Appraiser didn’t look at the Comparable Properly

What home buyers and sellers should know about appraisals

Even before an appraiser comes over to your house for the appraisal. He has a fair idea on where he would be looking for comparable because appraiser has access to information about your property and property in neighbor hood based on when the home was built etc.

However, a physical verification may alter his decision for a particular comparable that he may have in mind based on any new development on the property that may not have been reported on his automated MLS system.

I have a pool and still, i didn’t get enough value on my Home Appraisal

Very often people feel that a fancy pool on which the family spent 50k would automatically give them a higher value because of the money spent. Well, a pool is a symbol of your life style. However when it comes to appraisal. It should ideally provide some higher value because of the amount spent but not necessarily that it should match equally to what the family has spent on making a pool.

There was a distress sale in my neighborhood. Will that affect my home value

There is likelihood that a distress sale would impact the value of the home appraisal. To what extent is hard to say. The right person would be an appraiser. A wise step could be to ask a local appraiser to check on the comps on his computer and let you know the value. The appraiser would typically request for a visit to your home before he can assign a value to your house. However keep in mind. Your appraiser’s value will not be considered for Mortgage.

Since 2008. Every bank now has a team of appraisers that they vouch for and would consider only appraisal from them as the final figure for mortgage. So one banks appraisal report may not necessarily be accepted by other banks. Unless its an FHA loan which is a Govt backed loan. In that case, the same appraisal report can be considered by other lender or bank.

Appraisal Process Services in Mortgage

Appraisal Process for a Mortgage

An appraisal is a necessary part of the process of the mortgage. The borrower needs to pay for the mortgage upfront via credit card.

How to Deal With a Low Appraisal

In today world where everything is automated. Appraisal report to is a blend of human effort and automated system. Just the way we have credit reporting system for borrowers. Same way Appraisal companies have access to an automated system called MLS. Where most up to date prices of home are published and recorded. 

An appraisal has a fair idea of what the value of the home should be based on prices in the neighbor hood. However a physical inspection is needed for him to ascertain any new development or how well kept the home is to assign a specific value. 

Appraisal looks for similar homes called comparable in the neighborhood and he has to mention in his report how far and why did he choose that specific home as a comparable before assigning a value to the subject property of the borrower.

Sometimes the borrower has spent a lot or feels his home value is higher than others and yet he doesn't get the same value. 

One has to understand that prices may vary from appraiser to appraiser but traditionally its more or less the same. Your best guide would be your Loan Officer to get a perspective on the matter.