frustrated seller from recent appraisal

**tech5621** · 01-25-2010, 10:59 PM

I have my home for sale and got a recent appraisal to adjust my original asking price due to some remodeling. I derived my original asking price from doing comparables of my own from local sales close to my home specs (~2100 sq ft, 3 bed/2 bath) in my downtown area. I also factored in my county tax assessment because it also included a couple of the same comparables I had already used.

My listing price $449k, appraisal $358k! How can there be such a tremendous variance here? I realize that county tax assessments can inflate the cost to generate more taxes but by nearly $100k seems a bit outlandish.

What are some "red flags" I should look at on the appraisal? The home now has a 4th bedroom addition in the basement. On the appraisal it states the home as "2 bedroom + 2 bonus rooms in basement". Is this an issue? The 2 bedrooms in the basement do have proper closets/doors etc and should be considered official bedrooms. What else can I look at?

We are located in a premier location downtown, walking distance to many parks/bars/restaurants people love to go to. The area could be considered one of the highest in demand for downtown. We have many things other homes in the area don't have (6k+ sq ft lot, avg is 4k, oversized 2 car garage with access directly in the backyard), does this even matter for appraisal?

This is extremely frustrating because it totally changes the situation if in fact we have to re-list at the appraised value. I just want to know that I am not getting ripped off.

Thanks,

Frustrated Seller

**Glennet** · 01-26-2010, 07:25 AM

Hello-

Unless I misunderstood your meaning - it sounds as though you ordered your own appraisal to confirm your listing price.

Question - Why aren't you asking your appraiser these questions ??

Glenn

**BoiseRealEstateSoup** · 01-26-2010, 08:06 AM

Originally Posted by Glennet

Hello-

Unless I misunderstood your meaning - it sounds as though you ordered your own appraisal to confirm your listing price.

Question - Why aren't you asking your appraiser these questions ??

Glenn

Exactly!

I'd be giving your appraiser a call and having this discussion with them. I'm sure they'd be happy to help.

**TexasLeaseHouses** · 01-31-2010, 01:40 AM

Appraisals are done by taking the last 6 months worth of activity, so if you have any sort of foreclosure activity, that will significantly drive down the value of your home. The other factor is that it sounds like you have one of the nicest homes in the neighborhood. Unfortunately, the nicest homes are hardest to appraise.

But as mentioned in earlier posts, the appraiser will give you their reasons/parameters.

**Greg** · 01-31-2010, 04:13 AM

Most likely the basement bedrooms do not count, in some areas bedrooms have to have an egress to the outside, ie full sized window to jump out of in case of fire. If you did not get permits they might actually take value away.

The couple of things you mentioned do not add $100,000 value to your house. Look at the comps the appraiser used and look at your comps. He is a professional and you are not. Try selling your house at your inflated price and see if it works. I am thinking it won't and you will end up having to lower your price to get a buyer interested.