A Lender’s Appraisal Does Not Care About Your Upgrades

By
Real Estate Agent with Shorewest Realtors

To find out what your home is worth in todays market, call Pat Tasker at Shorewest Realtors 262-437-5853.  Reading the blog below, you can see that quite possibly some of your upgrades will NOT bring back the dollars invested in the home....

Pat Tasker Realtor Milwaukee Metro Area WI (Shorewest Realtors): Real Estate Agent in Germantown, WI

Pat Tasker is your Milwaukee area Real Estate specialist.  Her knowledge of the Milwaukee area and surrounding communities allows her to thoroughly assist you in meeting all of your real estate needs and goals.

Contact Pat if you are considering buying or selling a home or would just like to have additional information about real estate in your area.  Visit Pat's website - please consider it as your online source for local real estate information, and return often for the latest property listing updates

 

Do you feel that pricing a home is a little like throwing darts these days? Sometimes you hit, most times you miss?

At the end of the day Realtors have a next to impossible job trying to help clients price their home. I don't think I ever met anyone that wants to lose money but most homes we price today should reflect a lower price than a few years ago. Now I'm on the mortgage side of things but I hear the same things. My house is worth XXX,XXX due to:

"I have nicer landscaping."

"I just replaced the carpets."

"I just repainted the walls."

"I just had the bathroom toilet fixed."

"I had my furnace replaced last year."

Realtors work very hard with comparables, pictures and stats to help support the price. I'm not saying that these upgrades are not important. They just don't really add value. They add eye and curb appeal to help a potential client say yes to the listing.

What goes into a Lender's Appraisal?

For Fannie Mae, Click here

For Freddie Mac, Click here

For FHA, Click here

Most homes are financed. So these appraisal standards are important when you price. Remember we are in a Lender's Market. Nothing will turn a buyer off more than working hard on a price agreement only to find out the appraisal comes in short. So to best serve our clients remember that most of the weight for your pricing strategy must be Lender comps.

 

At your service,
Tony Grego
Senior Mortgage Banker  American Bank - Indianapolis, IN Branch
www.getmyratequote.com
www.tonygrego.com to learn more about me

317-348-0280 direct line
317-536-3754 fax
"Bankers with vision, helping people with dreams!"

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Rainmaker
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Ed Newman
Alamo Infrared Energy Audits & Building Evaluations - Midvale, UT

Thanks for this great information, I will be sure to pass it on

Feb 27, 2010 12:55 PM #1
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Rainmaker
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Pat Tasker

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