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house appraisal

Discussion in 'Chit-Chat' started by fj40crusher, Jun 29, 2005.

  1. fj40crusher

    fj40crusher

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    Anybody had this done lately? Getting the house reappraised today at 3pm. It's about as clean as it can be, yard is mowed, everything looks good. House is only 1 1/2 years old so it's still new as far as houses go. Homes in my area are skyrocketing in price so I am going to use that to my advantage and get it appraised to lower my interest rate.

    Not sure what the guy is going to be looking for. I know alot of it is based on construction costs, replacement value, demand, local market...etc. I just think alot of it is based on personal opinion, which makes me a little nervous. House looks nice but what if he just doesn't like how it's decorated? Does any of that factor in? Any last minute tips? Wife is a wreck.
     
  2. mabrodis

    mabrodis

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    If it's a newer home then I seriously doubt they will even come inside. Usually it's a drive-by apprasial (seriously, I'm not kidding), where they look at it from the street, basically to see if it's still there, they already know the sq feet and all that stuff and that's usually what they base the money on. I know our last appraisal the guy took his little measuring wheel measured the outside of the house, came inside, not to look at it really, but to ask us if we had a finished basement (we don't), if we have any hardwood floors (we don't), etc...he said it was funny how people would clean it all up, which made no difference anyway, since he is just comparing it to other homes that have sold. Usually an appraisal will list (and show atleast 1 pic) of houses that factored into the decision, like this home over here on 2034 Crap Ave, sold for $50 but this home over here on 455 Prissy Ave sold for $400K, etc...

    Our home was appraised exactly where we thought it would, since we had already looked at sale prices around and done some home valuation things online..

    Good luck..
     
  3. Riad

    Riad

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    it has nothing to do with decoration and all that. Appraiser solely goes by Common Market Value, other factors are: condition of applicances(ifthere's any) + flood zone factor + roof condition etc. basically IF there's any MAJOR damage to the house or the house is prone to any major disaster. That means values of houses in your area will determine your house's value. Not only that, refinancing appraisals are more conservative than selling appraisals, the difference can run upto $10K to $15K between these two types of appraisal.
     
  4. fj40crusher

    fj40crusher

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    He better come inside, wife will kill me if he doesn't. The place is spotless. If I knew it could be this clean I would have it appraised more often :D
     
  5. DenverCruiser

    DenverCruiser

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  6. Eric_FJ40

    Eric_FJ40

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    Ours was appraised yesterday morning (waiting for the numbers!).

    I had a three page list of improvements and upgrades - room-by-room - for him to look at. He absolutely loved the list and said that it made his job much easier.

    I listed EVERYTHING that we have done to the house since new - right down to the new knobs and drawer pulls in the kitchen.

    I got the feeling that that list will help a great deal.

    Eric
     
  7. mabrodis

    mabrodis

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    Hopefully...but then again you haven't seen the numbers.. :D

    The thing about it is appraising a house is such a iffy business, they compare it to other comprable homes that have sold, but maybe those homes were trashed, or maybe the buyers of those homes liked the neighbors so they were willing to pay more for that home than just any home of that style/size...

    The oddest example of home valuation I think is on a new home, you could essentially get a loan for almost anything because by definition the home is worth that much...because you are buying it for that much. So you see some new homes and say they can't be worth that much, but by the definition of appraisal, they ARE worth that much because people are buying them for that much, therefore that is their value.

    I know why they do appraisals, so a bank isn't loaning money out to a home that is worth less than the money loaned...but if someone wants to buy your home for say $300K, and is getting the loan paperwork and such, but it appraises for like $290K...how can it appraise for $290K, when your buyer is willing to pay $300K right now, therefore that IS the value of the house. Usually there is some leeway in those numbers, but I've seen places where friends had trouble getting loans because the home wouldn't appraise for that much, yet they were buying it for that much...guess the bank just wanted someone else to break the market lines of value, etc...

    Just seems the whole process is a bit flawed, mostly because there are no hard-fast numbers, it's all what will people pay, and that varies a ton, and can vary day-to-day, and especially season-to-season...
     
  8. fj40crusher

    fj40crusher

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    He came in, spent about 1/2 hour checking it out room by room. Measured, took some pictures. Had some interesting points. I don't have the numbers yet but he ballparked me on his way out the door. The number was about 40% more then what I paid 18 months ago. Of course, I stole this house. The builder lost money by the time he was done. If he broke even on it I would be surprised.

    I am happy.
     
  9. PolterGeist

    PolterGeist

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    Decoration ususally has more to do with "saleability" of a house, and less to do with the pure value.

    If you want to sell it, you can get more (And sell it quicker) if it's attractively decorated (in a popular fashion) then if it isn't, since people are willing to pay more for a turn key house that's nicely decorated and won't require them to paint it. But the "value" of the house will be the same to a bank or tax assessor.

    When selling, believe it or not, it's also better to show it furnished than empty. People get a better feel of how their stuff will look if they have yours to compare it to. And the fact it looks more lived in and less sterile helps.

    But for the sake of appraisal, don't worry about decorating.

    Steve
     
  10. OZCAL

    OZCAL

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    It's not too late to get a little more out of the situation. Do you want me to call you, leave a message on the answering machine, pretend I'm from the appraisal firm, and say you would have done better if there was a flat screen digital TV on the wall, more tools in the garage, a wet bar with a keg tap in the living room and less frou-frou girly decorations? :grinpimp:
     
  11. cruzer

    cruzer

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    when i was almost going to buy a house...haha... the house apraised for 1K over what i was going to buy it for...and so did my friends that bought the year before...its just another scam to get $$ out of your pocket and into theirs.

    Stew
     
  12. cruiserhead

    cruiserhead

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    All I did was a quick repaint of my house and it appraissed for $15,000 more than when we bought it.Maybe he liked the 40 frame leaning against the house and the engine block behind it.Seriuosly,it is the location and demand and what the house down the street sold for more so than condition.
     
  13. VTFJ40

    VTFJ40

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    I've been an Appraiser for 2 years now. Unless there is another house in your neighborhodd, that sold within 6 months, with the same improvements, and depending on your market, it won't be heavily considered. Sales comparison is the predominant value method.

    We usually say it helps to avoid an arguement (and make the homeowner feel better).

    Generally, you don't want to be the best house on the block. Whether it's size, materials, or improvements. Yer better off (value wise) having one or two bigger and better houses right next door.

    Also, in an appreciating market, the appraised value will always be lower than what you should list it for. So if you see houses right next door under contract for thousands over what your appraisal comes in at, don't be suprised.

    Good luck.
     
  14. VTFJ40

    VTFJ40

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    Appraising a new home in a subdivision is a joke. The builder supplies the comparables, and can tell you whatever prices they want to. You basically state in the report that you are going on their word?!

    And just because someone is willing to pay $300k for a house, doesn't mean the house is worth $300k to anyone but them. It will help the next appraiser in that neighborhood. This is what causes the appreciation clusterfawk of the past two years.

    We also work from the date of appraisal backward.
     
  15. camcruiser13

    camcruiser13

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    i myself have been appraising for a couple years. and what its worth is different from what someone will pay. that the #1 issue with home owners they just dont seem to understand.
     
  16. PHBeerman

    PHBeerman

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    Appraisals are a joke. Total waste of $400 It is about a 10 minute job, and it does nothing to evaluate the true value of a home.

    However, it is part of the good ole boy system that nickle and dimes you to death.

    Trust me, you will get appraised at whatever your lender told the appraiser to write down. I think this is a profession that you get your certification from that place that Sally Struthers does the comercials for.
     
  17. camcruiser13

    camcruiser13

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    false again. :cheers:
     
  18. mabrodis

    mabrodis

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    I hear ya that appraisers are sposeto be all legit and such, but sometimes the irony is just too much...example we bought a townhome, we were buying it for $135K, the appraisal came in...at...$135,500...how convenient, just exactly what we needed for our loan...but even at $135,500 it was BS IMO, after a bit of cleaning things up (but nothing on paper had really been changed, and no appraiser ever went inside the home) we sold the home 4 months later for $155K, and how convenient it appraised for that much now for the new buyers...yet no appraiser had ever even been in the home to see any repainting or anything we did...just seemed like total BS...
     
  19. FJ60-Hokie

    FJ60-Hokie

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    I am a loan officer in Carlsbad, Ca. I work with appraisors every day.

    They are just looking for structural integrity and curb appeal.

    As long as you don't have any cruiser engine blocks in the backyard or active repair work inside, you are cool.

    If you are in one of the states my company works in I might be able to help you with your refi. Even if it is just suggestions.

    There are a lot of crooks in this business.

    My work email is brad@dcsmortgage.com if you have any other questions.
     
  20. VTFJ40

    VTFJ40

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    Aren't you late for a Klan rally? :flipoff2:

    I did 2 today. 1 for $1000 and 1 for $1200. Took a little longer than 20 minutes though, and not your average appraisal.

    Federal regulators have just cracked down on lender pressure on appraisers. Lately, they don't even write down a value or provide a contract. Banks are trying to slow down the market. I'll make money off it til the bubble bursts.

    Now, the value depends on my mood, along with my fee. :D