Thursday, July 3, 2014

Why an Appraisal???



Refinance 
Need an Appraisal??

Have you ever refinanced your home?  Saved money by not getting an appraisal?

Mortgage Office provide some comparable data that seemed legit as it showed similar size homes near by your house??

Recently, I had a client approach a mortgage officer on refinancing to get today's great interest rates.  This client questioned the accuracy of the mortgage officer's select homes to based the value of the client's home.

He was alarmed at the "low" valuation. He wondered if he should pay for an appraisal thought the mortgage officer told it wasn't necessary.

Though I don't know the mortgage officer nor which to say anything bad about him, I told my client I would take a look at recent sales.

I must note that I have in numerous occasions provide comparable home sales to clients to present to their mortgage officer as means to establish the value of the house.  As a Realtor, I know neighborhoods and can spot similar homes very easily. 

Thus, I looked at the neighborhood/area the client's home was located to find comparable sales.  In a matter of moments, I found numerous recent sales that weren't included in mortgage officer's analysis of the subject's home's value.

Though I need to advise my client that numerous of the homes were update very nicely(my client's reason for questioning mortgage officer's work), it was very evident that many better comparable to use that would
improve the refinance number.

So why would an appraisal be needed????

To establish a disinterested third party assessment of home value, the home appraiser provides the detachment and professional analysis of home features, home details, and market conditions to arrive at
fair market value.

In mortgage refinancing, a third party assessment is frequently needed as the bank seeks the detached professional analysis.  In this situation definitively needed as the bank had already "anchored" a value that my assistance would have only slowed the process.

Thus, if you have a great Realtor that stays in contact and you can trust, call him or her at your first thought of refinancing as he or she typically can provide the market information a bank will gladly take.

Yet, if you or the bank seek a detached analysis, a professional appraiser is the route to go!!!!!  And I can always connect you with an great appraiser that your bank will know and appreciate their work.

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