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[icon] I got up early for this? - Patti
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Subject:I got up early for this?
Time:01:05 am
When the appraiser was here yesterday, I jokingly referred to him as the bad news fairy. He laughed, but said he's been telling a lot of people they're underwater.

Well, I heared my appraisal number today, and I was displeased. It came in $25K under what I'd pessimistically expected, and $50K under what I'd hoped. My loan agent said that appraisers are being extremely conservative right now, and that the actual market value was probably much higher. Still, seeing that number was a bit of a surprise.

In practice, it doesn't really make much difference to me-- I have more than enough equity to refinance at a rather favorable rate. But still, wow. That number was like $100K below what I could have sold for last summer. What a reality check.
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rmd
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Time:2008-04-04 12:01 pm (UTC)
yikes.

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adb_jaeger
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Time:2008-04-04 12:13 pm (UTC)
and that the actual market value was probably much higher

I'd believe there are home with offer prices in that range.

That's different than actual sales.

America has not yet even come close to finding the clearing price for real estate.

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wild_irises
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Time:2008-04-04 03:09 pm (UTC)
I don't see it that way. You're living in a place you like at a price you can afford. You didn't buy it as income property. The only time its value really matters is when you sell it, and then it only matters if you are selling it because you need the money for something else.

My house is worth the following to me: a good place to live, a low monthly nut, and an easy walk from BART. Anything else about its value is subject to change at any time (especially since we don't carry earthquake insurance).
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adbjupe
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Time:2008-04-04 03:35 pm (UTC)
I completely agree with wild_irises here. The number only matters if you are going to sell it or if the value is lower than the mortgage company will tolerate.

Besides, you live in a area with highly volatile housing prices. Swings like that shouldn't surprise you.
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wild_irises
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Time:2008-04-04 04:57 pm (UTC)
You know, as I wrote this comment this morning, I was thinking, "Okay, now Andrew can come in and tell me why I'm wrong." On this topic, your "I completely agree" is very gratifying.
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prock
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Time:2008-04-04 04:14 pm (UTC)
This is a fundamental difference between housing stock, and stock stock. You just can't live in a paper house. The utility benefit is huge, and the arbitrage cost is massive - 6% plus double moving expenses.
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whipartist
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Time:2008-04-04 05:06 pm (UTC)
As it turns out, the value also matters when you're trying to pull cash out of a refinance and keep the loan under 60% LTV. It's not a huge difference, I'll grant you, but it does matter a little bit.
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prock
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Time:2008-04-04 04:11 pm (UTC)
Welcome to the housing bubble. East Bay has been the hardest hit of the Bay Area.
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[icon] I got up early for this? - Patti
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