Currently Boatworks townhouses 1800 – 2000 sq. ft. are appraising in the range $320,000 – $410,000. There are many reasons for this gap in values. Whether you are listing your house for sale, refinancing or looking to buy a home in Boatworks Bayonne, choosing the right comparables is important in determining value. Understanding property values and the appraisal process are key to determining your true market value.
At the very least appraisers must use 3 sales closed within the past 12 months as comparables. Appraisers can make exceptions and use older sales if more recent comps are limited.
Fannie Mae does not insist on using comps in a one mile radius. It is sometimes possible to find comps in Boatworks, or several blocks away at another location in Bayonne. Other times it means traveling to places such as Society Hill, RT 440 Jersey City to find a townhouse that has similar attributes.
When appraisers or real estate agents use the wrong sales for comparison it is easy to have an “incorrect” value or price.
Fortunately for sellers and buyers, a low appraisal is not the end of a refinance or home sale. The best way to improve your appraisal value is to challenge it. Contact the lender and request a value appeal. Ask your agent to meet with the appraiser and provide updated and more accurate comps. Point out upgrades and improvements that add value. Every neighborhood and community has its own unique attributes, Boatworks is no exception. The appraiser should be familiar with these attributes and not rely on “cold” data. If the appraiser is not familiar with the area then he or she might not be the person to give an accurate assessment on value.
If you are selling, don’t wait until the loan is declined to fight the process. Show up for the appraisal, or make sure your agent does, with comps and a list of upgrades to the property. At appraisals for the properties I list, I walk with all listings sold in the community in the last year, and a note attached to each pointing out differences in those and the subject property. I develop rapport with the appraiser without being intrusive or crossing the line. I don’t leave the appraisal to chance.
After a low appraisal the lender will most likely decline the loan. While it is tough to convince lenders to change their minds, it is not unheard of. If you must, try another lender and get a second opinion. Most likely the second appraisal will stay within 5 to 10% of the first. That difference just might be what you need to get the loan approved.
If you need help in determining value for your Boatworks townhouse call Janice Hall at 201 232 8577.
