My husband and I recently had an appraisal of our home that was ordered by the Mortgage company we have used for years because we are looking to refinance into a lower rate.
We bought our home 14 years ago and have worked to make improvements inside and out using the equity in our home to do. Two years ago our home appraised at $297,000 and we used the equity to build an addition that is 20'X22' and includes a full bath. Now that the improvements are done (nearly $100,000 worth) its time to combine two mortgages into one and thus we had another appraisal done this week. The appraisal came back $12,000 less than it was two years ago. In essence we've not only lost the $12,000 but the amount used to add on over 400sq ft. of additional living space. How discouraging!
What’s really making us feel like we've been kicked is the comps used in appraising our home. Of the 5 comps that were used, three were recent sales, and listed first, and two are currently on the market.
Comp 1: Same size living space
.49 acre of land compared to our 1.84.
No front porch, we have a completely covered front porch
Comp 2: Same size living space
same undesirable electric heat (we have two gas fireplaces alternative heating source)
no basement
No front porch, we have a completely covered front porch
.46 acres of land in a undesirable neighborhood.
Comp 3: Same size living space
same undesirable heating system but without fireplaces
.45 acres of land.
No front porch, we have a completely covered front porch
Note: This house was recently view by a family member looking to buy and was told by the agent that the owners of this house were in default of their payments which probably was a factor in the price the home recently sold for.
Comp 4: Still currently listed for sale.
.99 acre corner lot compared to my 1.84 acres surrounded by state forest land on two sides,
the living space is only 300 sq ft larger
the basement is completely unfinished
Note: this house was also looked at as a possible purchase by a family member who said the kitchen was completely outdated (which was not seen by the appraiser).
Comp 5: Is a house that is 300 sq ft. larger
has a dirt driveway that is shared with two other homes
No front porch, we have a completely covered front porch
the conditions is listed as "average" when compared to my "good" condition.
We feel so insulted by the comparables used. When using comparables that are recently sold shouldn't things like the land size be taken into account? When using comparables that are still on the market shouldn't a house 2 miles away and listed on the market be used before a house that is more than 7 miles away?
Could my appraisal have suffered by a house whose owner sold in a hurry?
How are properties where the land size is a quarter of mine be worth the same or equal when the living space is the same, especially when the location is much less desirable?
How does an appraiser calculate $120 per sq ft. on my house yet all comparables were over $160?
And finally, an appraiser whose location is more than an hour drive was used by the bank. How well could that appraiser have known the location in comparison to one who knows and works this area?
We would appreciate any help you could give us. We are not sure if this is disputable or should we get another appraisal?
We bought our home 14 years ago and have worked to make improvements inside and out using the equity in our home to do. Two years ago our home appraised at $297,000 and we used the equity to build an addition that is 20'X22' and includes a full bath. Now that the improvements are done (nearly $100,000 worth) its time to combine two mortgages into one and thus we had another appraisal done this week. The appraisal came back $12,000 less than it was two years ago. In essence we've not only lost the $12,000 but the amount used to add on over 400sq ft. of additional living space. How discouraging!
What’s really making us feel like we've been kicked is the comps used in appraising our home. Of the 5 comps that were used, three were recent sales, and listed first, and two are currently on the market.
Comp 1: Same size living space
.49 acre of land compared to our 1.84.
No front porch, we have a completely covered front porch
Comp 2: Same size living space
same undesirable electric heat (we have two gas fireplaces alternative heating source)
no basement
No front porch, we have a completely covered front porch
.46 acres of land in a undesirable neighborhood.
Comp 3: Same size living space
same undesirable heating system but without fireplaces
.45 acres of land.
No front porch, we have a completely covered front porch
Note: This house was recently view by a family member looking to buy and was told by the agent that the owners of this house were in default of their payments which probably was a factor in the price the home recently sold for.
Comp 4: Still currently listed for sale.
.99 acre corner lot compared to my 1.84 acres surrounded by state forest land on two sides,
the living space is only 300 sq ft larger
the basement is completely unfinished
Note: this house was also looked at as a possible purchase by a family member who said the kitchen was completely outdated (which was not seen by the appraiser).
Comp 5: Is a house that is 300 sq ft. larger
has a dirt driveway that is shared with two other homes
No front porch, we have a completely covered front porch
the conditions is listed as "average" when compared to my "good" condition.
We feel so insulted by the comparables used. When using comparables that are recently sold shouldn't things like the land size be taken into account? When using comparables that are still on the market shouldn't a house 2 miles away and listed on the market be used before a house that is more than 7 miles away?
Could my appraisal have suffered by a house whose owner sold in a hurry?
How are properties where the land size is a quarter of mine be worth the same or equal when the living space is the same, especially when the location is much less desirable?
How does an appraiser calculate $120 per sq ft. on my house yet all comparables were over $160?
And finally, an appraiser whose location is more than an hour drive was used by the bank. How well could that appraiser have known the location in comparison to one who knows and works this area?
We would appreciate any help you could give us. We are not sure if this is disputable or should we get another appraisal?
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