I should be an appraiser

[Monkeyleg]

For the last month or so, I've been going through a home equity loan. I've had to wait for the last week for an appraisal.

With housing prices all over the place lately, I wanted to make sure that I had my place looking as good as possible. There was a very large flower bed along the back of the house that had turned to weeds. I cut down all the weeds, put down a weed barrier, and put down three yards of red rock. I power washed, sanded, primed and painted the gazebo in my back yard. I got two new chairs and a small table for the gazebo, to replace the rotted wicker stuff my ex had left.

I had the carpeting shampooed. I cleaned the garage, which was the first time in my life I've cleaned a garage. I replaced a really leaky shower faucet. I replaced a couple of strips of roof shingles that had blown off in a recent storm (and I'm afraid of heights). I put down polish on the floors. I mowed and trimmed the lawn. I got a new comforter and sheet set to replace the rags that I'm comfortable sleeping with.

I cleaned and cleaned and cleaned. By the time I was done, the house was sparkling. Altogether, I'd spent about $1100 on materials and new stuff.

I already had paid $525 to the mortgage company for the appraiser. She arrived, measured the yard, measured the outside of the house, took a photo of each room and the outside of the house, and that was it. She didn't examine anything. I don't think she was at the house for 20 minutes.

I'm sure that the mortgage company marks up the appraisal, but that's still a good sized chunk of change for very little time.

I'm in the wrong business.

[Brad Johnson]

For most HELOCs the appraiser is doing what's commonly called a "drive-by". They are there to A) make sure there is a house at the address listed, B) verify general size and layout, C) make sure someone lives there and D) make sure it is habitable and appears in good repair.

Appraiser can make good money. Very good money. Just be aware they are not all that fast or easy (on-site) and the write ups usually take several times longer than the actual visit.

Brad

[Monkeyleg]

For most HELOCs the appraiser is doing what's commonly called a "drive-by". They are there to A) make sure there is a house at the address listed, B) verify general size and layout, C) make sure someone lives there and D) make sure it is habitable and appears in good repair.

Appraiser can make good money. Very good money. Just be aware they are not all that fast or easy (on-site) and the write ups usually take several times longer than the actual visit.

Brad

I pretty much assumed that, Brad. The cost of appraisals has gone from $375 to $525, though. I don't know how she could establish condition.

My preparation for this reminded me of the episode of "M.A.S.H", when General MacArther was supposed to visit. They spent a week spiffing up the camp, only to have MacArthur just drive though the camp and salute as he passed by.

[AJ Dual]

There is "work", or perhaps more appropriately "value" you, the real estate agents, the banks, or whoever is responsible is paying for with the appraisal.

It's mainly on the paperwork and legal liability/responsibility end. A ton of legal documents, and taking on assumed risks, in the event something goes all FUBAR/sideways so various parties are properly CYA'd.

The industry just values the blanket protections and assurances far more than some subjective "Is it a nice house that would sell well?" kind of assessment.  Since in most cases, the lending institution having to foreclose and sell the property is the worst-case scenario for them anyway, whether it's a good/nice house or not. And no matter how nice the house is when the loan is given, if it goes to foreclosure, it's all too common for the resident to trash the house in retaliation anyway.

[Monkeyleg]

I understand, AJ. There's also a lot of responsibility and liability on a cop's job, but he doesn't get $525 a call.

[Kingcreek]

You're right, it's a racket. They are still averaging about $400 here, they were typically about $250-300 a couple years ago.
It still doesn't hurt that you spruced the place the place up because the pics will be included with the appraisal.

[Hawkmoon]

Much of the work associated with an appraisal is researching the "comps." They can't value your house by itself. They get an idea of the neighborhood, the age, the size, and overall condition. Then they go to city hall and pull up records of recent sales in similar neighborhoods of similar houses. That's what sets the appraised value.

[wmenorr67]

No the biggest racket is with the state of Kansas and out of state titles.  Bring a car in from out of state you have to pay $20 to the KHP to do a VIN verification, that takes all of 10 min at most.

[Brad Johnson]

Much of the work associated with an appraisal is researching the "comps." They can't value your house by itself. They get an idea of the neighborhood, the age, the size, and overall condition. Then they go to city hall and pull up records of recent sales in similar neighborhoods of similar houses. That's what sets the appraised value.

This. There's also the write up. Depending on the requesting entity this can take from 30 minutes to several hours Figure an average of about two. Don't forget commuting time, either. t's not unusual to have 3-5 actual hours in an appraisal. More if it's an elaborate layout or a rural property. Plus transportation costs and vehicle wear. Plus supplies. Plus training. Plus licencing and cert costs.

Brad

[Scout26]

I cleaned and cleaned and cleaned. By the time I was done, the house was sparkling. Altogether, I'd spent about $1100 on materials and new stuff.

None of which made one iota of difference in the appraisal.   They are looking at sq footage (both inside and outside) and that it's not a bug infested, firetrap about to collapse in on itself.

They ignore your "stuff" because when you sell, the new owners are literally buying the box, not your stuff. (Not even the carpet or appliances, as those are often replaced by the new owners).   Decorating and cleanliness (above a minimal level) matter for nothing.

[Firethorn]

They ignore your "stuff" because when you sell, the new owners are literally buying the box, not your stuff. (Not even the carpet or appliances, as those are often replaced by the new owners).   Decorating and cleanliness (above a minimal level) matter for nothing.

That said, decorating and cleanliness can help sell the place, if you were planning to do that.

[Monkeyleg]

None of which made one iota of difference in the appraisal.   They are looking at sq footage (both inside and outside) and that it's not a bug infested, firetrap about to collapse in on itself.

They ignore your "stuff" because when you sell, the new owners are literally buying the box, not your stuff. (Not even the carpet or appliances, as those are often replaced by the new owners).   Decorating and cleanliness (above a minimal level) matter for nothing.

That's the way it's supposed to be, but I can't imagine that such things don't have at least a subliminal effect. If condition is part of the appraisal, then I would think that appearance would have more of a subliminal effect.

At any rate, just about every how-to article I read or video I watched done by pro's said to make sure the place is as clean as can be. The appraiser made a remark when she was leaving to the effect that she would mark the house as being in perfect condition.