Home appraisals?

[momof3b1g]

Has anyone gotten a home appraisal for a bk? We are getting one in hopes that it comes back lower what the county says its worth. They say we have over $40,000 in equity. $60,000 if they use 2009 value. Which would be used if we don't file till January.
What do they look for when doing an appraisal?

[justbroke]

Has anyone gotten a home appraisal for a bk? We are getting one in hopes that it comes back lower what the county says its worth. They say we have over $40,000 in equity. $60,000 if they use 2009 value. Which would be used if we don't file till January.
What do they look for when doing an appraisal?

I did one.

The appraiser actually performs up to three different pricing models. First is the market analysis, second is the cost to build model, third is the rental model. (I used different terms than they use.) Generally, though, they only use the market and cost model.

What they really look for is the trends in the area by looking at what they call comparables. These are homes like yours in your area. Preferably they are on your street. Then they use the differences between your house and the comparable and come up with a price based on the differences.

That's the market analysis. It does include looking at the MLS (master listing service) of homes for sale as well.

Then, they'll calculate how much your home would be to build from scratch.

They usually chose one of the models and make an estimate of value.

That's about it.

[momof3b1g]

I did one.

The appraiser actually performs up to three different pricing models. First is the market analysis, second is the cost to build model, third is the rental model. (I used different terms than they use.) Generally, though, they only use the market and cost model.

What they really look for is the trends in the area by looking at what they call comparables. These are homes like yours in your area. Preferably they are on your street. Then they use the differences between your house and the comparable and come up with a price based on the differences.

That's the market analysis. It does include looking at the MLS (master listing service) of homes for sale as well.

Then, they'll calculate how much your home would be to build from scratch.

They usually chose one of the models and make an estimate of value.

That's about it.

Well we live in the country. Does that make a difference? There are a few new homes but also traliers and older homes. Our home is old (70's).
Do they not take into consideration things that are wrong with it?
The roof leaks, the laundryroom is unfinished. The kitchen/diningroom as the original cabinets and flooring. 2 bathrooms are orginal. It needs alot of work and updating.
Some of the carpet is even very old.
We don't think its worth the $144,000 for 2008 and for sure not the $160,000 for 2009.

[StartingOver08]

Yes, they take condition into consideration. The weight is given to comparable sales. Since we are in a declining market, there will be information on the status of your particular market - stable, declining - etc.

The comparable sales do have to be similar to your property. For example, you can not compare a 1970's ranch style CBS home on one ac to a home in a gated subdivision built in 2004.

When you are in the country, usually there are other comparisons as well - for example, number of acres, paved or unpaved road, and there is a radius that is acceptable for appraisals. In the City the radius varies from 1/2 mile to one mile. In the country it is expanded for obvious reasons.

Also, the new appraisals will mention the method of sale - short sale, bank owned, etc. You definately want to inform the appraiser that you are in a BK and are looking for a BK appraisal.