A few things have come easy for Justin Bieber: He became a superstar from a chance discovery via YouTube, he has a cool girlfriend in Selena Gomez and Forbes estimates his worth to be $53 million. This however, doesn’t all add up to an easy home buying process for the 18-year-old.
The latest news to come out of the the Biebs’ hunt is that the sprawling he has his eye on has been appraised for significantly less – $6 million less – than the asking price, .
This is bad news for any buyer, Bieber included, because a that doesn’t come near the fair market value can significantly slow down a purchase.
In May 2009, the was adopted to reduce the possibility of inflated property appraisals, the kind of thing that was a little too common during the real estate boom.
The goal of the HVCC is to get a independent, unbiased appraisal of the property, which in theory is good, but it forces banks to choose an appraiser through a third-party “Appraisal Management Company” or AMC, rather than their local, preferred appraiser.
Sometimes these third-party appraisers come up with a value that appears to be significantly off market value because they may not be familiar with the area or use appropriate . However, due to the HVCC, the must go along with the AMC’s appraisal, making it harder to buyers to sell or homeowners to .
So what can Beiber, or more likely Bieber’s team, do about it?
They have a few options:
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switch to a new lender and thus get a new appraisal
reduce the purchase price
depending on the deal, the buyer brings more money to close
