question about drive by appraisals

[Ken B]

And the venacular...very impressive.

 

[GENTEEL]

We need the appraisal to come back at 315K for the 80% LTV.

Appraisals have nothing to do with meeting LTVs or max cash-outs. That becomes a pre-determined value and an unethical and inaccurate approach to market value. In my opinion, I believe that drive-bys or "exterior only" appraisals are most probably accurate and can be adjusted given the information in good faith and in writing.

 

[trinity033007]

Appraisals have nothing to do with meeting LTVs or max cash-outs. That becomes a pre-determined value and an unethical and inaccurate approach to market value. In my opinion, I believe that drive-bys or "exterior only" appraisals are most probably accurate and can be adjusted given the information in good faith and in writing.

I am sorry I don't think I am understanding what you are trying to say. The appraisal is what determines the amount (or eligibility) of the amount that we are asking for. So, if the LTV is 95% after the appraisal than we will not get the loan at the interest rate we were quoted. Also, are you saying if you are close to the amount so to speak than sometimes they will adjust the appraisal? I am sorry, but I am not really understanding what you are stating, if you could explain it a little more that would be great!!!!!

 

[Mr Rex]

Simple, ethical appraisers don't care about your LTV, loan amount or anything else. It is what it is, value wise.

If you are concerned about a drive by being conservative, I would ask for the appraisal to be upgraded to an interior. Value might be higher, might be lower, but its likely the most accurate of the 2.

 

[Mike Kennedy]

I believe that drive-bys or "exterior only" appraisals are most probably accurate and can be adjusted given the information in good faith and in writing.in good faith and in writing.

?? given what information??????:mellow:

 

[Michigan CG]

Trinity, It is my humble opinion that no appraiser should do an "Exterior Only" appraisal when access to the home is available. That said, it sounds as though you would have no problem granting access to your home for an appraisal given your concerns.

When you are borrowing money, you will ultimately pay for the appraisal, one way or another, whether it be through fees, points or your rate. Insist to your lender that you have an appraisal that shows true Market Value of your home, and that Market Value should include an interior inspection. If your lender refuses then find another lender. They are just trying to save some money -- typically $50-$100. I personally cite fees that the exterior appraisal report and the interior appraisal report are the same fee, because I have a hard rule (with certain exceptions) that I do not do exterior only reports.

There are some appraisers who will advocate for an "Exterior Only" inspection and cite that true Market Value can be derived. It is my humble opinion that if you are ultimately going to pay for an appraisal it should include an interior inspection of your home, you are entitled to that. You also have the right to a copy of that appraisal (Exterior or interior report) under Federal Law.

Your initial question was how accurate are Exterior (Drive-by) appraisals. Most on this forum would agree that they have a 20% accuracy problem. Make your lender do the right thing, and please keep researching for your own good. You will get good advice and bad advice.....some bad advice might come from certain Appraiser Trainees who think they know more than they do.

Good luck.

TE
Certified General in Iowa and Michigan

 

[Mike Kennedy]

rut roh :new_blackey:

 

[Mr Rex]

Is the 700sf addition permitted? If so it should be on the tax records and would be included, even in a Drive by.

 

[trinity033007]

thank you, everyone for your input....yes, the addition is permited, also, the interest rate is 6.74% and only a $90.00 recording fee....which in my opinion is great for a home equity loan....

I think (if anyone disagrees please let me know) I am going to wait and see what the appraisal comes back at and if it is low than I will ask for a re-appraisal done on the interior as well.

It is not like I am asking to be compensated for every new window I have put in or the new bathrooms etc....but there are certain structural things besides the addition, a 2 car garage, that has one entrance, an expanded fosade (that the other homes in the area do no have) and a couple of other minor things that definately should be reflected....

I just want to make sure, can I ask for a re-appraisal if I am not happy with the orginial appraisal?

I also want to thank everyone, everyone is so imformative and helpful thanks!!!!

 

[Thomas Fiehler]

Trinity-Just make sure the addition shows up on the county records. Around here it often takes a year or two to show up on their sketch.