hse appraised 8/07 during constr of 1300 basement at $330K. Now appraised at $290K. Market good. Whats up?

Asked by Heather, hopkinville, KY Tue Dec 9, 2008

in 07 added upscale1300 sq ft basement with huge gameroom, luxury bath, large bedroom, large office with hidden sewing area as well as storage room. We got a drive by appraisal for a refi for $290K. Hopkinsville market has been stable. how could we have lost $40k by adding $60K in a relatively good market?

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Wendy Bryant, Agent, Hopkinsville, KY
Sat Sep 4, 2010
Heather- I sell Real Estate In Hopkinsville. I will tell you that its not that your home is not worth $330k its that the market can not compare to that. You have to have 3 or more comps to do an appraisal all around the same square footage, and amenities in the homes. It has had to sell within the past 3-6 months and WITHIN a mile or so of your home. A seller down the road from you, may have sold LOW and quick to get out of the mortgage, or a foreclosure. THESE hurt your property very much. Market Value is different than appraisal value.It has taken a toll on the market. Even as an real estate agent, I can list your home at Pay off or even the appraisal value from a few years ago, BUT I have to come up with COMPS before it will appraise. Can't find comps that do not exist, so this is where we have to slowly build the market back up. :) Hope this helps
Web Reference:  http://www.paynesold.com
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Leroy Jackson, , Punta Gorda, FL
Tue Dec 9, 2008
Drive by appraisals are just that, and usually they are not performed by a licensed, professional appraiser.They are not accurate. A professional appraisal at a minimum involves using recent comparative sales and making measurements of the subject property to arrive at a current value. Appraisals are based on current market conditions and are applicable to the period of time they refer to. Values are always changing and appraisals,reflect that, be it positive or negative.
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Scott Godzyk, Agent, Manchester, NH
Tue Dec 9, 2008
Heather the truth is drive by appraisals are not worth the paper they written on. An appraiser can not truely add or subtract value without seeing the interior, the condition and upgrades. It was basically to pacify the lender for a refi. Unfortanatly square footage below grade is not appraised at a value as much as square footage above ground. Some lenders and appraisers will not use square footage below grade in the square footage but list it seperately as say 2500 GLAL (gross living space above grade) 1300 SFBG, Total SF 3800SF. As far as market values, while some areas are fairing better than others, theappraiser will use the last 3 sales in yoru area of similar homes, if they sold for less it does affect your value. Hope this helps in explaining it even though i know it is not the answer you want to hear.
Web Reference:  http://www.ScottSellsNH.com
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