Author Topic: Refinance appraisal questions...  (Read 1548 times)

The knitter

  • Stubble
  • **
  • Posts: 119
Refinance appraisal questions...
« on: November 09, 2015, 09:19:36 PM »
We own a two-family and we have done a lot of upgrades and small renovations over the last two years. The majority of these updates would not require a permit. But there are some items (ie adding recessed lights or heated electric floor) that might have needed a permit.

Should we point out these upgrades to an appraiser if we don't have a permit for them? Would an appraiser ask to see permits if he or she saw something that looked like new work?

We are just getting nervous. We want to have a good value to the home, but don't want any issues.

An appraiser is coming this week.

windypig

  • Stubble
  • **
  • Posts: 159
  • Age: 34
  • Location: Vermont, Boston, Cape Cod
  • You are what you hate.
Re: Refinance appraisal questions...
« Reply #1 on: November 09, 2015, 09:25:49 PM »
No dont mention that you didnt get permits if you in fact want to be refinanced. He likely 1) wont care much and 2) no good would come of it.

The knitter

  • Stubble
  • **
  • Posts: 119
Re: Refinance appraisal questions...
« Reply #2 on: November 09, 2015, 09:44:39 PM »
Do you think he will ask?

supersaverman

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Re: Refinance appraisal questions...
« Reply #3 on: November 10, 2015, 08:40:14 AM »
The appraiser will ask if any upgrades were done but you don't have to divulge anything if you aren't comfortable. In the end, from my own experience it really doesn't do anything to the value of the home. The most important factor will be the comps. We recently did a refi and mentioned we had the highest package upgrades (we bought new construction) soft water system, etc etc and none of it really mattered. We came in lower than expected and got a little higher rate because of it, 3.125% vs 3% on a 7/1 arm.

Louisville

  • Bristles
  • ***
  • Posts: 499
Re: Refinance appraisal questions...
« Reply #4 on: November 10, 2015, 09:09:31 AM »
Yeah, comps are the real basis of an appraisal. Upgrades don't matter a lot, unless you've added sq footage. That's been my experience, anyway.

bacchi

  • Magnum Stache
  • ******
  • Posts: 4064
Re: Refinance appraisal questions...
« Reply #5 on: November 10, 2015, 09:46:09 AM »
They usually ask, "Have you done anything to the house in the past 5 years?" Then you rattle off the roof or bath remodel or whatever. I think it does matter -- if you have a new roof and the recent sale down the street has a 10 year old roof, your house will get a small bump.

I've never had an appraiser ask for permits.

The knitter

  • Stubble
  • **
  • Posts: 119
Re: Refinance appraisal questions...
« Reply #6 on: November 10, 2015, 08:37:51 PM »
Thanks for the responses. Fingers crossed.