House appraisal

[Old TexMex]

Any of you guys house appraisers?
I’m re financing my mansion, with the same financing outfit, since the interest rates have dropped. Monday an appraiser is coming. Any tips on this to make my impending appraisal go well?
Thanks

 

[amazingflapjack]

Ask any neighbors with barking dogs-parked semi trucks, or "project" vehicles to get them out of the way temporarily. Make sure the "first impressions" on the walk up are good. Maybe get someone else to cast a critical eye on the "curb appeal" preferably a Woman. Clean up-put stuff away-move stuff to your buddies house for the day, and get rid of those hog hides!

 

[arjay]

He/she will be comparing it to similar sized houses in the area that have sold recently to come up with a value

 

[HOUSTON RICK]

Bake cookies in the oven so the cookie smell is in the house during the inspection.

 

[Old TexMex]

Property prices are pretty crazy around here, $30 sqft, so why they even bother to do house a appraisal escapes me (sort of). The dirt I’m set on is worth four times my mortgage.

Since it’s historic, but not protected by Texas historical commission, if the appraiser wants to use new houses being built nearby as comps (I can hit three with a baseball from my varanda) thats a bit out of the ordinary.
I just hope the lady that’s coming has looked at houses other than suburb and condos. Hopefully she’s not a man hater.

Most everyone that comes here house hunting is shocked at the prices compared to the mainland. (Not to mention the taxes).

I had planned to go to a gun show, but now I gotta do the weed eater thing.
Ah well, save the money for Tulsa in April I rekon.

 

[Ranger17]

He/she will be comparing it to similar sized houses in the area that have sold recently to come up with a value

This is the norm here as well, pretty easy to do in the standard suburban cookie cutter neighborhoods. May be tougher when the home is not comparable to others nearby, requiring more research for the appraiser than just relying on comps.

We are in a catch 22 in our area; home prices have been skyrocketing with sales over asking price which helps my value if I want to ever refi etc. The flip side is the village is reassessing homes to take advantage (plus large school referendums coming) and our taxes already are too high.

So ideally an appraiser thinks our house is a beautiful mansion while the assessor finds it a dump worthy if a tv flip show lol.

 

[rkittine]

Appraisers take into consideration "The Dirt" that the home is on. We do not value the house but the "Property". If this is a bank required appraisal, it is necessary as the bank wants to make sure that there is "Hurt Money" as a minimum in the amount not financed. So a 20/80 ratio means that the buyer has 20% money in if and only if the house appraises. Many states (I have been license in 7 but not Texas) actually will allow a buyer to void a contract if the house appraises for less than the transaction price unless the seller is willing to lower the price to the appraised value. An appraiser will look at condition in addition to pure "comps" but don't expect that baking cookies is going to influence the outcome. In many areas, banks will require a higher down payment if the property does not appraise for the transaction price, again to make sure that if they have to foreclose, they can discount the property, sell it quickly and get at least what they are owed out of it. Traditional banks do not want to be in the Real Estate Business with an inventory of houses., which is why they have aggressive REO departments working with experienced brokers.
One of the things that you may find on a bank ordered appraisal is a very conservative one. Say the transaction price is $500,000 which the appraiser will know, expect that if the house is worth at least that, that the appraiser will probably appraise at the traction price or only slightly over as to not stick their neck out. A lot changed on the appraisal field post the September 2008 mortgage melt down. If you want to get a better idea of the true market value of your property, hire an independent appraiser that has not bias to any interested party.

Bob

 

[Old TexMex]

Thanks Bob. Good stuff, I’m reasonably confident after reading yours, since it echoes a local realtors opinion. The rush to the coast post hurricane harvey has boosted sales, along with the lower interest rates. Since I’m only re-fi ing (Quicken) with the same firm for a shorter term and slightly higher payment, I should be ok. I don’t expect lower than a C3 for sure.
Thanks again,
Jim

 

[hoosierone]

I used to work at a bank and did many appraisals. Please don't consider this a social call, don't offer them coffee, don't comment on various aspects of your property unless asked. Don't squeeze him/her for an instant value number. Keep pesky dogs and kids out of the way. Don't answer the door in your nightgown (if you are a woman). If you have a survey, offer to show it to them.

Generally, people have a tendency to over value their property because they live there. I was very happy when my duties no longer included appraising.

 

[Golddollar]

I was fortunate that when my house was being built my aunt took pictures during the construction and assembled them into a construction album. I always showed that to an appraiser. It would confirm at least that I had 2x6 framing so that they wouldn't just have to take my word for it. So if you have any pictures from the initial or subsequent construction have them available to show the appraiser. I also put together a list of the enhancements that would not be easily visible with the costs and gave that to the appraiser to talk along.

 

[H Richard]

When I sold my house (15 years ago), I had an independent appraiser do it before listing with a realtor. In my case the realtor agreed with the independent appraisal. I don't know if still appropriate today, but realtor fee's can be negotiated. Back them standard realtor fee was 7% of selling price. I negotiated 4.5%. They won't go lower as if another realtor is representing the buyer they each get half the fee, and for 2.25% they won't steer buyers to your property, but to higher fee properties first.

 

[BearBio]

Bake cookies in the oven so the cookie smell is in the house during the inspection.

Or vanilla!

Although most appraisers are too savvy for that==more to impress "maybe" buyers.

(Twenty-five years in Title industry!)

 

[NYlakesider]

Well now, I have had two of my houses appraised by PROS! Also two for my sons and a couple close friends. I went with the appraiser.

IMNSHO they mostly miss stuff that Stevie Wonder would pick up on. It depends who they are REALLY working for, most times its not you!

My background a few years as a union construction laborer and many years as a construction pipefitter/welder and a person that did his own car and house repairs and many upgrades!

 

[rkittine]

Where I sell real estate now, the Dirt Value, is so high, it makes little difference how well your house or apartment is built and in most cases, we have people buying homes to get the land and gut renovating the house or apartment with good location and bones and gut renovating them. Where land prices are lower, the home value will be a bigger portion of the Property Value.

 

[Marine Corps Air]

My $ .02, based on the appraisal process that we just completed:

1. If you have them, provide the appraiser with a complete set of blueprints (he/she will not take the blueprints),

2. We have a two story home with a finished basement. I provided the appraiser with an Excel spreadsheet (summary) of the approximate square footage for each level. Note-the appraiser performed his own separate calculations from the blueprints.

3. I cleaned up the old casa - ran the vacuum, put things away, made it "ship shape" and neat.

As has been previously stated, the appraiser will not be making an offer to buy your home, he/she is determining a valuation.


Bill

 

[Farmer17]

I've built and remodeled many houses and had a lot of appraisals done and about the only thing you can easily do to help getting a favorable appraisal is to just clean the house good and move all inside junk to the garage. If you have stuff scattered all over your yard, gather it up and put it in one place, out of the way. A quick touch up paint job on things that are eye level or very visible would help if you have the matching paint handy. The appraisers usually only spend about 30 minutes inside and outside the house so whatever you can do to make that quick impression better may help a little on the appraisal. If you've made some improvements you could give the list to the appraiser and then walk away and let them do their job without you following them around.

 

[Ivan the Butcher]

In real estate the are 3 things that determine what the "Estimated Value" is. 1) Replacement value (the cost of building one like and a similar lot, minus the costs of repairs and updating to current standards). 2) Income: What rent you could get, usually over a 7 year period. 3) Comps. The comparison of selling price of similar value in a location similar to yours.

Many Appraisers (some citified and many not!) Just do a computer search, and no real research. This is the area you must watch closely!! Make sure your comps, truly comparable.

IF you have valid reason to feel your appraisal is under valued... DO NOT ACCEPT IT AND RAISE A STINK! You are suppose to receive a copy, make sure you get one. Many finance companies do internal appraisals, then don't justify anything they say.

My family has been in Real estate since 1961, we see every scam you can think of!

Ivan

 

[Old TexMex]

Gentlemen I thank you! I’m takin it all in.
No kids, no dogs, no junk in my yard, the truck is moved, the beach beater sled is parked at my buddys, a three year old (30 year architectural) roof, a two year old paint job, new cedar lattice skirts, recent elevation certificate, and Texas Windstorm Insurance Association certification, but no blueprints, cause this joint was built by a shipwright in 1937 and that old codger probably didn’t use blueprints

Now the hard part vacuum and mop. Bummer.
But “You only have to go halfway, and one step more, because then its farther to turn around and go back...so you might as well go ahead and finish.”


I really wanted to go to that gun show.....

 

[6518John]

Jim—I drove by and got a picture—you cleaned the place up real nice:

 

[mtgianni]

Appraisers for refinance may do weird things. We refinanced to pull out $10K for a deck build some time back. All of the comp houses were 25-30 years older on postage stamp lots. We had a 3/4 acre lot and a 12 yr old house. We did the refinance then sold 18 months later due to a work transfer. Appraisal for sale was $85K higher than the previous one. I am sure it was not due to the deck or neighborhood changes. The first offer was for appraised value.
I am of the opinion that a refinance might be slanted towards the mortgage company's favor.