Posted on: 15th Sep, 2010 09:57 pm
in june of 2005 i had a appraisal for my house so i could refinance. the appraisal came in at $308,900 and i refinanced and had a new mortgage $125,000 with a 15 year loan . in august 2010 i called the same bank and wanted to refinance again. i wanted $100,000 from the bank to buy a condo in florida. the bank approved and sent a appraiser out. this was a different appraisal company than the first. there appraiser appraisal was $229,000 that $79,900 lower than 2005 . he told me he based it on sells in the area.i asked him about market value and he said he could only go by sells in the area. i live in the country and they are homes that are worth $100,000 to $500,000. i know that the higher end homes have not sold in the last 5 years because we live in a area that people like and they don't sell very often. i was the contractor on my home and built it in 1987 and still live in it. my question is how can he base it only on sells and what can i do about it to get a fair market value for my home. i know that home prices have dropped but not by 30% in columbus,ohio. you could not build this home today for that price and if i sold it in today's market i would ask $285,000.
Hi Guest,
In this case your appraiser might have used a lower coefficient of variation to determine the market value of the home.Basically market value can not be solely dependent on sells in the area.There are plenty of factors i.e.condition of house,insurance,property bills,mortgage etc which are taken into consideration in order to come to the final conclusion.
But again, this is true that 30% price depreciation is not solely based on market conditions and older the house, depreciation % is more.So as you are living in the house for almost 20-25 years it seems that appraiser might have consider those depreciation values in calculation.
Feel free to ask any further query.
DIPA
In this case your appraiser might have used a lower coefficient of variation to determine the market value of the home.Basically market value can not be solely dependent on sells in the area.There are plenty of factors i.e.condition of house,insurance,property bills,mortgage etc which are taken into consideration in order to come to the final conclusion.
But again, this is true that 30% price depreciation is not solely based on market conditions and older the house, depreciation % is more.So as you are living in the house for almost 20-25 years it seems that appraiser might have consider those depreciation values in calculation.
Feel free to ask any further query.
DIPA
It is true that the market value of a property is most often estimated based on evidence in the market, i.e. recent sales activity. It is the most widely relied upon approach to value. I also must say that it is not uncommon to see a 30% reduction in value in the past 5 years. I can't really speak for your area, but I know some areas of Atlanta saw 50% or more and even good areas saw 20-30%.
You may benefit from getting a second opinion from another appraiser. They may have more insight into the nuances of your market, but if the value is similar to the original, at least you will have multiple opinions.
You may benefit from getting a second opinion from another appraiser. They may have more insight into the nuances of your market, but if the value is similar to the original, at least you will have multiple opinions.
