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Is it wise enough to do the appraisal?

Posted on: 06th Jun, 2007 05:20 am
We are about to fix our home so that we are able to sell it in the market. But I am not sure as to what price I should ask for. So, I called an appraiser today and he said the appraisal would cost around $450. Would it wise enough to pay $450 for the appraisal or are we just wasting our money away.
Welcome Fraser,

I feel that you should get the appraisal done. But you can at least look for a cheaper appraisal. A year ago when I moved out and shifted to my new home, my financial advisor advised me to do an appraisal and the cost wasn't much though. You can also call up your mortgage company or lender to refer an appraiser.
Posted on: 06th Jun, 2007 05:30 am
That price quoted for the appraisal might be the standard price for an appraisal. I do believe in "you get what you paid for".

If you are not going to use a Realtor to list your home, I would definetely get an appraisal or at the very least speak with a couple Realtors as to what they think you should ask. If you are using a Realtor you do not need to get an appraisal done.
Posted on: 06th Jun, 2007 10:12 am
That's so nice of you Mike, but is it the rule, i mean if i go with a realtor, an appraisal isn't required?
Posted on: 07th Jun, 2007 05:03 am
No it's not a rule. What I meant by that is if you're using a Realtor to list the property they will be do their own research to help you decide what you should list the home for. They can evaluate the market to come up with a price you should list at depending on what your situation and time frame to sell is like. If you have the home for sale by owner, how do you know what to ask for it? Definetely do NOT rely on online valuation services such as zillow for a value as you could really burn yourself.

The appraisal will be required by the purchasers mortgage company.

Hope that clears it up?
Posted on: 07th Jun, 2007 09:18 am
yeah its pretty clear now Mike.
Posted on: 08th Jun, 2007 05:31 am
"Definetely do NOT rely on online valuation services such as zillow for a value as you could really burn yourself."

I too agree with Mike, Zillow predictions vary by huge margins. The difference in actual price and what is shown at Zillow are substantially different most of the times.

Miller
Posted on: 08th Jun, 2007 06:31 pm
"I too agree with Mike, Zillow predictions vary by huge margins. The difference in actual price and what is shown at Zillow are substantially different most of the times. "

Yes Zillow especially. They are actually being sued by the state of Arizona right now because they claim to provide property values, but do not hold any sort of appraisal license in our state.

Just on my house they claim its worth 45-50k less than what I feel its worth. Then again home owners always seem to over estimate :)
Posted on: 12th Jun, 2007 09:01 am
Mike I did not know they are getting sued in Arizona. You are correct that without license how they can claim to be able to provide property values. Really very silly of them. They should have contacted a real estate attorney before putting such claim. But that’s there concern now on how to come out of this mess.

Miller
Posted on: 12th Jun, 2007 01:30 pm
Hi,

I am in process of buying new home from landlord for $30,000 and need to some basics things:

I agreed to a purchase price of $30K, the tax assessor gave a value of 31, 500 but the appraised value turned out to be 28,000. What I want to know is, who pays for the title work already completed if the deal does not work out?

Who pays for the appraisal fee if the deal is not finalized?

I can put down 20% down payment. But am I correct in thinking that the mortgage company won't do the loan of the house doesn't approve for $30k. is it possible that I do another appraisal so that I can reach the 30K mark.
Posted on: 28th Jun, 2007 03:02 am
Hi Maddy,

Welcome to the forum.

If the home hasn't been appraised for the sale price, then I don't think you should for another appraisal as it would cost you again. Instead, you should try to negotiate with the seller and bring down the purchase price as equal to the appraised value. If the property hasn't appraised for $30,000 is not your fault at all, it's the seller's problem. He doesn't want to sell for $28,000 and so why do you want to buy it for $2000 extra.

As far as the mortgage company offering the loan is concerned, it will provide you with a maximum loan amount equal to the appraised value of the home and not the purchase price. Now for the fees required by title company and the appraiser, these are the costs that you will have to pay and if the deal doesn't work out, it's up to your lender to find out if he will refund you a certain percentage of the costs.

Hope this helps...

God bless you.

Samantha
Posted on: 28th Jun, 2007 03:35 am
Hi Maddy,

The appraisal value of your home has come out to 28000.Now, when you can make the down payment of 20%, I think you should not go for another. But if you still think the appraisal to be 30%, you can go for another appraisal and confirm about the costs.
Posted on: 28th Jun, 2007 04:57 am
" is it possible that I do another appraisal so that I can reach the 30K mark."

it is not necessary that a new appraisal will give the value to be 30k. it can be that this new appraisal also show the value to be 28k
Posted on: 29th Jun, 2007 07:08 pm
Yes why would a buyer want an appraisal that is more than what another appraiser felt the home is worth? Why would you want to pay for another appraisal so you can pay 2k extra for a property? Instead use the first appraisal as a bargining tool to get them to lower the price!
Posted on: 09th Jul, 2007 01:19 pm
"Why would you want to pay for another appraisal so you can pay 2k extra for a property? Instead use the first appraisal as a bargining tool to get them to lower the price!"

Good point Mike. Using previous appraisal would be better to get a lower price.
Posted on: 09th Jul, 2007 01:33 pm
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