Many times homeowners think that the value that they get back from a refinance appraisal is their home’s true value. Most times, this just isn’t the case.
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The market is booming here in Michigan, and today I’m joining you from one of the many listing appointments that I’ve been on lately. I’ve noticed that many people at these listings are actually showing me values that they’ve gotten from refinance appraisals, so I just wanted to break down the ways in which refinance appraisals differ today.
In a refinance appraisal, the bottom line is that the bank wants to lend you money no matter what. Because of this, the refinance appraisal is probably going to come in a little bit higher than a traditional appraisal would.
This is important to know because some home sellers see the amount that their house appraised for on the refinance appraisal and expect that it represents the true value of their home. Sometimes this just isn’t true.
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It’s important to understand that a refinance appraisal isn’t the same as a sale appraisal and that the type of appraisal you get on your property largely depends on the type of loan that’s going to finance the sale of the property. The refinance appraisal will usually be higher than the other types of appraisals because it is in the bank’s best interest to loan you money and make sure that the property appraises at a high price.
A refinance appraisal isn’t the same as a sale appraisal.
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If you have any other questions about appraisals or obtaining a loan, don’t hesitate to give us a call or send us an email. We look forward to hearing from you!
