Friday, September 28, 2012

You Have A Very Unique House.....

Here's something that I've learned you don't want your refi appraiser to keep telling you....

You Have A Very Unique House.....
He kept telling me that over, and over, and over....

Turns out when trying to get a decent appraisal having a unique house is a very, very, very bad thing....
As everybody knows our house is located in the Gold Coast. The Gold Coast, having always been an affluent neighborhood has a dearth of multi-unit buildings. I mean, probably like six in the entire 'hood.
Since only one duplex has sold recently there are essentially no comps in our neighborhood for our house.
No Comps In The Gold Coast
Plenty of single family houses have sold recently around the same total size as our house and they've all sold for over a million!
We're thinking, 'Great, we've got comps now we should have a great appraisal.'
Cept, 'it doesn't work that way.' is what the freaking appraiser told me.
Apparently they are not allowed to use the single family house recent sales?!?!?!?!
I asked him, 'Huh? Isn't there some sort of transfer function that you could use to apply these recent sales to arrive at a reasonable value for our house?'
'Nope, not allowed too.'
'Huh?!?!?' How does that make sense?

So, a house with the same size lot and same square footage in the same 'hood in the same condition can't be used because its not a multi-unit and there is no way to go between the two...does that not fly in the face of logic?

 
No Increase In Value For The Gold Coast!?!?!
The appraiser had to go outside our hood to find 2-4unit buildings that have sold recently.
Now, I'm not bagging on other neighborhoods but...it turns out that the less affluent the 'hood the more multi-unit buildings. Either because people converted to help make ends meet, or nobody cared if the old Vic's were razed and turned into apartment buildings...whatever...

The point is, the 'hoods he found comps in were not exactly comparable in anybodies mind. I'm talking far West End near the housing projects....
Then we had another interesting conversation that went like...'I understand that you have to go outside my 'hood for comps but you must understand that there has to be an up charge in value when going from a less affluent 'hood to ours.'

I mean, that makes sense right? The exact same house next to the projects is going to sell for a lot less than that same house across the street from Franklin park right?

The appraisers response was basically, 'Nope, I'm not seeing it. No increase in value.'
I immediately called a couple of Real Estate agents and their response was, 'Is he nuts!' In a scenario like that they both agreed that 20% would be the min increase in sales price...

Here's What $800 Worth Of Appraising Looks Like.
Got the appraisers report in the mail and this is what it looks like. 70 zillion pages of cr@p.

But,
But,

 
The Refi Went Through!!!!!
Woo!!!!! Friggen Hoooo!!!!!!!

Since it took so long the rates dropped and it looks like were going to be saving just slightly over $500 a month...that's $6k a year....that's probably about what its going to cost in materials to finish the basement apartment.....it couldn't of come at a better time for us, as we don't have anymore pots-o-gold to dip into to get this place finished......while trying to save up for the new roof and exterior paint job....

I know I'm not the brightest bulb in the tool shed or the sharpest tool on the tree but can somebody please explain the preceding to me?

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