Property Valuation 2

[Todd Chadwick]

Hey gang ~ I'm still looking for good, solid ways to establish a value on a property without spending $300-$400 on an appraisal (which I've found to be as wildly inaccurate as Zillow's zestimates or eppraisal or any of the other online valuation sites!!).

For example ~ and this has happened many times to me ~ I look at a property here in western NY state, the assessed value is $50,000, I've arranged for an appraisal for $350, and the appraisal comes in at $35,000!! Once, I actually spent the money to have several appraisers appraise the same property and they came up with 3 different valuations, ranging between $25,000 to $60,000!! The low-end appraiser used several rehab foreclosures in the area as comps for his appraisal!! (And yes, I spent over $1,000 on appraisals on that one property!!!) It's EXASPERATING!!!

Another example ~ I was working on putting a deal together with a family whose payments had become too much for them, and they had refinanced their property at $120,000, and showed me the appraisal that established the value at $120,000 for the bank who did the refi. In finalizing the deal, I contacted an appraiser I know just to double-check on the value, and he said, "Oh, we just did a property in that neighborhood. I'd say with confidence that the property you're looking at would be worth $60,000-$70,000." I was flabbergasted!! Here they had an appraisal at $120,000, and another appraiser said it was worth HALF that!!

So appraisals, I've discovered, are about as valid as Zestimates. It all depends on what comps the appraiser is using, and they can vary widely!!

SOOOOO... What's a good way to get good, solid property values without spending $300-$400 on an appraisal that could be as invalid as Zillow!!

What are you all using???

Thanks,

~Todd

[Watson Smith]

Banks are at their old games again... loaning to people who shouldn't be buying houses, underwriting amounts that are outrageous and packaging and selling of off mortgages based on debt class.

When I appraise a house I toss out the outliers (the lowest and highest sold) I then use comps like anyone else would.  If a house sold in 3 days then it was underpriced.. If it took 180 days to sell then it was over priced.  If the house was gutted and rehabbed I take that into account vs if it wasn't.

I know you have to have "hard value" to show your lenders.. but if I was a lender I would rather have numbers and explanations from the guy doing the investing than a piece of paper that you paid $400 from a guy who took an internet class to appraise a property.