Contest Appraisal Value for a Home Loan

You only get one chance to make a first impression.

Why do people call Appraisers? Seriously? When do Lenders, Realtors, Buyers, and Sellers call an Appraiser? 99% of the time it’s to yell at them for coming in “low” on a value. Will be too embarrassed to admit fault. Ego will be harder to overcome. They get reviewed by the TALCB – they sent his report to the state and now he has to fight it.

A good defense is a good offense. Be proactive and help the Appraiser before they inspect the house. Stick a package on the front door and tell them to email you for additional comp information.

Change in substance / material – not change in “feel, functionality, or taste” –

Appraisers are people too and you need to remember that you catch more flies with honey than you do vinegar.

Hit issues head on – point out the problems. Ex: the neighborhood over there is bad because… geared towards lower quality homes, prefab cabinets, carpet and vinyl flooring.

The only way to show it on paper is if I can show it on paper. Comp 1 had and Comp 2 didn’t have it.
“that’s just what it is” for add-backs is not a good answer.

If it’s a new community and no comps – provide contracts and new contracts – show the market moving and that people

It’s not just point out the things in your house, it’s point out what’s NOT in the compeition.
Compare you to what that buyer might also consider.
Comparing Melissa and Anna – if low income homes in both cities sell for the same

Appraisers’ job isn’t to tell us what one person will pay for the hosue, it’s what “everyone” would pay for the house.
Don’t send price per ft circled – it doesn’t matter, even the timeline changes the prcie per sq ft,

how do you prove trend??? Look at 12 and 24 months BUT you need to consider things like: initial sales spec, later are custom homes, and then maybe

Tips For New Construction

See if we can get the heads up for who’s doing it and if the seller can provide additional comps. (get upgrades, sales price, etc.).
If the appraiser never speaks with you and does a custom home then the value is probably low because custom jobs will have upgrades.

Detail what the neighborhood amenities.

 

Talk to your competing builders and share comps with one another. You need at least one on theh apprasil anyways.

Doesn’t like getting just and address and sales price – needs/wants the difference in the houses and tell him what you want the adjustments for (i.e. added extra bath, converted jack and jill, etc.).

Make sure you put it in MLS.Cancel out the bad / low sales price

In MLS – put lot size – They have irregular shaped lot (corner lot, bigger lot, more fencing, etc.) – is it better to give the overall size of the lot. There’s a place in MLS where you can check “irregular”

 

Where do adjustments come from?
In anna, the lot cost will be higher because of all the amentities in the ‘hood. Even if it’s not there it still gets counted.
They are requried to drive there so they can pay attention and see what the hood has – i.e. all the amenities.
Standard fire place w/ option to upgrade to brick and stone ($3,300) – the apprasier doesn’t get value. It’s personal taste.
Ex: intercom won’t.
<> crown modeling, different kinds of hardwoords, shutters and window treatment, mature trees,
wrap around porch and balconies and hardscape- should be some value there. When things get close (i.e. within $5k of value) they can look for smaller things to get value.
Creek lot, golf course lot, busy street back-up, (lower end houses don’t matter because higher-end folks are more picky). If not comps for he may call a few builder and realtor and get lot discounts.
Wood floors add value ($12 sq ft for wood, $9 carpet), upgraded fixtures, BUT tell them where the hardwood IS. Is it everywhere? Only in the forier. Give Sq Ftage of what’s normal and what this one has. If we’re the only house then it won’t get value.
Upgrade kitchen is better than fireplace.
Ex: a lesser title everywhere with granite counter vs. house
Upgrades stone on elevation BUT stone already everywhere else you won’t get any real value for “nicer” stone
Slide in gas range vs. cooptop, vent hood, etc. – $3,200 for costs – “worth every penny”
If you email or put in MLS then highlight big ticket items.