But.... I can still get you what you want

[bankworking]

SC wants a $120,000 home equity. Says her house is worth around $400,000. Still owes almost a $100,000 on her first mortgage. County tax assessment says her house is worth around $210,000.

Obviously, we need an appraisal to verify the current market value. SC has no problem with this. SHE wouldn't sell the house for less than $500,000, so she knows it'll be at least $400,000.

Appraisal comes in... at $260,000.

Now, that's a big difference. BUT, she has fan-tabulous credit, etc.. To get her request amount into the best rate we offer, all we need is a loan-to-value under 85%.

The math: 120,000 + 100,000 = 220,000 borrowed. This is just under 85% of the $260,000 value.

So yay! We're good. We can do the loan at the best rate. All is well and right with the worl....

Oh no. Of course it wouldn't be that easy.

Her house is worth more.

WHY did our appraisal not give her a higher value?!!!??!!

This is outrageous. A travesty! It must NOT be tolerated! We have destroyed her faith in the health and well being of all that is light and good in the world and trampled it beneath the feet of our calloused heels.


Lady, this appraisal is a one-time use item.

It doesn't go on public record.

It doesn't go to the county.

It doesn't go to anyone but us.

It is solely for the use of determining if there is a high enough opinion of the market value to support giving you the home equity loan amount your requested at the best rate. In this, it has succeeded.

Just take your blasted loan and go, already! I got people with real problems to address.

*sigh*

[notalwaysright]

Aren't appraised values usually a lot less than a selling price? Is that a thing, or did I just imagine it.

Urg. These people. I would get them on a smaller scale at the fabric store. Say the customer had a coupon that said 40% off one cut regular priced fabric. But they're buying a bottle of acrylic paint, so that coupon doesn't apply. But! There's another coupon directly next to the first coupon, and that coupon will work. It's also 40% off. Is the customer happy? Noooooo, they're pissed because the coupons are "confusing" and "misleading" and they "can never use" the coupons. Newsflash, you certainly can use a coupon, you crazy pants.

(I don't agree with the way corporate puts out and phrases coupons, but if I see a coupon that will work and get yelled for it, it makes me cranky)

[EricKei]

My guess is that she bought it for roughly the appraised value a few years ago, did a couple hundred grand of renovations and expansions, and just never realized that you basically NEVER get back what you put into a house, with certain rare exceptions, unless you happen across just the right buyer at just the right time.

Then again, maybe someone told her this and she refused to listen/believe them.

[Aria]

Tsh. Does she like paying extra taxes? I'm not too happy with my appraisal going up by 40k from last year...

[eltf177]

My guess is that she bought it for roughly the appraised value a few years ago, did a couple hundred grand of renovations and expansions, and just never realized that you basically NEVER get back what you put into a house, with certain rare exceptions, unless you happen across just the right buyer at just the right time.

That or property values went down. It does happen...

Tsh. Does she like paying extra taxes? I'm not too happy with my appraisal going up by 40k from last year...

Exactly, mine got over assessed again this year. There's NO way I'm getting that much for it when I sell...

[dalesys]

Th-th-that person said I was a p-p-peasant!

[earl colby pottinger]

Really

Tsh. Does she like paying extra taxes? I'm not too happy with my appraisal going up by 40k from last year...

Imagine how she would act if she got her $500,000 value and then her taxes went up to match.

Her taxes would more than double!

That would be funny. Heck, is there anyway for the tax department learn her new value

[Dadeo]

Aren't appraised values usually a lot less than a selling price? Is that a thing, or did I just imagine it.

I think most of the time that's the case but the house I had before this one was appraised at 60K over what we could (and eventually did) sell it for. And good luck appealing that 'cause they're never wrong.

[icmedia]

My thoughts are that she has been watching too much HGTV, and thinks that because her house is as nice as/nicer than those houses, she knows what the market value is. Unfortunately, she hasn't taken into account her market area, recent comps in her neighborhood, etc.

Heck, my house, dropped into a decent neighborhood in California, would be worth roughly 10x what it is in my small, suburban, Ohio town.

[Nunavut Pants]

In my area, more like 50x. Silicon Valley real estate is stupid-expensive!!

[notalwaysright]

I think most of the time that's the case but the house I had before this one was appraised at 60K over what we could (and eventually did) sell it for. And good luck appealing that 'cause they're never wrong.

I think my parents contested an appraisal because the appraiser actually surveyed the wrong property. If you looked at the description it was clearly our neighbor's property. Not sure how that happened, both addresses have their numbers posted very visibly.

Took a peek at recently sold places in my neighborhood, just for funsies. One house was appraised at $205,000 and sold for $331,000. So I'm sure you're right, and it does vary depending on where the house is. The market here is crazy. Houses are selling fast and for high, and there's a shortage of houses on the market. Not as bad as California, though.

[protege]

My thoughts are that she has been watching too much HGTV, and thinks that because her house is as nice as/nicer than those houses, she knows what the market value is. Unfortunately, she hasn't taken into account her market area, recent comps in her neighborhood, etc.

She sounds like the idiot who lived next door to my mom. A growing family meant that they had to put their house up for sale. She thought, that because it was in the 'burbs and had a lot of money spent on it...the place was instantly worth $250K. Naturally, the house was on the market nearly 2 years. Where I live, $250K isn't going to happen, especially if it's that weird purplish brick popular in the 1960s...and you've cut down all of the trees, and removed every last bit of shrubbery from the (terraced) back yard. When the house finally did sell, they barely got $185,000 and that was only because they were desperate.

[Racket_Man]

My fun facts about my recently purchased house

1. county assessment - $62,000 Ok possibly value based on not really updated info
2. recent appraisal - $50,000 Appraiser used comps that were NOT comparable to my house and lot size
3. ZILLOW approx. price $70,000 you have got to be kidding. the house next door is listing at $88,000 and it has at least 2.5 times the square footage full 2 floors a decent basement and a decent attic NO back yard so that is a downside

I have watched enough HGTV and know my house value is not all that far off the county assessment and the indie appraisal for the mortgage. BUT Zillow is something else.

[earl colby pottinger]

Location

My thoughts are that she has been watching too much HGTV, and thinks that because her house is as nice as/nicer than those houses, she knows what the market value is. Unfortunately, she hasn't taken into account her market area, recent comps in her neighborhood, etc.

Heck, my house, dropped into a decent neighborhood in California, would be worth roughly 10x what it is in my small, suburban, Ohio town.

Location is very important, but so is market pricing.

My cabin property only cost $20,000 to buy but I sold it for $80,000 because that was still cheap compared to what other cottages in the area were selling for.

My house costs $169,000 to buy but I sold it for $380,000 in November, I am told if I held off to this month I could get $425,000 for the house.

Yet at the same time last week I was looking at a small house in the States that was $34,500 but instead am looking at a custom built home that will cost me $60,000! And I consider that expensive for what I will get.

Location, location, location --- it make a big diffirence in the price.

[bankworking]

The biggest thing that got to me was that I could not get it through to her that it didn't matter that the appraisal came in low. She wasn't planning on selling. She wasn't planning on refinancing. The loan she requested was approved at the best rate possible. Our appraisal was used for us. It's low. She doesn't agree with the value. Okay. Here's a copy of the appraisal. Request a different company if you ever need a new one.