How can i get a higher appraisal??

Question

I bought my first home in March of 06. Im 28 and the best rate i could get at the time was 9.5%. My intent was to rough it out untill a year later, so i could refinance. After working with a family friend in the mortgage industry, everything is set for me to be locked in around 6.5% but my problem is my house appraisal is too low in order to finance the 95% of the loan. So basically i need to have my house appraise around 20-30k more than it is now. Any suggestions as of what low cost things i can do??? Any appraisers out there who know what to look for to help me out?? Im so close to reduce my monthly payment!!! Please help me

-struggling broke homeowner

Answer 1

The value of your property is based upon comps in your area. If houses in your area are selling for 300k and you need the value to be 325k you should have a better house than the previous houses that have sold. If it is in the same condition or worse then it will not appraise. The main things that help your value are square footage, # of bathrooms, bedrooms, garage, condition, location and amenities. The only way to really boost your value is in the condition area if you can't add bedrooms or bath, finished basement etc. Your best bet is to wait till at least two homes sell in your price range and then refinance.

Answer 2

First off, appraisals are only a matter of opinion. Appraisers are trained for their job, and even though you will get different numbers from each one they should all be in the same ball park. The things you could change that would really boost the value are also expensive - garages, bathrooms (do you have more than 1? are they modern?), new kitchens, hardwood flooring, landscaping, more bedrooms. Things like new carpeting and paint don't really add much value, they just make a buyer more interested since it less work they have to do. So basically what I am trying to get at is - to increase your value $20-30k, you will need to spend quite a bit. Have you talked with other banks to see what they have to say about your situation? Shop around and you may find a bank that will refinance. If you shop around within a 2 week period all the inquiries from banks will not affect your credit score. Remember appraisals are based on comparables in your area (homes with same number of beds, baths, sq ft, garages), sounds like you want to get this done soon, but if talking to other banks don't work, I'd wait until the market picks up a bit. Good Luck!

Answer 3

If you’re thinking of putting a piece of real estate on the market, you may be wondering how to come up with a profitable asking price. For many sellers, the first step is to contact an appraiser to find out the true value of the property. A higher appraisal equates to a higher asking price and eventual selling price. There are some things you can do to get a higher appraisal.

Start with a good, deep cleaning. Scrub the dingy spots, dust for cobwebs and remove any clutter. Your deep cleaning should be done inside, outside and around the yard.
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Step Two
Touch up paint and repair any parts of the house that are broken or in disrepair
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Step Three
Visit your county clerk or county recorders website to find recent selling prices of property in your neighborhood. Have these on hand when your appraiser arrives.
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Step Four
Look up the plot plan or a recent survey of your house and land if you can. An appraiser may want to reference it.
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Step Five
Dig out maintenance records and system analyses for things such as septic systems, wells and structural reviews. The more informed the appraiser is, the better the appraisal will be.
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Step Six
Create a bulleted list of major improvements and upgrades, including installation or application dates and costs.
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Step Seven
Spend a few minutes and a few dollars planting some colorful flowers. If you have brown thumbs, pick up a few pre-potted flowering plants from the local garden center and place near entryways.
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Step Eight
Interview appraisers, seeking one with experience appraising real estate in your expected price range and area.
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Step Nine
Inform your appraiser if a home in your area sold far under or over market value and why. Upgrades like recently replaced wood floors or carpet, heated floors, new wood stove or solar power capabilities may not be part of the closing record but can significantly alter the selling price of a home.
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Step Ten
Make sure all parts of the house and property are accessible. An appraiser will need to see the inside as well as out, so make sure all entries and exits are easy to get to.
Tips & Warnings

Don’t leave leaky faucets, missing door knobs, broken windows or holey walls for your appraiser to find—fix them first. Differed maintenance will cost you at the closing table. For example, peeling paint might exceed $200, a leaky roof might dip $5,000 or more into your profits and a messy yard could cost $500 or more.
Don’t expect a professional to give you a more favorable appraisal than you deserve.
Don’t offer a bribe of any kind. Not only is it against their professional oath, it is unethical.
Don’t underestimate the power of a high appraisal. A home appraisal is essentially a professional opinion of the property market value.
Don’t be inconsiderate of their time. If you must reschedule, call 48 hours or more in advance. Make sure you have at least 2 hours to dedicate to the appraisal.

Answer 4

An appraiser is only going to appraise your house for CURRENT market value. Over the past year or so, market values have been dropping, and your appraisal reflects that market drop.

If you're financed at a 95% LTV ratio, there's not much you can do. Any appraiser who submits an appraisal at what you paid for the house over a year ago will be questioned on the validity of his appraisal. Lenders are FULLY aware that market values have dropped, and will be very interested to see why YOURS has not dropped.

If the appraiser cannot justify a value matching what you paid, you will have to come up with cash at refinance closing to cover the shortfall in your new mortgage.

Answer 5

The stuff that costs little money are the things that sell a house. make sure the landscaping is in great shape, everything is clean and in good repair. Sometimes you can add a few little things in the front to make the front yard and entrance more appealing.

But the main thing that an appraiser will look at are the comps, so if the other houses in the area are selling lower, that is what you have to work with. But improving the eye appeal of the house will put you in the upper level of the comps.

Good luck

Answer 6

$20 to $30K sounds more like adding a few square feet or a bathroom????

You may have to ride this out a few more months most properties appreciate at a minimum of 3-5 % per year. Or you can borrow some money from a friend or family member to make up the difference and take the cash to closing - you would lower your payments, but need to work out a repayment agreement for personal loan.

Answer 7

You purchased at the height of the housing bubble hoping that housing would continue to appreciate in the double digit rates, that preceded, that unfortunately is not happening, in fact with the glut of housing on the market, and the loss of many potential buyers the opposite has happened, the housing market is going though a correction, just as the dot com business's did in the 90's. This is just the beginning best you can do is hang in there and not join the statistics that are becoming prevalent in the housing bubble

Answer 8

I agree with James. There is no quick fix that you can do to add that kind of value.

Value is largely determined by using 3 comparables (homes that have recently sold in your area that are similar to yours). Therefore the marketplace drives value more so than simple home improvements.

We've seen values stall and in some cases go down recently due to the sluggish purchase market and excessive foreclosures.

In my market area in Illinois, we're seeing little to no appreciation at this time.

Hang in there - it always turns around - just takes time.

Answer 9

It seems you might of got it at the peak of the housing boom..
You really can't do much to add that much value to your house with-out spending more money..Depends on how the house looks now...Are the bathrooms and kicthens updated? Those are the two rooms that can really add value.
I would wait another year and see how the market is..
Good luck