Teaching You Thursday: Appraisals

So, I’ve learned a little something about appraisals lately.  Something I’d like to share.

We had an appraisal done for a home equity line of credit, it came in at above what we’d paid for our home, not MUCH above it — but enough.

About 4 weeks later we get one for our loan refi, and it came in 15% less then the one a month earlier.

And it seems like both are correct.

Is it true that the market around our home gone down 15% in one month?  No.  Not true.  All the other homes are selling for somewhere in the first appraisal, BUT we had 2 REO in our area within the past month that have drug everything else down.  Does this seem right, when other homes are selling for high amounts still?  No.  But I guess it’s the way it is.
SO, the moral of this story is that if you’re planning to refi, go to Zillow and check your neighborhood in the last 90 days.  They are fully within their rights to pick the lowest homes in your neighborhood and just use those.  And if you’re had REO homes lately, don’t do it.  Don’t waste your money.

We’re still waiting for the final word, but I don’t have high hopes.  I just thought maybe I’d save some of you. :)

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  1. says

    Ugh, we had a hard time w/that when we were refinancing, too. Homes w/smaller square footage went for way more than our comps, but since they weren’t “comparable”, the appraisal used the other ones. So aggravating!!!