Home appraisal values

Home appraisal values ​​have seen a decline from the values ​​of a couple of years ago. Many lenders have moved to national appraisal companies in an effort to bring consistency to home appraisal values. Here are some helpful tips regarding residential appraisals and things to consider.

Evaluation tips:
It is important to remember that if the property is overbuilt for the area – unique in size, number of rooms, or other unique factors – simply tweaking it to make it work is not allowed. Similar compositions are the key to allowable settings. In addition to compositions being similar in aesthetics, they should be in reasonable proximity based on area.
Suburban and urban properties must have compositions within one mile or less of the subject property. Offsets coming from across a main road or from another city are difficult to validate.
Net/gross adjustments for compositions must not exceed 15%. In some cases, larger adjustments may work depending on the appraiser’s notes and reasoning. Line adjustments must not exceed 10% of the selling price. Again, appraisers may exceed 10% slightly with proper explanation.

KEY POINTS OF THE EVALUATION

Page 1 of the Appraisal

market decline
over offer
Time to market of more than 6 months
this is normally not acceptable.

*Appraised value of prevailing value for market area
· the appraiser should comment on the effect it would have on the subject.

*Interior and exterior materials must be in at least average condition; if they are in fair condition, the item contributing to the “fair” condition should be repaired and brought to average condition.

Page 2 of the Appraisal

1) Beat distance
Urban: must be ½ mile or less
Suburban: 1 mile or less (can be a little more depending on the area)
Rural – less than 10 miles
2) Line item adjustments greater than 10%
3) Net/gross adjustments greater than 15/25%
Excessive adjustments show that you don’t really have a comparable property
4) General adjustments in the compositions
if all compositions have one setting, such as for a swimming pool, this is not acceptable.
must have a composition(s) that supports an item’s settings (ie pool, no garage, accessory unit/rooms, workshops, etc…)
5) Appraised value should be in parentheses per comps
if you have 3 bars with set values ​​that are far apart, this is not acceptable.
the value cannot be based on the bars in the list. List comps are to support the value.
the value cannot be above the set values ​​of the beats

All Appraisals must contain the following:

*1004MC or DU/LP rate type (automated underwriting engines) allows reduced rate rates. However, they are not allowed on: Cashout, New Construction, Loans that require mortgage insurance.

1) The annex page must show the Remaining Economic Life.
2) The Assessor’s signature must be present.
3) The sketch page must be present.
4) The location map is key for the subscriber to determine the neighborhood.
5) Photos (front, back, street view, interior photos, courtesy photos)
6) flood map

Home loan values ​​depend on neighborhood factors as well as the appraiser’s ability to find comparables within a reasonable distance that have sold within a reasonable period of time. The days of insurers simply allowing higher home loan values ​​on a particular property because the property is at home loan value can be a source of much frustration for a prospective homebuyer. However, a proper technical evaluation can simplify the process. For more information on home loan values, appraisal key points, or residential financing, visit the caltexfunding resource site and search for the Brandi Horton resource.