Financing in Somerset>Question Details

Homeowner, Other/Just Looking in Somerset, NJ

I am in process of refinancing my house. what best way to have the house apprised to get maximum value?

Asked by Homeowner, Somerset, NJ Thu Aug 18, 2011

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Good point Tina! Except in NJ that is no longer allowed. We are basically atthe mercy of the lender's own appraiser.
When it was allowed, appraisers used to stretch values to please mortgage reps and realtors, in order to get deals approved and gain their future business. That is a big part of the reason home prices were so artificially inflated back in 2005 and 2006, so it had to be stopped.
The only way I know of to maximize value is to look up comparable sales within 1/2 mile and check and make sure your appraiser chose the correct comparables in his report. If you find better comps, or newer sales, then definitely let the appraiser know about it (assuming they are true comparables), that used to work for me.

Jane
http://www.RealTerrific.com
1 vote Thank Flag Link Thu Aug 18, 2011
The lender you choose to refinance your home will hire an independent appraisor to appraise your home.They will use closed sales of similar properties from the past 6 months in your community and then make ajustments if necessary for square footage, location, condition, and structural upgrades or improvements. Decorative upgrades do not add value. If they can't find comparable sales in your community they will look outside , usually within a mile. The only way you can make sure it appraises for maximum value is to make sure it is in good condition and shows well before they come. If the appraisal comes out lower than you want you can request a 2nd appraisal which they will charge you for, but only sometimes does it turn out to be higher.
1 vote Thank Flag Link Thu Aug 18, 2011
As an unflattering commentary on appraisers, the best way to get the value you want on a house, whether it's higher or lower, is to hire your own appraiser.
Web Reference: http://www.archershomes.com
1 vote Thank Flag Link Thu Aug 18, 2011
Hi, Homeowner. the lender you go to is required to now order the appriasal company who in turns selects the appraiser to do the actual appraisal. You also need to know that all appraisal are subjective and primarily based on each individual appraiser'a professional experience, due diligence, and opinion. So, if your were thinking about hiring your own appraiser to give you an ideal of the value of your home, his "opinion" could be significantly higher or lower than the bank's appraisers. Again appraisals are subjective, and the bank is only going to accept it own appraiser's value.

Best and cheapest way to find out the potential value of your home before hand is to have a realtor do a CMA (Comprehensive Market Analysis). Although not an actual appraisal, if its done correctly, it can give you a fairly accurate expectation of what your home will actually appraise for. If you know any realtors, I would ask one to do a CMA for you. Its done via the internet, should take no more than 5 -10 minutes, and should cost you nothing (unless you're going to treat them to lunch) to do. Good luck.
0 votes Thank Flag Link Thu Aug 18, 2011
Dear Homeowner,
There are sevral ways to address this. a) You can hire an appraiser and get an appraisal on the home. b) Call me and I can send you comps of recently sold homes so you know the home values in your area. An appraisal or comps will give you an idea of fair market value of your home.
Web Reference: http://www.arunamettler.com
0 votes Thank Flag Link Thu Aug 18, 2011
Unfortunately yes, short sales and foreclosed properties are included as comps in the appraisal, but hopefully the appraiser will make note of any shortcomings the comp had. Let the appraiser know if the comp was sold short because it was unkept and was in need of repair, so he might make a note of it. If you 'd like me to email you recent sales in your neighborhood, email me at jmax123@aol.com, with location and basic info (house style, size, rooms) on the property.

Jane
http://www.RealTerrific.com
0 votes Thank Flag Link Thu Aug 18, 2011
All

Thank you for your inputs. Does short sale and foreclosed property included in the appraisal? There is a home that was recently sold for 207 ( last sale in my community) which I am kind of worrying that it will drop my home value.
0 votes Thank Flag Link Thu Aug 18, 2011
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