Just found out what my house was appraised at....im not happy

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prophecy033
9/28/12 3:24:30PM
Ok, ill lay it all out to make it easier to understand.

When my dad passed away he left my sister and I each a house and $42,000. Well, we had to distribute it evenly so we had the houses appraised back in November 2011. Her house is in a shitty part of Portland but it was appraised at $180,000. I chose the house in the nice neighborhood in Milwaukie. Smaller house (810 sq feet, 1090 sq feet with garage and carport) that was appraised at $140,000. It was a rental for about 10 years so it was in bad shape. The tenants moved out cuz I was moving in but first I needed to fix it up in a bad way. I ended up going all out. New carpet, bamboo hardwood in the kitchen and pantry, new countertop and cupboards, new tile in the bathroom, new sink and medicine cabinet, refinished the bathtub, new molding throughout the house, all new appliances, new couch, new bed.....everything is new.

So after all that I needed to put the house in my name. My dads interest rate was 5.45 and I could get it for just over 3. That is a few thousand over the next 30 years. Naturally I wanna save. So at the moment I'm in the middle of the final stage of the switch. I got the house appraised on Wednesday and got an email today from the company who did it.

$130,000

What?

$10,000 less than before? Less than a year ago it was $140,000 and in sad shape. This time it was $130,000 and the house looks WAY better and everything is new.

I understand that the houses around me affect my homes value and all that stuff but really, $10,000 less in less than a year. It doesn't help that the house right next door is on short sale for $110,000. It's a bigger house too but dude is in deep and just wants to sell. Next time I see him I'm gonna tell him he's screwing the whole neighborhood.

I just needed to vent guys, sorry
george112
9/28/12 3:31:52PM
It'll pick back up.


Real Estate is like that. Down a year or two. But then some years value sky rocket.


Appearance and condition is everything. Manicured lawn . Nice paint job. Sounds like you did a lot.


OG Prop man
Shawn91111
9/28/12 3:32:05PM
I own a house, but really know nothing about real estate and such. My wife and I put a lot of work, and like you the house was left to us by her family member etc. But over the years we put a lot of work into it.

So isnt the things you do for the upkeep and such supposed to make the price value go up?
george112
9/28/12 3:38:19PM

Posted by Shawn91111

I own a house, but really know nothing about real estate and such. My wife and I put a lot of work, and like you the house was left to us by her family member etc. But over the years we put a lot of work into it.

So isnt the things you do for the upkeep and such supposed to make the price value go up?




Yeah it is. But like proph said his neighbor is hurting his value. Things like that happen and it can be very frustrating.

Planting trees is a way to bring up the value of your property. Of course that might involve getting permission from either the city or home owners association
Chael_Sonnen
9/28/12 3:42:57PM
Want me to come over and take a look at it and give you my professional assessment?
prophecy033
9/28/12 3:49:56PM

Posted by george112


Posted by Shawn91111

I own a house, but really know nothing about real estate and such. My wife and I put a lot of work, and like you the house was left to us by her family member etc. But over the years we put a lot of work into it.

So isnt the things you do for the upkeep and such supposed to make the price value go up?




Yeah it is. But like proph said his neighbor is hurting his value. Things like that happen and it can be very frustrating.

Planting trees is a way to bring up the value of your property. Of course that might involve getting permission from either the city or home owners association

@Shawn, that's what I thought. I figured it would increase a bit, maybe to $150,000

@George, I've planted grass seed and shrubs in the front below the windows and keep everything nice and clean. But when they did the first appraisal the guy next door didn't have his house up for sale

@Chael, sure we can crack a few Brees and watch the best of Jones biggest WTF comments
kingsmasher
9/28/12 3:59:59PM
Thats what sucks about real estate you can want to put money into your house but if the surrounding houses sell for less than what you paid getting your money back and putting money into it is a bad investment...but over the years real estate is the most sound investment and the economy will definitely be on the rise...

I am going through the same thing....but I bought mine....Sorry ass neighbors who moved in in two places across the street and are dirty...Lived there a year....Drove me crazy but finally both have moved out and cross my fingers...

Your up grades in the kitchen and master bath are the best things you could do...you will be alright...
TeamDEY
9/28/12 4:01:01PM
In this economy its going down. Our house (my parents) was appraised one day at 320,000 now its about 230,000 - 250,000
postman
9/28/12 4:14:03PM
Chael Knows all about Real Estate!
Chael_Sonnen
9/28/12 4:21:41PM

Posted by kingsmasher

Thats what sucks about real estate you can want to put money into your house but if the surrounding houses sell for less than what you paid getting your money back and putting money into it is a bad investment...but over the years real estate is the most sound investment and the economy will definitely be on the rise...

I am going through the same thing....but I bought mine....Sorry ass neighbors who moved in in two places across the street and are dirty...Lived there a year....Drove me crazy but finally both have moved out and cross my fingers...

Your up grades in the kitchen and master bath are the best things you could do...you will be alright...



It's ALL GOOD in da HOOD
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pmoney
9/28/12 5:00:24PM
Sorry to hear that man. You could potentially get a second appraisal. I know some people or companies will appraise for more or less depending on different factors.

Did the same people that did your most recent appraisal do your previous one?
prophecy033
9/28/12 5:07:21PM

Posted by pmoney

Sorry to hear that man. You could potentially get a second appraisal. I know some people or companies will appraise for more or less depending on different factors.

Did the same people that did your most recent appraisal do your previous one?

no, two different companies. I might do that but idk yet
pmoney
9/28/12 5:19:57PM

Posted by prophecy033


Posted by pmoney

Sorry to hear that man. You could potentially get a second appraisal. I know some people or companies will appraise for more or less depending on different factors.

Did the same people that did your most recent appraisal do your previous one?

no, two different companies. I might do that but idk yet



That could certainly be a factor. If you call the same company that appraised your house less than a year ago at $140k, I wouldn't doubt that all those improvements would get you at that $150k (maybe even $160k) level. Judging by the sound of it you went all out, your home value certainly shouldn't have decreased. The market hasn't changed that much in the last 12 months. Not by my non-expert estimation.

Definitely hit the first appraisers up dude. It may be a little more out of pocket up front, but if you're looking to sell or just leverage the equity in your house, you'd want that extra value. Maybe you can call them, explain the situation and they can give you some info. Let them know when they appraised it, the condition the house was in, the improvements you made, and the second, decreased appraisal price you got afterwards. Hopefully they'll be like "that makes no sense" and they can get you a good estimate
Bubbles
9/28/12 5:23:23PM
what is the basement and backyard like? From what little I understand those can increase the value of the house
prophecy033
9/28/12 5:27:55PM

Posted by Bubbles

what is the basement and backyard like? From what little I understand those can increase the value of the house

no basement and the back yard is bigger than my house and enclosed. Well kept also
tcunningham
9/28/12 6:39:14PM
i own 2 houses that i use as rentals. one thing i have learned is that sometimes a low appraisal is a good thing. if you are just living in it or renting it out, 10k less on the appraisal is no big deal, plus, you pay less property taxes. the housing market is shit right now so the good thing is you can get that low interest rate. i know it sounds weird that the house is worth less after all the work you've doe, but without the work it might have taken a 30 or 40k loss. when the market comes back those improvements will really pay off. stick to it, you are already ahead of a shit load of other people.
kopower
9/28/12 7:07:14PM
Tell me about it dude. Bought mine for 140,000, and it was just appraised for $70,000. It's a small townhome, and it's getting tight with our son, and probably another one on the way in the next year. We are in the process of short selling right now. No other way around it for us.
kopower
9/28/12 11:58:26PM
So did you get approved for the refinance proph? There are programs out so you still can, even if your house appraised for less than what's owed. We were in the process of refinancing even with being roughly $50,000 underwater. The reason we didn't continue, was we would have lost roughly $200 renting our place out a month. I bought my place when I was single, and it was fine. Then met my wife, and it was a little tight, but manageable. Then had a kid, and things got cramped real quick. We tried everything in our power to do the right thing, but there's no way I'm throwing my money away, trying to break even, when we can afford a bigger and better place. It sucks, but I'm happy with our decision we made.
Kpro
9/29/12 3:33:21AM
Yeah, not that big of a deal unless it changes your LTV ratio and affects your interest rate or adds PMI. The closest comps were probably short sales and/or foreclosure auctions possibly also. The changes you made will be worth it when you sell it but for the lender, they just are looking at the closest recent sale in the area close to your house in the basics like square footage, bedrooms, bathrooms.

I was a mortgage broker for quite a few years, gone are the days of sending an appraiser a bottle of Jack for an extra $30k and pay stub generators.
Adrenaline
9/29/12 6:47:30AM
Don't feel bad Prophecy, I live in a van down by the river. And that van depreciated 40% when I drove it off the lot.
prophecy033
9/29/12 10:21:48AM

Posted by kopower

So did you get approved for the refinance proph? There are programs out so you still can, even if your house appraised for less than what's owed. We were in the process of refinancing even with being roughly $50,000 underwater. The reason we didn't continue, was we would have lost roughly $200 renting our place out a month. I bought my place when I was single, and it was fine. Then met my wife, and it was a little tight, but manageable. Then had a kid, and things got cramped real quick. We tried everything in our power to do the right thing, but there's no way I'm throwing my money away, trying to break even, when we can afford a bigger and better place. It sucks, but I'm happy with our decision we made.

yeah, I got approved. I have a pretty good credit score (771, 774, 780) and I only owe $71,000 out of $130,000 so they would almost have to be stupid to not loan me the money. The mortgage payment is only $522.35/month. My last apartment was $825/month.
kopower
9/29/12 10:58:14AM

yeah, I got approved. I have a pretty good credit score (771, 774, 780) and I only owe $71,000 out of $130,000 so they would almost have to be stupid to not loan me the money. The mortgage payment is only $522.35/month. My last apartment was $825/month.


That's great! Sounds like you'll be able to save quite a bit of money.
prophecy033
9/29/12 1:25:44PM

Posted by kopower


yeah, I got approved. I have a pretty good credit score (771, 774, 780) and I only owe $71,000 out of $130,000 so they would almost have to be stupid to not loan me the money. The mortgage payment is only $522.35/month. My last apartment was $825/month.


That's great! Sounds like you'll be able to save quite a bit of money.

maybe a little. I got a new truck that takes up the remaining $300. I had to, I had never had anything newer than a 98 Tacoma. I got a White 2007 Nissan Frontier 4x4. It only has 49,000 miles on it. Shit, to me that's brand new
prozacnation1978
10/1/12 10:00:13AM
Nice of your dad to leave you a home.

I wish I lived in a house instead of a apartment

My dad passes away. I will get some money
And about 20 illegal guns.
He lives on a indian reservation. So he has a lot of semi automatic weapons and rifles. Hand guns.

I told him if a war starts I am running up to the reservation

I own a couple guns. Love to shoot at the range. But open field shooting at beat up cars and stuff is way better on the reservation