I sold a Carmichael home for around $1M last year. Last week, my seller got a $665K appraisal for his refinance. Ouch! Did his home really drop that much in value?

No. No. No. In fact, homes over $700K in Carmichael have retained their value over the past two years. (look at the chart below) So what went wrong?What is my home worth

Appraisers have different goals with their appraisals. On a refi, they are trying to confirm to the bank that the loan is a good one.  They know what value they are trying to confirm. In this case, they only needed $665K of value to approve the refinance. So why go beyond?

With changes in our lending/appraising laws, appraisers are now PERSONALLY liable for errors they make. Review appraisers, sitting in a windowless office somewhere, a little cranky that they are not outside  playing today, will be checking the original appraisal.   And the appraiser gets spanked if they have over-valued a home.  They may not get hired again. Since this refinance worked at the lower value, why should the appraiser have stuck his neck out and take on extra liability, even risking a spanking, when there was no need?

If you want a Fair Market Evaluation of your home to find out the true value, let the appraiser know that's what you are looking for.  Or call a Realtor.  We're free. We do market evaluations, Comparative Market Analysis (CMAs), all the time. We not only look at the same comparable sales an appraiser looks at, but we also filter in our experience of what buyers are looking for, what your listed competition offers, and current trends in home buying. In my (ever so humble), Realtors are the best gauge of your homes current market value.

 

copyright © 2011 Sally Dunbar

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Your Fair Oaks Realtor for homes for sale in Fair Oaks and the Sacramento Area of California.... I'm your gal (Sally Dunbar). I'm occasionally knowledgable, periodically humorous, and always willing to tell you everything I know.  What more could you ask for?

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Sally's Website at www.sallydunbar.com to search for all homes in the MLS, and for tons of information for buyers and sellers. You'll find schools information, market statistics... you name it, I got it! Come visit me.More Blog posts by Sally Dunbar at www.FairOaksHomesAndMore.com

 

 

Sally Dunbar, 30 year Broker Associate, Lyon Real Estate, Fair Oaks, CA (916) 535-0356, SDunbar@GoLyon.com "Your Fair Oaks Realtor"

 
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2 Comments on Do refinance appraisals reflect the true market value of a home? Not necessarily.

APR
28
2011
965,776 Points 60 Featured Posts Outside Blog Called Shot Master

Sally, in all my years of real estate, I have never thought that refinance appraisals reflect the true market value of a home.  And someone doing a HELOC... a home equity line of credit on their home... I think it is even worse.
5:09pm • #1
186,516 Points 19 Featured Posts Outside Blog

Karen - You are right about the HELOCs. I don't know for sure, but it always seemed to me in the past that if the owner had good credit, the appraiser was much more lenient, and would appraise the house for MUCH MORE than the home was actually worth in our eyes.  I haven't heard much about that lately - no one has any equity to get HELOCs with!!!!
5:11pm • #2


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Sally Dunbar, Fair Oaks Realtor - Fair Oaks Homes for Sale

Fair Oaks, CA

More about me…

Lyon Real Estate, Fair Oaks CA (Sacramento Area)

Address: 8814 Madison Avenue, Fair Oaks, CA, 95628

Office Phone: (916) 535-0356

Cell Phone: (916) 524-1548

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Fair Oaks homes for sale by Realtor Sally Dunbar, who's been hoofin' it through the homes of Fair Oaks and the surrounding areas, matching up eager buyers with ready-to-move sellers, since 1979.

While I sell homes in Fair Oaks, I venture in Sacramento, Carmichael, Citrus Heights, Orangevale, Rancho Cordova, Gold River, Folsom, El Dorado Hills, Roseville, Rocklin and Granite Bay...(and Chevron loves me!)

How have I survived for so long?... By always doing what's right for my people.... Always!

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