Really Low Appraisal, Help!

[Salsa]

I will add, that's a pretty wide spread for sale prices. You mention Charlotte - a decent sized city. If you're within the city, I would think an appraiser would be able to find more similar "comps" (maybe not?)

Is there a certain criteria for miles. Does the comp have to be within a mile or so?

 

[bnmappraisal]

Is there a certain criteria for miles. Does the comp have to be within a mile or so?

As with much of appraising "it depends"

As a borrower/owner, that probably isn't the answer you want to hear, but it's reality in our "world" (profession)

As I said and in my personal experience with my house, 2 blocks one way can have a significant affect, but 15-20 blocks the other way ... are "comparable"

A competent appraiser should/better know the neighborhood boundaries and if they have to cross said boundaries (+ or -), should be able to distinguish the market differences

 

[Salsa]

I will add, that's a pretty wide spread for sale prices. You mention Charlotte - a decent sized city. If you're within the city, I would think an appraiser would be able to find more similar "comps" (maybe not?)

Is there a certain criteria for miles. Does the comp have to be within a mile or so?

As with much of appraising "it depends"

As a borrower/owner, that probably isn't the answer you want to hear, but it's reality in our "world" (profession)

As I said and in my personal experience with my house, 2 blocks one way can have a significant affect, but 15-20 blocks the other way ... are "comparable"

A competent appraiser should/better know the neighborhood boundaries and if they have to cross said boundaries (+ or -), should be able to distinguish the market differences

Thank you for your help! I took the advice and sent some comps I thought was a better fit than what the appraiser chose and sent to the buyer for the lender. I think whats going to hurt me the most is I can't find one house that has some remodeling 2 bed 1 bath in the area. I know it will hurt! Lucky for us we knew the area and did not over do it for upgrades. I just wish there was some comps like mine. The house is paid for and has been in the family for over 50years but it's just disappointing that we know it's worth more than the appraised value. In the end, you have to go with the comps even though they aren't remotely the same.

 

[Salsa]

Finding glaring errors may help your cause
Finding far better comps may help your cause
Proving that you have a home that is far more remodeled than the others and no adjustment was made can help your cause (especially a kitchen)

The porch and deck specifically are not as persuasive typically

Finding glaring errors may help your
cause. Finding far better comps may help your cause
Proving that you have a home that is far more remodeled than the others and no adjustment was made can help your cause (especially a kitchen)

The porch and deck specifically are not as persuasive typically

Thanks, there are obvious issues. I hope to get it resolved and will keep you all posted. I really appreciate everyone's help here!

 

[DonRico]

A couple of questions immediately come to mind when appraising a 2-bedroom home -- what is the Living Area the Appraiser reported ?? Is your home a "big 2 bedroom" What is in the Grid on the GLA line ?? How does that compare to his 3 Comps ??
A 2-bedroom home has a limited pool of potential Buyers. A family with 2 or more kids is not typically looking for a 2-bedroom home.

Also, you said the Kitchen was "updated" not remodeled. What did you update ?? Painted Cabinets and Ceramic Tile Countertops ? Or the whole catalog of new Cabs, Counters and Flooring ??
What did you do to the Bathroom to declare it "updated" ??

I would suggest you get a local Realtor to at least give you a free CMA, focusing on sales of 2-bedders and small 3's in your Market Area. There's still plenty of time left in the Selling Season...the maximum exposure your house will get is thru the MLS. At your Price Point, the Commission will be minimal and you'll have someone to push this thru to Closing.

Listing it on FakeBook will usually bring in less than ideal Buyers.

 

[Salsa]

A couple of questions immediately come to mind when appraising a 2-bedroom home -- what is the Living Area the Appraiser reported ?? Is your home a "big 2 bedroom" What is in the Grid on the GLA line ?? How does that compare to his 3 Comps ??
A 2-bedroom home has a limited pool of potential Buyers. A family with 2 or more kids is not typically looking for a 2-bedroom home.

Also, you said the Kitchen was "updated" not remodeled. What did you update ?? Painted Cabinets and Ceramic Tile Countertops ? Or the whole catalog of new Cabs, Counters and Flooring ??
What did you do to the Bathroom to declare it "updated" ??

I would suggest you get a local Realtor to at least give you a free CMA, focusing on sales of 2-bedders and small 3's in your Market Area. There's still plenty of time left in the Selling Season...the maximum exposure your house will get is thru the MLS. At your Price Point, the Commission will be minimal and you'll have someone to push this thru to Closing.

Putting it on FakeBook will usually bring in less than ideal Buyers.

Thanks for the info. All is updated! I would love for you to check it out on my page. Mindy n Matt Rozak and let me know your thoughts!

 

[Maveric33]

Who priced the home is it based on what the seller wants to net or the 2 bedroom market? Time to negotiate

 

[DonRico]

The Living Area Question is rather important.....what is the square footage of your Home and the Comps.

You could provide us with a link to your page.

 

[Carnivore]

Sir, I work in your market area. I cant comment about your appraisal but I can give you an idea what you market segment is probably doing right now. Even there I am stretching a little because I am licensed in NC. Two bedroom can be a little tricky. If you want to message me your address or just your street or ven just your zip code,I might be able to help you understand what is going on around you.

Again I will not comment about the appraisal you had completed on your house. Just cant do it..hope you understand.

 

[J Grant]

Price and an appraisal market value opinion are not always the same. However, the appraiser normally should consider remodeling in the value and use one or two comps with similar level of remodeling. Lenders have a process called reconsideration of value, where (typically) they allow a party to submit comps or sales or other information to the lender about an appraisal.. That is the most you can do in this situation. Of course a borrower can always opt to pay the sale price from funds over the OMV or you can split the difference/lower the price or put it back on market.

If this sale does not close, you may want to consider getting your own appraisal done, by a competent local appraiser to get a better read on the value. You also might consider listing it on MLS with an agent, who can price it or handle offers .