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Show 6 FHA appraisals ample, to a class he took at the University of Utah. In the class were 30 appraisers, each with 10 years or more experience. When, during the final exam, students appraised a Salt Lake City house, each of the 30 arrived at a different price. Jim Eckels, vice president of Western Mortgage Loan has similar thoughts. Appraisers are always too high or too low, he says. "1 continued from page 1 have found FHA is well in line with the conditions of the market. What are the horror stories, then, and from , whence do they come? Ward tells of a house in Granger, listed for $33,000. The buyer offered $33,500. FHA appraised it at $30,000. Another house on Imperial Street, in a quiet, residential, Salt tree-line- d time low being $1,000 or $2,000 off on a $30,000 or $34,000 house. Lake neighborhood, was appraised by FHA at $27,500 and reappraised at $29,000. But the buyer wanted to pay $35,000. Finally, Ward says, American Home Mortgage appraised it at that price, and made the loan. wasnt house That Another lender at the same institution is more favorable. FHV is more often low than high, says Scott Dean, who has been loan officer there for two years. By low 1 mean about $500. During the last few months fewer appraisals have been low, he adds. worth more than $29,000, states FHAs Romney. He $135,000 is robbery. describes the house as not more than 800 square feet, Common sense built in three different stages, the first being about 60 years It is a lovely piece of old. property, and the property and for a $27,000 pay $35,000 Regarding FHAs praising alone is worth over $20,000, If 1 had bought it 1 he says. would have torn down the house homes we use mainly the market approach, tempered slightly by replacement costs and income potential. For new construction we use the market approach, tempered by replacement and capitalized income. Generally, we use the market approach coupled with common sense, he continues. The market is infected with a frantic attitude today. People have a very strong desire to buy houses. But to explains: methods. ap- house that is robbery. -- Real estate agent Mike Continued on page 24 Romney For existing started over again. Outdated info In contrast with neys convictions, Rom- however, lenders at a few mortgage companies, who deal with FHA most of the time, say off the record that FHVs information is slightly outdated. They base their appraisal on replacement cost, says one such lender, but they dont take into consideration there is no land available on which to build in much of the city. One lender at Valley Mortgage says during the last six months FHA appraisals have been low about half the Now Open SEVEN DAYS A WEEK French Country Dining Nightly Brunch on Sunday 1 for Phone Reservations 942-175- It all starts with a clean carpet. 0(OkAwna ofl CARPET CLEANING PHONE DEE COMMERCIAL & RESIDENTIAL MOBILE TRUCK UNIT 466-37- 21 Your image is important. . . HAD KNOWN ABOUT CONCRETE, THEY WOULD HAVE USED IT. business backgrounds space planning remodeling carpeting drapery Lyngle Bros. Commercial the ages. interiors wall coverings accessories furniture interior design long lasting durableno maintenance better resaleMower insurance We have 50 years experience in the concrete business. Both the buildings we construct and the materials we sell will last through Suit .W0 Smith 500 West LakcCilv. Utah Ml 07 (KOI)2bh-2M- l M0NR0C Congratulations to LITTLE AMERICA on the completion ot their new concrete building. READY-MI- X PRECAST - PRESTRESS SAND BLASTING-GRISPECIAL SANDS - GRAVEL ASPHALT SLAG SALT LAKE CITV. UTAH Mlio T 1730 BECK STREET P.O. BOX 537 01 : . 3S9-370- 1 |