Closed sales in Blackstock over the last year ranged from 145-280 with a median of 232K. Three basement sales - 11/11 @ 280K with a finished basement incl a BR/B/FR and 9/11 @ 245.4K with a partially finished basement. 2/12 saw a sale for 264.5K and oh yeah - it was NEW.
The data is also pretty clear that this community has nosedived in value. As for foreclosures, those are common in this market, they will be used if they are comparable - and many are. I'm a foreclosure appraiser and I see many of these homes getting paint, carpets, appliances, etc so they can complete with the existing inventory.
So after review of the data, I agree with this not being a "good" appraisal. The idea that this home is "worth" 265K with an unfinished basement in an area with foreclosure inventory and new homes still around seems unrealistically HIGH. I'd love to see something tangible to support this or even a higher price - it won't be found.
The market tanked because of irresponsible lending and owners that could care less. The damage has been done, values are what they are based upon the current data.
What's supposed to happen, press restart and erase the last 10 years?
Case-Shiller is far far too broad to use for anything local and Robert Shiller is far from sold on any "recovery". The bottom line is that many don't like appraised values, there's nothing that can be done if the data is there. Cost does not equal value - opinions do not equal value.
If you think it's challenging now, wait until spring - http://hankmillerteam.com/2012/10/24/looking-ahead-to-the-sp
I am not an appraiser but looking at your question and with the information you provided, I would say the appraisal is accurate. It seems your appraisal came in above the average sold price when comparing to other homes sold in your neighborhood. I'm an optimist, Here's what I found:
There has been one sale in your neighborhood in the past 90 days and there are two homes on the market. The home that sold was a 3450 sq.ft, 5 BR, 3 BA, home on slab. It sold for $248,699 or $72.00 per sq. ft. There are two other homes for sale in your neighborhood but appraisers and REALTOR's cannot factor those homes into the appraisal or Comparative Market Analysis until they sell. Appraisers and REALTOR's Compable Market Analysis are based on homes sold. But for this excercise I'll list them here for you just for your information. Those two homes have a listed price as follows:
1. 2761 Sq ft. 6 BR, 5 BA Full finished basement listed for $399,900 or $144.00 per sq. ft
2. 2513 Sq. Ft. 4BR, 2.5 BA Full unfinished basement listed for $275,000 or $109.00 per sq. ft.
(These homes are way overpriced)
Your appraisal came in at $265,000 or $91.00 per sq. ft. There have been a total of five homes sold in Blackstock Mill since 3/30/12. None of these homes sold for more than $248,699. The highest price per sq. ft. sold was $86.00 per Sq. Ft. Looking outside of your neighborhood, homes that sold in the past 90 days sold for an average price per sq. ft of $106.67 per sq. ft.. There was one foreclosure included in that average, and it sold for $116.00 per sq. ft.
Your home appraised higher than any other recently sold home in your neighborhood. There are formulas that take foreclosures, ammenities, condition, location etc. into consideration that appraisers use to place value on a property. They don't always go on comparables but may factor in replacement cost too. The neigh sayers will say that we are still in a declining market, but I believe that the market has bottomed and is in recovery. Last year homes in my area, in Cumming, sold for an average of $72.00 per sq. ft. this year over the same period the average sold price per sq. ft. is $86.16. That does not appear to be declining market. Will there be more foreclosures? Yes, but I don't believe it will be what we have seen in the past couple of years. Will the market decline or appreciate? No one has the crystal ball, but looking at the historical data it appears we are in the infancy stages of recovery.
Rest easy, as you can see, your appraisal seems to be great for a re-fi, but word of caution, if you are thinking of selling it, it may not sell for that price, and another appraiser may not appraise it that high. If you are just doing a re-fi to reduce cost, go for it, if you are looking to take equity out, it is NOT a good idea until there is more recovery time.
If you have any questions please feel free to contact me.
Ken D'Ademo, Associate Broker
Keller Williams Chattahoochee North
So, you have encountered the 'Bank Fix' in the appraisal process. Of course appraisers are recognized as being independent of the banking system but the reality is quite different. If the bank does not like the appraisal they receive there are ramifications the appraiser will have to deal with.... economicly. The bank paying for the appraisal dictates what are comps and what is not. If you've ever heard of selection bias, what you describe is what it looks like.
Now, it has been my observation that middle class America has not yet come to terms with the reality the banks have truly stolen 40% of their wealth. That means your real estate has lost 40% of it''s value in the past 8 years. That means that 1.4 million dollar waterfront is now down to 1 Million!
The bank's imposed rules placed on the appraisal companies will insure the values stay low. If your home is worth the amount you state AND you can substantiate the value, then a buyer will be willing to come to the closing with a pile of cash. I've done it many times. Homes ARE worth more than many appraisals indicate. The home owner now must choose. Kick the deal to the curb, counter, get appraisal contingency waived, or take the hit.
Just wait till the 'too big to fail' health insurance companies arrive, they'll make the big banks look like sand box toddlers.
The true value of a home is what a willing buyer and willing seller will pay. That's what we've always heard, but as you are experiencing, and others are agreeing...it is worth what the bank says its worth.....and so many agree.
And none of the culprits went to jail!
Additionally, the banks are looking for reasons not to lend or refinance, in my opinion, and they are going to err on the low side in values. The days of easy money are behind us, especially if there is little equity in the property.
Katherine L. Morrison, Realtor
Team Realty Group
That exacerbated the problems.
In many areas, Foreclosures account for 70-80% of the market; they cannot be ignored.
Are Appraisers expected to pick a number out of the air, that you wish the house was worth?
YOU are not a factor here!
The Bank is the factor: they want their investment to be secure.
Who determines what a car, a TV or a House is WORTH?
YOU do, when you shell out your money for it.
What YOUR house is worth to you, is different than what it is worth to a Buyer.
The APPRAISAL is the most accuate opinion of a Home's Worth.
When you are located in a subdivision, at least 1-2 of the comps should be from there.
If you were selling your home today, those foreclosures would in fact be your direct competition. Therefore, they cannot be excluded in your report.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
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Accurate? Of course they are accurate.
Subective? You better believe it.
If you expect your version of fair to be the version of fair that your lender chooses, then you truly have another thing coming...