Low Appraisal

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  • #58967
    jekenezar
    Member

    I do not know what to do. First I learned the boa grant funds were exhausted. I overcame that hurdle. Now a second hurdle popped up. My appraisal came back 41,000 lower. I am not sure how because I have done my due diligence in searching for a house over the past several months. The houses in the town I am searching come in only 6 different styles. I fell in love with this one style and even put in an offer on a previous houses with the same style as the house I have under contract for the same amount of money (which I did not win). Every house that I have came across on the market in the same subdivision with the same structure sold for around the amount that my current seller is asking for. I have put in for an appraisal dispute and provided comps with the same updates, size, and structure located in the same subdivision. Every house went for around this price. I am at a stand still. The appraisal used comps that were not updated although my house is a completely renovated house and were not the same style as the subject house. I am so sad. Please help.

    #58970
    Nelsont
    Member

    Are you in a hot market?

    What houses are selling for is only half of the equation. In a hot market houses often sell much higher than their appraised value in part because demand outweighs supply.

    Unfortunately if all the comps are selling for around the same price then the appraisal is stating the houses are overpriced and due to lose value in time.

    For what it’s worth your appraisal is done by the county. So your local government is setting the value.

    #58976
    truque94
    Member

    Hello,
    The appraisal value should be based off the most recect sales of similar homes in the neighborhood. The appraisal should have also been completed by an independent party and not a county agency. The only things you can do at this point is wait for the results of the appraisal dispute. I wish you luck.

    #58977
    jekenezar
    Member

    @truque94 thank you so much I am patiently waiting.

    #58980
    Nelsont
    Member

    In my area the appraisal is mailed to you from the county office with the county appraisers name on the appraisal…

    #58985

    I recently had an appraisal and it was definitely conducted by an independent agency. Since my property was a new construction and I was the last of 5 new town homes it was easy for the appraiser to assess the value and find comps. Your appraiser may have not done a great deal of research making sure that they were using renovated comps or adjusting for similar properties that were un-renovated. A 40,000 dollar difference is extremely significant. It seems like you were able to find some comps yourself; I’m curious if you would be able to provide those as evidence for your re-assessment.Hopefully it works out for you. I’m going through some challenges myself with the loss of the BOA grant, Im not even sure if I will be able to close on the date stated in my contract because I have to submit a change of circumstance.

    #58986
    Nelsont
    Member

    Is there a way you can find out from the comps what the other houses were appraised for? Comps are not appraisals they are just similar homes in the area. They may have been appraised low too. The appraisal takes appliances, fixtures and permanent pieces into account (but not furniture). So is it possible your house has contractor grade kitchen appliances, knobs and cabinet handles and the other houses had upgrades? Also what about the land? Do the other houses have more land? And not just more but usable? If you have 1 acre and its all woods or all hill it might not be worth as much as half an acre of flat lawn. With that all said builder upgrades shouldn’t add 40k to the value. Maybe 10 or 20 tops. You need go through the appraisal with a fine tooth comb and see what it says about the value.

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