Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am in the process of purchasing a property in Nassau county and have been working with two banks. I have received very disparate appraisals for both properties - one came in at the contract price and the other came in almost 20% below contract price.
After reviewing the appraisals, the biggest differences lie in the comps that were used for the report. The one that appraised at contract price compared different property types than the one I was purchasing and the comp selection appeared to be more focused on the total gross living area and the finish of the property. i.e. redone basement, new roof, updated baths, etc
The appraisal that came in lower compared homes that were closer to the type of house that I am purchasing but did not appear to weigh the finish and upgrades as heavily.
Both seemed to have been thorough reports but my concern lies with how my property will appraise when I have to sell. When an appraiser cant find the same type of home to compare against, does it make more sense to look at a different type of house but with similar finishes or to compare for the same type of house and make adjustments?
Does it make sense to try to get another appraisal?
There are two banks involved so the bank I choose will result from my decision to move forward or not. My willingness to pay will depend on whether I am paying a market price for the property.
There are two banks involved so the bank I choose will result from my decision to move forward or not. My willingness to pay will depend on whether I am paying a market price for the property.
Like I said... the market is based upon what somebody is willing to pay for it. If a bunch of appraisers said the house appraised at 50k... would you really believe them?
You should use the recent sales based on the square footage and lot size, then take a small consideration on cosmetic interior upgrades.
Like I said... the market is based upon what somebody is willing to pay for it. If a bunch of appraisers said the house appraised at 50k... would you really believe them?
You should use the recent sales based on the square footage and lot size, then take a small consideration on cosmetic interior upgrades.
Thanks. So is it fairly normal for appraisers to use comps that may not be the same type of property but close in terms of square footage, lot size, location and interior upgrades?
Thanks. So is it fairly normal for appraisers to use comps that may not be the same type of property but close in terms of square footage, lot size, location and interior upgrades?
Appraisers shouldn't be factoring interior upgrades into the appraisal solely because they cannot get the interior features of the comps (unless they personally appraised those houses as well).
I would use the appraisal that gave the best estimate regarding compables on square footage, lot size, location (closer the better and avoiding main roads), and school district.
I have a feeling the one 20% below is the true one. Location is more important, but finishing a basement does cost fair amount of money, so if the comp is not taking that into consideration and adding value for a finished basement etc, that is not right. Interior fixtures are negligible ( unless this house has everything made of out gold) and should be ignored.
Thanks for the info. It makes intuitive sense that comps should be from the same area as the the subject property. Incidently, the property did have a completely renovated basement which was not taken into account.
Lastly, I found out today that it was the first time the appraiser came out to long island to do an appraisal...
I had a condo that I listed that didn't appraise. He compared it to the last condo that sold in the development. The problem was he didn't realize there was a full finished basement and an extra bedroom. When I pointed that out, the buyers were able to purchase the condo. If only the appraiser actually saw the condo it wouldn't have been an issue.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
