Appraisal Question
I’m refinancing my coop in Cobble Hill, and just got my appraisal. Although it is high enough to allow refinancing, I was still shocked at how low the evaluation and wonder if I should bother protesting. I have a floor of a brownstone, 875 sq ft, 2 bdrms, 1 bath, lots of original detail, working…
I’m refinancing my coop in Cobble Hill, and just got my appraisal. Although it is high enough to allow refinancing, I was still shocked at how low the evaluation and wonder if I should bother protesting. I have a floor of a brownstone, 875 sq ft, 2 bdrms, 1 bath, lots of original detail, working fireplace, renovated kitchen and bath includng granite counters, excellent condition, and the appraisal was for $485,000. Even in this market, a 2 bedrooms in Cobble Hilll are being advertised at $600,000 and up. The evaluation is still much higher than I paid 10 years ago, but I worry that if I suddenly needed to sell this appraisal could affect price. Is it worth the effort to complain, or should I take the refi (at excellent rate) and run?
The above link from the NY Times shows the recent sale of a $849,000. sale in which there was a “bidding war” and the property went for $80,000. more than the asking price.
http://www.nytimes.com/ref/realestate/0802ressales.html?ref=realestate
http://www.zillow.com/homedetails/489-16th-St-Brooklyn-NY-11215/30588655_zpid/
Check out these 2 recent sales and then evaluate the “Chicken Little” remarks.
Thanks everyone for the comments (well, almost everyone). You’re right, the appraisal does allow me to get the refi done, I’m not planning to sell any time soon, and who knows what appraiser based it on–one of the things he noted in the report is that there have not been enough comparable sales in the immediate area in the last 12 to do a comparison, so he estimated based on average decline in sale prices. I’ll go back to more generalized anxiety now.
“The appraisal really has no bearing on what someone might pay.”
I agree with DIBS. People are likely to pay much less.
“The evaluation is still much higher than I paid 10 years ago”
Like 3X higher? How ’bout your salary back then compared to what someone with those years of experience/skills would earn today? Not quite 3X, right?
“I worry that if I suddenly needed to sell this appraisal could affect price”
Then you should sell now get into commodities/gold. Prices/appraisals will only plummet more. We’re coming off of a historic housing boom that aint comin’ back. Buy back in for lower $/(SF & location) when Case-Shiller stabilizes, YOY. Even if you’re already underwater, don’t let your ears pop even harder.
Good luck!
***Bid half off peak comps***
This appraisalserved only one purpose, to get your re-fi loan. Its job is done. There is no point to protest. The appraisals changes with new climate, new appraiser, a up swing, down swing market.. your neighbors renovation or lack of. too many variable. Also, keep in mind what is listed may not be the sold price. Leave it along until you actually is looking to sell. Why worry about possible future problems today.
An appraisal is based off of recent SALES, not listings.
With that said, it’s also not a reflection of what the market will pay.
if doesn’t affect your refi – don’t worry about it.
This is not some public record. And there is no reason for appraiser to be accurate — all they need to do is get appraisal in for what will close the deal. If you were selling and someone wanted to pay $600k for your apt…you’d get an appraisal for that amount.
take the money and run man you are in the clear. How much equity are they looking for in refi’s now anyway? Were they demanding liquid assets on top of that?
The appraisal really has no bearing on what someone might pay. That said, as you know, it will have an effect on what size mortgage they are able to secure.