I have had many years of appraisal experience so here is what is important:
The appraiser will look at your home, determine the size, room count, amenities, condition, etc. Then he will look for comparables - the closest sales, in similar condition, of similar size, etc. If the homes on your block do not have the same improvements, etc., or are in lesser condition, the appraiser will have to make adjustments in your favor, OR go to another nearby block to find homes that are more similar. Typically no sales should be more than 6 months old. At least 3 sales are used and the end result is NOT the AVERAGE of the 3 sales but the value which is best supported by the data.
I can assure you that your home will not typically be valued considerably more than the neighborhood...if it were that, it could be considered as an over-improvement for the area. If you lived in a home which was a bit unusual, sometimes that is better as the appraiser might have to go a further distance to find the appropriate data.
I will be glad to answer any other questions that you might have about this. Just let me know.
Carol Cei, Realtor, ePRO
ReMax Platinum Club
5 Star Professional
ReMax Action Realty
It looks like you already got some of the answers you were looking for below, but it looks like you still had a few more that needed answering.
1. Can you refinance for the appraisal value exactly? The answer is no. Typically you can refinance up to around 95% of the appraised value on a conventional loan, and up to 96.5% on an FHA loan. Those rules can adjust depending on the lender.
2. Can the value be a lot more than average home value on the same block if newly renovated or is it safe to assume the neighborhood average listing price? As stated below, the condition of the home will play a factor. Which means if your property is a lot nicer than the surrounding properties, the appraiser will use that factor in his/her evaluation. The same would go if your property was in worse condition than the surrounding properties.
Hope that helps.
Timothy Garrity | Realtor & Consultant
Licensed Real Estate Salesperson - #RS314897
The appraiser bases their valuation on condition, amenities, size of building, size of lot, and comparable sales withing a 6 to 8 block radius in the past 6 months. If it's a rental property, they also look at the rent amount, and 12 month history of rent.