Not an appraiser but the wifey used to work for the county assessor and I've had quite a few done personally and professionally. Hope this helps.

In my experience, the appraisal is not based on money spent = value. Rather, a home's value is set based on what similar properties in your neighborhood are selling for, e.g., all 3 BR, 2 bath houses, finished basement, central air, attached garage, those sorts of factors. A new addition to add a family room or bath or bedroom increases value, not dollar for dollar but equivalent to similar houses in the new bracket. If comparable properties ("comps") have not sold recently, they factor passage of time; if a comp. is close (e.g., 2 1/2 baths vs. three, central air v. no air) they increase/reduce based on the appraiser's experience. Appraisers for the most part will not even enter the house, they will rely on a viewing of the outside, drive around the neghborhood, recent sales data and what the county assessor has listed as your and comp. specs (BR, baths, etc). Part math, part voodoo.

Basically appraised value is an educated estimate as to what a house will sell for on the open market. One trick is to tell the appraiser exactly what you need the appraisal for and even, offhand, give him a "ballpark" of what you think the value is. They aim to please. For example, an appraisal to appeal your property taxes, you would want a low appraised value (thus lower taxes); an appraisal to set a market value to sell, you want a real estimate; whereas, an appraisal for your purposes, or to get a home equity loan, you want a high appraisal.

Hope this help. There's no getting around paying for the actual appraisal, though.

Mike

posted by 67.100.23...

• Way O/T getting rid of PMI (long), Rich, Thu, 20 Oct 2005 15:05:42
  • Re: Way O/T getting rid of PMI (long), Avanti, Fri, 21 Oct 2005 23:28:23
  • Thank you all., Rich, Fri, 21 Oct 2005 15:41:12
  • The ONLY way to get rid of PMI (and keep 4.5%), Jeff B, Fri, 21 Oct 2005 11:37:43
  • what is PMI?, rob , Fri, 21 Oct 2005 11:35:29
    • PMI - Private Mortgage Insurance (too long), Jeff B, Fri, 21 Oct 2005 12:07:59
    • Re: what is PMI?, Geoff, Fri, 21 Oct 2005 11:47:17
  • Re: Way O/T getting rid of PMI (long), SWEDECAR , Fri, 21 Oct 2005 09:29:31
  • Re: Way O/T getting rid of PMI (long), Rafe, Fri, 21 Oct 2005 07:21:04
  • Get a Realtor to do a Market Analysis, JimN, Fri, 21 Oct 2005 06:55:25
    • I did that long ago and it worked, Schu, Fri, 21 Oct 2005 12:22:48
  • why not covert the amount over 80% to a 2nd mortgage, hte originalMJM, Fri, 21 Oct 2005 05:29:55
    • in his case, it might well cost him more that way., mdj, Sun, 23 Oct 2005 17:32:40
    • Bingo!, HD, Fri, 21 Oct 2005 10:28:03
  • Re: Way O/T getting rid of PMI (long), Rich T., Fri, 21 Oct 2005 05:15:10
  • LTV is the key, Geoff, Thu, 20 Oct 2005 15:46:21
    • can anyone afford to put down 20%?, Bob M, Thu, 20 Oct 2005 17:12:51
      • Re: can anyone afford to put down 20%?, Rafe, Fri, 21 Oct 2005 07:23:16
      • Just remember, Jim, Thu, 20 Oct 2005 21:01:12
        • That is true..., Bob M, Fri, 21 Oct 2005 05:55:46
      • Re: can anyone afford to put down 20%?, Geoff, Thu, 20 Oct 2005 18:27:54
        • Re: can anyone afford to put down 20%?, Rich, Thu, 20 Oct 2005 19:27:57
          • can anyone afford to put down 20%? Not me..., Chris M, Fri, 21 Oct 2005 05:24:59
          • Then maybe ask your loan officer, Geoff, Thu, 20 Oct 2005 20:13:31
            • Re: Then maybe ask your loan officer, Rich, Fri, 21 Oct 2005 06:08:33
              • Chearer insurer? Homeowners Protection Act?, Geoff, Fri, 21 Oct 2005 07:09:42
                • Chearer = "cheaper" -- no coffee yet, sorry. n/m, Geoff, Fri, 21 Oct 2005 07:10:27
  • Re: Way O/T getting rid of PMI (long), michael p, Thu, 20 Oct 2005 15:39:43 <-- Viewing This Message
    • PMI Removal should be fairly straightforward, mdj, Sun, 23 Oct 2005 17:51:35
      • Re: PMI Removal should be fairly straightforward, Paul E, Sun, 23 Oct 2005 21:44:10

No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.

• Prev by Date: Way O/T getting rid of PMI (long), Rich, Thu, 20 Oct 2005 15:05:42
• Next by Date: LTV is the key, Geoff, Thu, 20 Oct 2005 15:46:21
• Main General Bulletin Board

StateOfNine.com

SaabClub.com

Jak Stoll Performance

M Car Covers

Ad Available

The content on this site may not be republished without permission. Copyright © 1988-2024 - The Saab Network - saabnet.com.
For usage guidelines, see the Mission & Privacy Notice.
[Contact | Site Map | Saabnet.com on Facebook | Saabnet.com on Twitter | Shop Amazon via TSN | Site Donations]

Random Saabnet.com Member Gallery Photos (Click Image)