Home Selling in Gulfport>Question Details

Philip Klube…, Home Seller in Gulfport, MS

My home appraised for 120K in October 2010. In Feb 12 it appraised for 66K. What gives?

Asked by Philip Kluberdanz, Gulfport, MS Sat Mar 3, 2012

Both are professional appraisals, both show accurate comparables. How did we lose 45% of value in 14 months after 20 years of steady if non-spectacular growth?

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Phillip,
I understand your confusion. Like Damion said our area hasn't seen drops like that in the value of homes in such a short time period. I thought of only one other thing that may have caused this problem. In that time period we saw a lot of foreclosures hit the market. It is possible that in October your area didn't have many of these foreclosed properties. By February there were a lot more foreclosures on the market and possibly more in your area. The banks were so overwhelmed with foreclosed properties that they were pricing them low to move them. The influx of foreclosures, although higher than normal, isn't as bad now unfortunately though your appraisal will still show them as comparable sold homes and this may continue to effect the value of your home.

Teresa
0 votes Thank Flag Link Sat Mar 3, 2012
Our area did not have these type of declines. It is hard to say why your appraisals showed these dramatic differences in that time. It is possible that you had one appraiser trying to "make" value for a sale or a refinance and the second appraiser may have been over-cautious. There really is no telling without seeing both, comparable homes used, etc. There really is no accurate answer anyone here can give you without a lot more information. I would suggest bringing it up with the new appraiser or getting another opinion.
0 votes Thank Flag Link Sat Mar 3, 2012
Linda's answer is a good one. Many areas of the US lost these kind of percentages. Real estate can lose value as well as appreciate. Usually, it is the latter and usually when it loses value it is not so extreme. Do not discount the possibility that one appraisal or the other can be "off". They are made by humans and always are subjective to some degree.
0 votes Thank Flag Link Sat Mar 3, 2012
Good Morning Philip. While that sounds like a big spread and it may be a little extreme, it is not uncommon. I'm not familiar with Gulfport, MS, but I can tell you that your home's value is based on what buyers are willing to pay for it. And... in this case, what the bank is willing to give a buyer to purchase your property. They have to look at it from an investment standpoint.

Let me give you an example. If you have two identical homes, all things being equal, and one is a conventional sale and the other is a short sale and one is priced at $200,000 and the other is $150,000, which one are you going to purchase?

My sympathies go out to you if, in fact, these are accurate appraisals and you are a victim of the economic factors in your area. Check with your local Realtor® and ask them to do a market analysis for you to see what is going on in your neighborhood. If the CMA produces a big discrepancy, it might be worthwhile to talk with the appraiser or get a new appraisal.
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Sat Mar 3, 2012
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