by a skilsaw at other than right angles. Clearly that limited what the property was worth, but there’s no little box in the appraisal form for remodel from hell.

Expensive remodels prior to selling are clearly no longer the order of the day in any way, shape or form, unless they improve the “real estate”. Styles change. So “new roof” – yes. That improves “the real estate”. New granite counters? Some like light, some like dark, some like something other than granite.

Limiting the cost of improvements is a wise choice, especially in this market. What we are seeing right now is that buyers may in fact be willing to pay an extra $75,000 for that WOW kitchen remodel, but the banks know in 10 years it will be “dated” and are not willing to finance these improvements. Appraisers are tough…and they are not giving much for these improvements in the appraised value, regardless of how much the buyer is in fact willing to pay.

The buyer will need to have cash to pay for those improvements, over and above the required downpayment amount.

- It seems there is no price point without tradeoffs, unless someone builds the house for themselves.

Even then. Bill Gates’ house – I remember that, after he built it, he had to remodel it before he moved in!

- Unfortunately, housing slow downs tend to exacerbate the negative points of a property.

Yeah, I think that’s true. When you have people being outbid on a home a week, the list of “must haves” gets shorter.

- And yet it is hard to get almost any seller to list the cons of their homes. Every negative seems to be a positive from the seller’s standpoint.

That’s true of everything that’s for sale. Remember that pharma ad – after the list of side effects (this product may cause runny nose, itchy arms, nausea, IBS, incontinence, impotence) a sprite flashed across the screen with a voice over proclaiming, “A Wise Choice!”

Sellers sell benefits. Cold food, warm beer isn’t a proven winner!

Isn’t it insane when people have to make tradeoffs when buying at $1.2 million? It seems there is no price point without tradeoffs, unless someone builds the house for themselves. Perhaps with prices receding this will be less the case, but I remember having a hard time finding a house with 4 bedrooms, with all the bedrooms on one level, for $1.2 million in Kirkland awhile back.

And yet it is hard to get almost any seller to list the cons of their homes. Every negative seems to be a positive from the seller’s standpoint.

I sold a fabulous house on Issaquah-Beaverlake Road in the Fall of 2007 that was an enormous house for the price. Big lot with a huge setback and circular driveway. Still, I’m gladd she sold it when she did (and I’m sure she is too.) It was not an easy sell then, and would be twice as diffcult today.