I feel like the bearer of bad news so often when it comes to value. So many homeowners feel their home is worth more, when we are doing a refinance and in some cases a purchase.
I prep every client about the appraisal process and the possibility the value will come in below expectation. I let them know that once we get an appraisal, we will immediately get them a copy for them to review. I share the process if a decision is made to challenge the value. I also explain that the majority of the time, the challenges aren’t successful.
It is always wonderful when the opposite happens. No matter purchase or refinance. We just received an appraisal done for a first time home buyer that we are doing 203K loan for. The home was in Plainfield, the purchase price is $64,000, the renovation portion is $15,000 and the appraisal came in at $129,000, now that is what you call instant equity!
I wish it was like that each and every time, but unfortunately that is not the case.
Check out this article for more details:
17 Percent of Homeowners Undervalue Their Home By: Steve Cook
