Home Loan Borrower Duped By Online Valuation Tool in Baton Rouge!
$326,000...Misled by another "Online Value" lookup!
Saturday morning I'm visiting a property for a Reverse Mortgage loan, 1 non-resticted acre (not in subdivision), 20 year old 1700sf built of average quality, low quality flooring, no frills, average condition. I begin to talk to homeowner and they say, Yeah, the banker typed on their computer and said our home is worth $326,000.
This home might be worth $225K to $245K. The problem is this home is surrounded by newer homes, mostly in newer subdivisions, of higher values. These online valuation tools can't distinguish differences like this and pull an average or median sales price of sales in say a 1 mile circular radius.
So, this homeowner spends $ on loan application, credit report and appraisal to find out their home is worth over $100,000 less than that online valuation tool stated!
Another homeowner deceived!