Two Quest. Understanding Comps And Home Value With Repairs Needed

[mo77777]

Greetings and thank you in advance! My lender stated my home was worth $160k but a home across the street same size with a pool just sold for 140k. My home also needs a new roof and windows. Does this affect its value? Will an appraiser value the home less for the needed repairs? Will an appraiser value the home less since the home across the street also had a pool? Thank you!!! Trying to get an honest assessment of the value and if I should pursue principal reduction assistance.
Thanks!!!
Confused,
From Florida

 

[Randolph Kinney]

Greetings and thank you in advance! My lender stated my home was worth $160k but a home across the street same size with a pool just sold for 140k. My home also needs a new roof and windows. Does this affect its value? Will an appraiser value the home less for the needed repairs? Will an appraiser value the home less since the home across the street also had a pool? Thank you!!! Trying to get an honest assessment of the value and if I should pursue principal reduction assistance.
Thanks!!!
Confused,
From Florida

Yes to all your questions, the value will be affected and would indicate a negative adjustment to value.

 

[Wm. Hattaway]

A home like yours with deferred maintenance (needed repairs) would be worth less than similar homes not having deferred maintenance. As for the pool home that sold across the street, it depends. The appraiser would research this sale and find out what was involved with the sale; was it a foreclose, a short sale, an arm’s length transaction, did it need any repairs. He will then decide if the sale is an indicator of value for your home.

 

[Tom D]

"you lender stated", stated from what point of reference. the house across the street obviously points to the direction of your value, if it was a normal sale. and yes if similar homes, to your lower value if that home shows better. can't say about pools, in my seasonal hot to winter months an inground pool has no value except in the richer neighborhoods. i think most people might not want a pool with it's expense, and liability. but i don't know your neighborhood. also costs as much to remove, as to put in.

 

[Meandering]

Similar question as Tom.

My lender stated my home was worth $160k

From whence did they derive this "worth"?
Did they have an appraisal done?
Did they have a BPO done?
Did they order an AVM?
Or did they just search the internet?

Many websites now have "estimated value" of a specific property, which is as good as throwing any number in the air.

Anybody can say anything, but it's only appraisers that can make a number stick.

That's what they license us to do.

.

 

[Mr Rex]

Unless your lender can loan on his own opinion, then his opinion is worth the volume of hot air it contains.