Vote needed! Why 'o why does thou appraisal come inneth so low?
I need your wisdom and vote please.
So, a year ago I bought a little duplex in North Collinwood, Cleveland for $65k cash, slapped a new roof on it, upgraded the electrical with new panels and meters, fixed some knick knacks and the recent appraisal came back for only $66k. The upgraded electrical is just a footnote on their report and the incorrectly marked the roof condition as "average" instead of "new". The nearly exact same house next door sold for $72k. Another down the street went for $107k. Investors buy old houses and fix them up to add value - why isn't this being recognized on the appraisal?
I cannot continue with the cash-out refinance with this lender because the loan amount is now less than $50k based upon the appraised value. Which of the following should I do next?
1. Raise hell - already did that. The appraiser refused to amend their report.
2. Pay for a new appraisal - Ugg, more $$$.
3. Find another lender - <$50k loan with fewer lenders and less favorable terms.
4. Fix more to raise value - units still need updating and rents are below market. Only takes more $$$.
5. Sit on it like a mother hen and wait - continue to stabilize and try to cash-out refi again later.
6. Stop buying tiny properties with the hopes of pulling cashout in <1 year.
6. Start buying more tiny properties and get more creative with financing.
8. Plow money into the lotto - screw real estate.
Thanks guys and gals!
Most Popular Reply
Roof and electrical do not raise the value for a residential appraisal that is considered maintenance. 46 houses listed for sale from $19,900 to $160000
Listed:
13804 Argus $65000 1646 square feet 4800 lot
19301 Kilder $148000 4 bed 2 bath 1880 square feet 5001 lot
177720 DElaven $19900 858 square feet 5401 lot
median price $78000 down 6% from last year
1176 East 176 sold $75000 1112 square feet 5002 lot
What is room count/ bath count/ square feet? Comparable sales is what matters. Only way you can raise value is add square feet that makes sense in your market. Lots of cute old houses that need love is why people are buying them. Daughter works at Cleveland Med bought a storybook house that is wonderful. There are many lenders who do small loans (I do) but if you do not have similar size and proximity sold in last 3 months with a loan (not for cash) you will be wasting your money on a new appraisal. I suggest you get a realtor to help you find some comps call Christine Pappas see if she can assist agent there
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