Hi Susan,

There has been a drop in prices of about 10-12% in Bensenville and surrounding areas as well. The value of your home probably has dropped some in the last two years. However, make sure that the comparable properties that were used in the appraisal are good comps. Some appraisers are not using the best properties to compare houses. The houses should be in the same location and in the same condition. I have had clients tell me that their house was compared with houses that need rehabbing or even in teardown condition. Location plays a part in pricing as well. It sounds like you have done two appraisals with two different appraisers. The first one may have been too high to start with. You should have someone check both appraisers reports to see if they are in the right price range.

It is probable that the 470K was too high then and that the 290K is too low now and the reality is that it may be worth about 9% less than whatever it was worth 12 months ago. Appraisals are just an educated and certified guess of what it could sell for. They can be all over the place, just like asking 10 buyers what your house is worth and then asking 10 neighbors what it is worth.

I compared 1st Q/07 to 1st Q/08, Bensenville, Single Family. MLSNI (now MRED) reports the following:

1/01/07- 3/31/07 - Average Sale Price 291,184, Number of Sales 26

1/01/08- 3/31/08 - Average Sale Price 236,700 , Number of Sales 11


Hope this helps.

If you would like the appraisal reviewed, please call.

Susan, keep in mind that an appraisal is an "opinion" of price. It is based on sourounding comparables sold in the last six months of a given time. Not knowing the specifics of your home it would be difficult to speculate on why such a big price difference. Look at your appraisal report to see what comparable homes were used in the appraisal, and what adjustments were made. Sometimes using a comparable from a particular dividing line in a town could make the difference, if the appraiser is not familiar with the area. Admitedly, Bensenville has been affected not only by the changing real estate market but also by the homes sold to the city of Chicago due to the O'Hare expansion project. I have checked the "average" price of homes sold in Bensenville in the given 6 month time frame for each appraisal, and do not see a percentage drop. This information is not enough however to make a descision on your particular home.

Yes there may be a difference in appraisals predicated on the purpose. Although this shouldn't be the case in the real world it is. Yes, there has been a tightening of the belt if you will, Bensenville also has some unsusual activity. There was a major increase in the number of properties closed due to acquisitions by the city of chicago. This may of had an effect on your homes value. I too would recommend contacting someone familiar with the market place and take into account all of the dynamics of your local market

Did you have your appraisal for bank purpose? If so, it seemed that if you would have needed $490,000 you would have gotten that price on your appraisal. They have tightened up with all the financing problems going on now. As far as value goes, call a local realtor and get a CMA (comparative market analysis) this will tell what your home is worth, meaning what a buyer is willing to pay. Then you might get your percentage rate, only if your $470,000 was based on the market. If you are wanting to sell, think of this, you might be losing money on your sale, but you will gain at another purchase if the home is price within the market.