This coming week I am refi’ing my house to pull some $$$ out so I can invest in another property. I’m looking to pull out a decent amount but for that to happen my house must appraise at X.
Is there anything I can do to convience the appraiser that it’s worth X and not X-1? It’s just coming down to the nitty gritty and I’m starting to get paranoid that it won’t appraise at what I need.
???
Hi,
As you know, an appraisal is by definition a subjective point of view, it isn t an exact science. Although it has its own methods ( The comparison approach, the replacement cost approach and the income approach).
So an appraiser never can exactly tell anybody that your property is worth $100,000 and not $110,000. In identical situations to yours, what i usually do, is open the game and tell directly the appraiser what amount i need him to value.
But i must be sincere with you and say that sometimes i was successful, sometimes not!
Good luck,
Paulo
It’s always a bit tense when you know your property has to come in at an exact value for a deal to work. I have been in that situation many times as a mortgage broker. While you can certainly let the appraiser know what you need the appraiser to come in at, there is no guarantee they will give you that value. Any diligent appraiser will do their work and make sure the value they place on your property can be supported by a sufficient number of comps. After all, their license and reputation is on the line if they appraise a property without supporting comps. Realistically they won’t stretch too far to make a deal work if it isn’t realisitc. Mortgage companies have a bit more pull as we give the appraisal companies a great deal of business. So sometimes, it’s easier for us to have the appraiser stretch the value. Your mortgage broker would have have better luck speaking with the appraiser rather than you pushing the issue. The bottom line though, is that if the supporting comps just plain aren’t there the appraiser can’t go too far out on a limb to help you out. I hope you get the value you’re looking for! And PS, if for someone reason the value does come in just shy (notice I said just shy, not way off) of what you need ask your mortgage broker if he can speak with the appraiser- and see if the appraiser can find additional comps to boost the value to what you’re looking for…
My first question to you is why are you refinancing rather than asking for an equity line? Then you can use the money or not and not pay interest on money you are not using. I did my equity line over the phone – it was amazingly easy.
For my investment properties: I’ve always found that a decent appraiser works with the lender to provide me with what I need based on the risk level the lender is willing to accept.
You can tell the appraiser what you need the property to appraise for. They may even already know when they come to do your appraisal.
You can as ask a Realtor for comps on recent home sales in your own neighborhood. Preferably HIGHER than what you need. The appraiser may be suing MLS comps as well as public records.
I happened to be painting my home’s interior during a refi appraisal and the appraiser even listed that there was a project going on in the house that further increased the value of the property.
An appraiser will not (and shouldn’t) jeopardize their license and lie. But they usually will be subjective and co-operative.
Thanks for all the replies. I’m not asking for a HELOC because I know I need the money, and I know how much I need. I’m not looking for another bill. I’ve gotten it worked out so I can get this magic number and actually not pay more on my monthly bills.
The appraiser will know what the house needs to come in on because the lender has printed it on the paper he will be bringing. I’m also in the process of adding 1 or 2 more bedrooms, and I’ve already added another bathroom to the property, so I hope the same happens from me as it did you, JeffInCT.
Thanks again, and I guess I’ll just mention how much it needs to appraise for and not push the matter what so ever, as to not get on the appraisers nerves.
Good luck Mintee! Let us know how it turns out – we’re pulling for you.