Miscellaneous Mortgage Refinancing Tips:  Getting the Best Appraisal

Your Appraiser and Home Mortgage Refinancing

An appraiser is supposed to look at the structures and land of your property and determine value based on its highest and best use (the use that brings the highest value), as well as quick sale value, market value, and other considerations that will affect a lender’s opinion of your financing.

Make Sure Your Home Looks Its Best

Even though this judgment has nothing to do with the appearance of your home, you should still have it in good condition for the appraisal. People respond the same way to dirt an clutter—“UGH!”—and your appraisal will probably reflect than, regardless of what the appraiser tells you. The form the appraiser uses has a space for the age of the home and the effective age as well. Do you think clutter and dirt won’t affect that? Think again. This form also asks for other information that could be vital to your property’s appearance—if you can get your hands on a copy of a Uniform Appraisal Report before the appraiser comes, and fix your house up accordingly, do it.

Do Not Press the Appraiser

The other trick to getting a fair appraisal is not to press an appraiser into meeting a certain value. While some appraisers, lenders, and realtors engage in this dishonest practice, it will only make things worse in the long run for you. Remember that if you are able to do it, so are others; the prices of homes in the area will inflate. Like a balloon, it will inflate too much someday and pop. Whether you have purchased or refinanced under this condition, it doesn’t matter. You will be left with more mortgage than house value.

Mortgage Home Refinancing and Appropriate Appraisals

So if you think your appraisal is too high, it’s in your best interest to get it fixed and possibly notify someone. Remember an appraiser must be certified and licensed, and the standards are set by the Uniform Standard of Professional Appraisal Practice and authorized by Congress (see www.appraisalfoundation.org). Those lenders who are trying to refinance homes for $250,000 that are only worth $200,000 should be considered dishonest, but this practice will come home to roost on the homeowners’ bank accounts and not the lenders’ or brokers’. So it’s important that your appraisal is reasonable and fair.

Make Sure the Appraiser is Licensed and Certified

Always make sure your appraiser is certified and licensed in your state, and check for membership in professional foundations and is up to date on continuing education requirements. Also check with the Better Business Bureau and your local Chamber of Commerce for nay complaints or problems.