I bought a home out of foreclosure in 2009 and the appraisal came in around $130,000. I fixed up the house and rented it out for the last three years and now trying to refinance it at a lower rate. I got the appraisal back and it was $104,000. Looking for recommendations on what I can do to fight this, I appreciate any advice.
Low Appraisal
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Cyclonepride
Thought Police
Wow, that does seem low. I could see if the previous appraisal was from six years ago or something, as they used to do the wink-wink how much do you need it to be worth thing.
I looked at the other houses that have sold on the street in the last two years and there hasn't been a house below $140,000. In the last decade there hasn't been a house below $110,000 on the street.
It all depends on where you bought the house and it's location. In some markets the bottom of the market came well after 2009.
Some appraisers are just idiots. It doesn't take much intelligence to get certified.
I tried refinancing earlier this summer and my appraisal came in at 20k below what I paid in 2010. The appraiser just set it at the same level as the only comparable he could find even though I have been in the other condo and know my unit has at least 15k of upgrades over the other (hard wood, washer/dryer, granite countertops, lofted ceilings, premium appliances, etc). Go somewhere else and hope you get a better appraiser or look into how much PMI will cost if that doesn't put you underwater. PMI on my place was only going to be an extra 40 bucks a month and I would only have to pay it around 2 years so it was a much better deal than staying at 5.25%.
I tried refinancing earlier this summer and my appraisal came in at 20k below what I paid in 2010. The appraiser just set it at the same level as the only comparable he could find even though I have been in the other condo and know my unit has at least 15k of upgrades over the other (hard wood, washer/dryer, granite countertops, lofted ceilings, premium appliances, etc). Go somewhere else and hope you get a better appraiser or look into how much PMI will cost if that doesn't put you underwater. PMI on my place was only going to be an extra 40 bucks a month and I would only have to pay it around 2 years so it was a much better deal than staying at 5.25%.
Iowa City and the value of homes in the area are steady. Had another investment property refinaced which is .05 of a mile from this property and it was up 10% from the last time. Both were appraised in 2009.
you should have a copy of appraisal, where was appraiser from? was the appraiser out of their typical territory and not know your market? this happens alot with appraisal management companies. get an appraiser that will do appraisal for lowest fee, hence they do a poor job for a low fee. research the sales the appraiser used. drive by the sales and compare them yourself. look at the adjustments, credible or not.
if you have a friend in real estate business ask them to look up sales data from MLS
this should get you started.
if you have a friend in real estate business ask them to look up sales data from MLS
this should get you started.
Could be the time of year too, going into the winter in a northern type location is normally going to cause a lower valuation. Who's appraisal was it when you bought it at FC sale? I'm assuming it was at a FC auction/sheriffs sale and not a bank sold REO? If it was the bank's appraisal I would start with questioning that valuation, if it was yours, I'd try to find the same company to appraise it again.
Fight what?
The comparable sales on the new appraisal are probably for the last six months of sales in your neighborhood
The comparables are directly from the ASSESSORS WEBSITE OR RECORDS
The bottom dropped out of the housing market the last three years. People are dumping their homes, or they're foreclosing
Those low sale prices the last 6 months in your neighborhood directly affect the value of your current home and its' market value
There are NO guarantees you'll recoop any $$$ you put into your home in the last three years. Prior--the best way to improve the market value is to ADD SQUARE FOOTAGE...ala a new 4-seasons room.
Hey I painted my bathroom!!!!! The market value should go up $1000!!!!!
uuhhh. no
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Two houses in the last six-months have closed on the street. One for $172,900 and second for $140,000. In last decade no house has sold for less than $105,000.
Don't argue with Jamby, the world is ending, it's always ending, it's just a matter of time.
That's where you should begin your appeal. That said i'm sure the comparables went farther out than just the street.
Appraisals are a crapshoot though.
