Hi Blackstock Mill Homeowner,
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