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Need home equity loan - should I go for appraisal again?

Posted on: 04th Sep, 2007 03:20 am
i've bought an older house in my neighborhood for 70k a few years ago. recently i've asked my lender to see if i could get a home equity loan and as the appraised value came out to be 78k, the lender said i would not be able to borrow much. but to my surprise the house just behind my house it's a carbon copy of the same and it's been sold a year after for $140k. can i debate with the lender and ask for another appraisal to be done???
Welcome Allen.

You can dispute the former appraised value with the lender but I don't think it will work out for you. There will probably be no change in the appraised value. At the most you can go for another appraisal with the same lender or with an appraiser appointed by you.

Thanks.
Posted on: 04th Sep, 2007 03:26 am
When there is such a big difference in the appraisal of similar houses then you should ask for a re appraisal.

If you are not satisfied with the re appraisal then contact few other lenders. You need not stick with this lender if you know that the appraisal conducted on their behalf is not correct.

Miller
Posted on: 04th Sep, 2007 03:01 pm
When did the model match home behind you sell? Do you know why it sold so high?

If you just had your home appraised at 78k and then the other one sold at 140k, there is likely a big difference in the two houses or something fishy about the sale.

Remember it takes 3 comparables minimum on the appraisal. If one home sells for far over what the rest of the neighborhood is selling for it will likely not be included in the appraisers report.

Good luck!
Posted on: 04th Sep, 2007 07:29 pm
Hi Allen,

I agree with Mike that there must be some great differences between your house and the other house of the neighboring area. You must find out the difference first. Otherwise you cannot go for a debate with your lender without a solid ground as he will not listen you.

I think it is better if you go for a second appraisal instead of debating with the earlier one. You may find a rise in your home value with this new appraisal.
Posted on: 05th Sep, 2007 12:26 am
"it takes 3 comparables minimum on the appraisal"

Sorry Mike, but i couldn't get you.
Posted on: 05th Sep, 2007 05:54 am
sorry I wasn't detailed enough. What I mean is it takes 3 comparables to make a value. An appraiser cannot rely on only 1 recent comparable to justify what another home is worth. IE; Are there two other recent sales that are similar in price and sqft to the home that sold at 140k?
Posted on: 05th Sep, 2007 08:48 am
oh I haven't asked my neighbors about it. Ok let me find it out.
Posted on: 06th Sep, 2007 05:33 am
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