In this post I want to share some information about appraisals and making sure you get an accurate one if you are refinancing your home or obtaining current market value. I do this every time for my clients whether they are searching for a new home or selling their current one. I want to ensure an accurate appraisal is always provided. For the past several years, home values have been low and making sure my homes appraise out is vital in keeping a deal together.
Appraisals are based on recent sales prices of other comparable properties. And in rising price markets, those sales prices might not be high enough to support the latest sales. Low appraisals are becoming a bigger problem for many would-be buyers and refinancers as home values have started to stabilize and rise in some markets.
On Friday, the federal government issued new rules aimed at improving the appraisal process as it pertains to high-interest mortgages on rapidly appreciating homes. There are many places in California reporting appraisal problems so this info may come in handy.
- Make sure the appraiser knows your neighborhood - Home values can differ from one neighborhood to another.
- Provide your own comparables - We always try to provide at least 3 solid comps. We save them the hassle and help ensure more accuracy in the final report.
- Document all improvements - Having a list of all upgrades and renovations will help you tremendously. It will add value to the final appraisal report. Knowing what of these items adds value is crucial to you getting the most accuracy.
As an agent, I am always here to help with your real estate needs. Feel free to call or e-mail anytime!