We're having our home appraised Tuesday morning.

[Writer]

Any tips? (other than the obvious?) ;)

[1monster]

1. Mortgage company or real estate appraiser?

[Writer]

5. Mortgage company. n/t

[1monster]

6. They'll low ball your appraisal. Never use a bank or mortgage company's

appraisal as the selling amount for your house. If you do, you are being screwed.

I had mine appraised several years ago for a bank mortgage. I was told the property was worth $141,000. The lot itself was worth $70,000 at the time. (That was the going rate for unimproved lots in that part of the subdivision.) And the house across the street, built by the same contractor, sold two years before that for $225,000 at a time when real estate prices around here were going up and up and up.

[Writer]

7. What I heard is that typically they meet what the bank has asked them to meet.

In '04 they said it was worth $245K. This time the bank is asking for $250K, although we've seen meager appreciation in this area in the last few years. I'd be surprised if it's much higher than $245K.

[LibraLiz1973]

2. LOL- I come with only the obvious

Be clean- not spotless, but clean. Be prepared, they take pictures of everything.
They tour the entire house and take measurements. But the things you think are a huge deal (at least things I thought were)
ended up being nothing. It's alot quicker of a process than you would think too.

[Bryan]

3. In my experience...

I've gone through it twice, and unless they request that you be there, I recommend introducing yourself to the appraiser and finding an excuse to take off.

My first appraisal was a deeply uncomfortable driving-test sort of experience; cleaning myself up, hanging over the appraiser's shoulder while he wandered through my hovel making notes, and making feeble explanations for the black mold and the dog-sized rats was a chore in itself (Should I have put another coat of wax on the floor? Is he going to mark me down for my tacky furnishings?).

The second time, I took the morning off, put finishing touches on everything, shook the guy's hand, and left to have breakfast, and that was much less nerve-wracking.

[LibraLiz1973]

4. I second this- since I've also done it twice

The first time I stayed with the guy. The second, I sat in the living room.

[rug]

8. Don't leave any underwear out laying around.

[Writer]

9. But isn't that "ambience?"

:shrug:

[davsand]

10. Here's a hint: They could give a rip about your housekeeping.

We look inside the house to measure for sq footage and look at condition. If your bathroom wall is rotting out--that is an issue. If you have panties thrown everyplace in the bedroom this is just how it goes.

If there is a really BIG problem (like the cat hasn't peed in his box for five years and hes been using the hardwood floor behind the sofa) that will require some kind of repair before the house can be sold THAT is a
problem and it is a "condition"issue. We do notice if we have only a narrow path to walk in to navigate thru the rooms--but that really IS a pretty odd case.

Personally, Ido notice decor--only if it is something that will impact a lot of re-sale value--but most times I don't make any adjustment for it if it can be corrected with a coat of paint or new carpet/floor covering. Pretty much, I am looking at what a buyer is gonna pick at before they buy a house.

I was in a house one time where they had done "splatter painting" on the bathroom walls, and I swear to you, it looked like a murder scene because it was dark red on WHITE walls. I didn't reduce value for that--but you must know that who ever bought that house probably had to put down a few coats of Kilz paint to it up.

Dated decor items (like lime green counter tops or even shag carpet) are just part of the deal with older homes and it is part of the package. If your basement walls are bowed and shaling out--that is a problem. If your roof is leaking and has damaged your plaster I'm gonna notice it. If you have all kinds of super mold growing in your basement or in your attic I have to mention it or else I may be liable for damages on down the road if it becomes a problem.

It isn't exactly a home inspection--but we are supposed ot mention any kind of "material defect" we spot in the property. Essentially, if it is gonna cost money to fix it we probably will have to report it.

AFter we look at, measure your house, and take our pictures (to prove we were actually there, usually!) we go back to the office and we look at what comparable homes (similar age, similar style and similar size) are selling for in that local area.

I dunno if it helps or not--but we usually don't give a rip if you are a sloppy housekeeper. We might comment on it when we get back to our office--but not always...

:evilgrin:


Laura

[Left Is Write]

11. Sounds about right to me.

My brother is an appraiser and I believe he'd say the same thing.

[Writer]

12. That's great feedback. Thanks.

The only eyesore I can think of is that Gandalf the cat decided to rip up the carpet in front of the master bedroom door. We are replacing the entire hallway with hardwood flooring (including the damaged spot) but they aren't coming out until Friday. :eyes: I'm assuming you discount even if it's about to be fixed?

[BlackVelvet04]

13. I have a question for you.......

does installing hard wood floors increase the value of the home very much? We installed hard wood in our living/dining/kitchen/hallway as well as ceramic tile in the bathrooms and the foyer. Good investment?

We are adding a custom built cabinet to the kitchen as well. The kitchen had a bare wall and we wanted a cabinet there to match the existing custom made cabinets. We are replacing the counter tops and putting in a tile backsplash. Good investment?

Hope you don't mind the questions.

[davsand]

15. From my perspective it has no major impact beyond what a buyer would pay to have it.

A Real Estate agent might tell you differently.

When I look at floors, it is more a matter of are they level (I carry a couple of my daughter's little super balls and I put them down to see if they roll in any particular direction. Marbles work well too!) or maybe I'm looking at stuff like condition issues. I do pay attention to quality of materials (it stands to reason that solid gold floor tile is probably WORTH more than vinyl...) but I can't really say that floor coverings make any real significant impact in an appraised value ultimately.

Custom kitchen cabinets will probably help if you are looking to sell the house on down the road, but again, it is more a matter of how they impact on the buyers.

Speaking as a property tax wonk and real estate appraiser, I'll tell you that most people tend to over estimate the impact that renovations will have on the value of a property. Unless you are making some pretty substantial changes--like adding sq footage or bathrooms or bedrooms--the increase in market value is probably not gonna be as much as it is costing you to do the project. Most home projects are probably more a matter of upkeep or something you want for your house.

FWIW, I'm kind of hoping some of the other appraisers on here chime in. They might have a different view point than I do. An appraisal is an OPINION of value not a guarantee. Literally, I have seen (more than once!) two different (legitimate) appraisals on the SAME house done within a couple of months of each other with as much as $25,000 difference in appraised value...


Laura

[BlackVelvet04]

16. Thanks for your reply.....

the changes I made were really for me but I think down the road those changes will make it easier to sell.

[Writer]

14. Kick for daytime folks.

:kick: