Worried about the appraisal of my home. Refinancing.

Asked by Kristina, Philadelphia, PA Sat Feb 18, 2012

I was approved for a great refinance interest rate but everything now depends on the appraisal. We bought the property in Mt. Airy 2.3 years ago. I think that the properties in Mt. Airy dropped in value because they are selling for less. We did a lot of work in the house during the 2 years. Would this increase the value of the house? My neighbors are selling for extremely low-a bad sign. We made a new bathroom of a bigger size and so converted a 5 bedroom house into a 4-bedroom, added a half-bath, converted oil heat in to gas-and added a high efficiency heater and water heater. Added new central A/C, redid the concrete outside the property, added a shed and a fence, replaced couple old windows for high efficiency ones, painted, fixed the walls of the basement and made a new floor in one room. Which of these things will add value to the house? We have an old kitchen without dishwasher. Thank you for your advice!

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7
Kristina, Home Buyer, Philadelphia, PA
Wed Feb 29, 2012
I think that I might have prepared for the appraisal better- give the appraiser more precise information of our renovation, receipts etc. . However I did not know that this is allowed!
0 votes
Kristina, Home Buyer, Philadelphia, PA
Wed Feb 29, 2012
Thank you. I will learn what the house appraised for tomorrow (3/1/12). I gave the appraiser a list of improvements and estimated prices. It came to $35,000!!! I myself was surprised at cost we already put to renovation. I think I underestimated it too! The appraiser was in the house only 30 minutes and I don;t think that I could give him the actual receipts of the renovations that are very many. However if he is reasonable and experienced he must know what new bathroom costs etc. he said that it might be a problem to find a recent comparable in Mount Airy. We will see.
0 votes
Bruce Lang, Agent, Philadelphia, PA
Wed Feb 29, 2012
make sure you document the wok you have done.....your area has huge variations in selling prices and condition is key.
0 votes
Erica Ramus,…, Agent, Pottsville, PA
Sun Feb 19, 2012
Yes do make a list of improvements for the appraiser. Anything you can give them will help. However, once they go thru it's pretty much out of your hands. The appraiser uses local data and best comparable sales. So if the neighbors are selling for less then you should indeed be worried. But it's the market -- you cannot change it.
0 votes
Robert D Hug…, Agent, Devon, PA
Sat Feb 18, 2012
Kristina in addition to giving the appraiser a list of improvements you have done, also either give them the most recent comparable or get the assistance of a reputable/qualified Real Estate agent to get the comparable to the appraiser. If you know there were either, foreclosures, estates, divorce or some other adversely affect on your neighborhood properties, make sure you give that list as well to the appraiser.

Once the appraiser completes their appraisal, it is very difficult to get them to rescind or change their minds on the value they gave. At least half the time in my experience, the appraiser is not local to your area or community. Therefore if you can assist them with this kind of information prior to completion of the appraisal, it is in your best interest.

Good luck to you,

Rob
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Sat Feb 18, 2012
It is what it is, just sit tight and find out what the appraiser says. The lender is required to give you a copy of the appraisal if you paid for it. Read the entire report when you get it to see if there are any mistakes, good luck,
0 votes
Marie Souza…, Agent, Centerville, MA
Sat Feb 18, 2012
Best advice I can give here: Make alist of all the improvements you have made & the cost to give to the appraiser.
0 votes
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