How to determine appraisal price?

[Anonymous]

We are looking to refinance and are tyring to figure out if our house will appraise high enough. Obviously, we can spend the $50 to get an appraisal but I am doing some of my own legwork first. We have a 5/6 br (6th bed room doesnt have a window but does have a closet), 3 ba house. Its a rambler so the top floor is 1950 sq ft, but the walk out basement is the entire floor plan of the house, although it doesnt get counted in the sq footage, right? We paid $460K.

On our block, 2 other houses sold for $585K (4br, 3.5ba, 4076 sq. ft - although the sq ft sounds off) and $625K (5br, 3.5 ba 2280 sq ft). A few blocks away, a house that is a similar model to ours - "House C" (6br, 3 ba, 1941 sq ft - also a rambler) sold for $460K. Ours has a deck and this one doesnt and we also renovated the kitchen after moving in (appraisal last summer was for $470K, but with fewer comps.) We also back up to the park with no neighbors behind us and House C is on a busier street.

There are also a couple houses nearby with sq ft between 1400-1700 that sold in the low $400's and high $300's.

Any ideas on how I would estimate the appraisal? Is the kitchen reno, deck, and less busy street location sufficient to get us a higher appraisal price? Or will the lower priced houses drag it down?

[Anonymous]

Oops, I meant $450 on the appraisal.

[Anonymous]

New info - 2 of the lower priced houses ($350-370K) are the same models as my house but without the additions and renovations. House C is also the same model with the renovations and sold for $460K.

The higher priced sales are different models.

What are the chances we can get an appraisal of $460K with 2 comps so much lower and only one the same?

Will an appraiser even look at the other models if they are on the same street and have similar square footage or will they only look at the same models?

[Anonymous]

what does http://www.zillow.com say

[Anonymous]

Anonymous wrote:what does http://www.zillow.com say

$447,500 - but I dont think that accounts for the renovations. We need an appraisal price of $461K to refinance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:what does http://www.zillow.com say

$447,500 - but I dont think that accounts for the renovations. We need an appraisal price of $461K to refinance.

create a zestimate, add in your renovations and select comparable sales

[Anonymous]

Here is my experience: the appraiser skipped houses really close to ours because he wanted similar square footage. He found others within 5 miles or so, including one o/s the beltway. We are inside the beltway. Anyway, You will get no credit for being on a quiet street or for backing up to a park. Well, at least if you appraiser is like ours. I think it is ridiculous.

But the appraiser will give you credit for renovated kitchen, deck, basement - assuming the comps don't have those things.

For example, If a comp has no basement and sold for $600,000, then the appraiser may make the comp value $629,250 (that is assuming you have 1,950 s.f. in basement and the appraiser uses $15 per s.f.)

our appraiser used $15 per s.f. for basements and $45 per s.f. for upper levels.

our appraiser added only $7,500 to comps that didn't have a renovated kitchen. He also added $5,000 to comps that didn't have a deck and $5,000 to comps that didn't have a fireplace. He added $15,000 to comps that were rated in worse condition than ours. Finally, he added $5,000 (I think) to comps that had one less bathroom than ours.

House C sounds like a comp our appraiser would have used. Unfortunately, he probably would have used the nearby houses you mention.

our appraisal came in too low

[Anonymous]

Anonymous wrote:Here is my experience: the appraiser skipped houses really close to ours because he wanted similar square footage. He found others within 5 miles or so, including one o/s the beltway. We are inside the beltway. Anyway, You will get no credit for being on a quiet street or for backing up to a park. Well, at least if you appraiser is like ours. I think it is ridiculous.

But the appraiser will give you credit for renovated kitchen, deck, basement - assuming the comps don't have those things.

For example, If a comp has no basement and sold for $600,000, then the appraiser may make the comp value $629,250 (that is assuming you have 1,950 s.f. in basement and the appraiser uses $15 per s.f.)

our appraiser used $15 per s.f. for basements and $45 per s.f. for upper levels.

our appraiser added only $7,500 to comps that didn't have a renovated kitchen. He also added $5,000 to comps that didn't have a deck and $5,000 to comps that didn't have a fireplace. He added $15,000 to comps that were rated in worse condition than ours. Finally, he added $5,000 (I think) to comps that had one less bathroom than ours.

House C sounds like a comp our appraiser would have used. Unfortunately, he probably would have used the nearby houses you mention.

our appraisal came in too low

Did he use the same model homes? Or just home with the same square footage? In our neighborhood, there are 5 or so models. Our base model is the smallest, but we have an extension. So the cheaper houses that are the same models are 1200-1500 sq ft and ours is almost 2000 sq ft. If he uses houses with the same st ft, but different models, we are in a much better place.

[Anonymous]

When did those other homes sell?

Appraisers want similar square footage. Model doesn't necessarily matter. Kitchen reno might not make a difference, either.

[Anonymous]

Anonymous wrote:When did those other homes sell?

Appraisers want similar square footage. Model doesn't necessarily matter. Kitchen reno might not make a difference, either.

All 3 of the same model sold within the last 2-3 months.

[Anonymous]

The appraiser will also consider the amenities of the subdivision/community - HOA fees, pool, tennis courts, etc.