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They're appraising our home at $120k less than we expected. That's money we were expecting in equity, and it's gone just like that.
My problem is, they are using comps that are not even in the same league.
They're comparing bank-owned homes half the size of ours, half the lot, lower quality builders, none of the upgrades...and pricing ours 10% over those.
So we paid $300k in 1999 and added about $75k in upgrades including a full addition upstairs with another bedroom and bathroom, and they are telling us we have to list at $289k.
This is one of the reasons that several of us strongly advised you to rent here before jumping into another piece of real estate. Especially real estate that has been subject to a lot of irrational speculation in an area you don't know. I think I even advised you, in one of your topics, to wait until your first home was sold. Real estate is crashing and prices are not coming back. However if your previous home is covered by the typical M&L plan, then your employer will at least take it off your hands at that price which is the silver lining in the whole thing. If so that will be the extent of the haircut you will take on that property. If not, then well.... I'm sorry. It's not going to be fun watching two properties go down in value.
They're appraising our home at $120k less than we expected. That's money we were expecting in equity, and it's gone just like that.
My problem is, they are using comps that are not even in the same league.
They're comparing bank-owned homes half the size of ours, half the lot, lower quality builders, none of the upgrades...and pricing ours 10% over those.
So we paid $300k in 1999 and added about $75k in upgrades including a full addition upstairs with another bedroom and bathroom, and they are telling us we have to list at $289k.
I feel sick.
Who are "they"? The RE Agency? Have you had your home appraised by a professional appraiser?
Bank owned or not, your home should be compared to other homes that are truly comparable. I'd push back or get another opnion.
It sounds like the work of an agency that just wants quick sales to pay them commissions....just a hunch.
Telling you that you have to list your house at a certain price? Who is telling you this and how can anyone force you to list your home at a given pricepoint?
Your home should be compared to similar properties in the area, usually within a mile radius. Deductions/additions should be made to the comps so they match your property. I have never heard of anyone just adding 10 percent to the comps to arrive at a SUGGESTED list price.
Unfortunately some areas have experienced a high amount of foreclosures/short sales and appraisers are using these comps if there are no regular sales in the area to choose from.
Buying the home in Mooresville isn't a problem. We're still getting lots of equity out of our home here and we have the down payment in savings, but we thought the comps would be from the past year and they're only going back 6 months.
We have to list it at the price they set as part of the relo package.
We're just upset that the appraisers are comparing apples to oranges, and I need to find out if there's anything we can do about it or just eat it.
Have to stay positive...the sellers in NC lost $50k on the home we bought, plus I'm getting a new income that wasn't there before.
Boy, my neighbors here are going to be happy if they try to sell.
I would talk to your relo company ASAP about getting more appraisals done. Be calm and unemotional, but explain your view of the "comps" they pulled, etc.
What you paid in 1999 has zero to do with what it is worth in today's market, so leave that bit out. Focus on comps, that is the only measuring stick.
Given how unstable the market is and has been, I think 6 mos is pretty much standard now.
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