ChinnyChinChin
Freshman Member
- Joined
- Dec 7, 2015
- Professional Status
- General Public
- State
- Georgia
ChinnyChinChin: I just recently had an appraisal completed which seems a little off to me.
We have 2200 sq/ft above grade and about 1800 sq/ft of finished basement.
Our appraiser only used comps that were 2000-2300 sq/ft homes with no basements...so obviously the sale prices were MUCH lower.
He told me he doesn't think a 2600 sq/ft house with no basement is a comp and therefore my value was much lower.
$35k lower than i paid in 2006...an appraisal which he also did.
Any insight on this?
I have a number of comps in the area that are 400-500 sq/feet larger with no basements which sold for more than my appraised value...I'd love to use those comps
I have 2 homes within 1/4 mile that are 2600 and 2700 both both without basements that sold for more than my appraised value. I
asked why he didn't include such nice new comps and he said they aren't comps
Welcome to the forum.
Don't post the appraisal.
Some things here; what was the purpose of the appraisal? Lending?
Lending has its own rules for what is, and what is not "a comp", which can vary by lender through assignment conditions.
Regardless, the lack of comparables, or even non-comparable sales with basements should have been addressed in the report, as a matter of good practice. But it is important to understand that the report is produced for the lender, and for the lender's understanding. So if the lender understands you have a basement, and no sales support a value contribution for a basement, the lender has the choice of addressing the issue future with the appraiser, or, just letting you believe that you could convince the appraiser differently and that would make any difference to your loan application.
Sadly, the second option seems to be the case. If the lender did not ask the appraiser to address the lack of value contribution of the basement, and left it to you, well, the lender's decision is made concerning your loan.
Instead of looking for bigger homes, you need to look for sales of homes with basements, and compare them to similar homes without basements to extract any value contribution recognized in the sale price differences. Not just look for bigger homes, because they are two different considerations. Some buyers don't want basements, some will not buy anything that doesn't have a basement. But it's going to be very market specific, and depends on the pool of potential typical buyers in an area.
Hope this helps.
.
Actually we had the appraisal done to decide on if we wanted to sell our house or not...no lenders involved. Just an appraiser and his opinion.