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Answers (15)
- Dede Cunningham, "Dede Cunningham"
- Contributions:73
A home is the most important investment you can make. Do you really want to chance this to a "drive by" appraisal. There are certain areas where you may wish to save some money on the costs of your home purchase - this is NOT one of them. Get a full appraisal and you will be glad you did.
- Appraisal guy
- Contributions:120
If your home is average and typical for the market, it will not make much of a difference. If you are placing 50% or more money down, the reason why the banks completes a driveby is because you are taking more of the risk. I've seen cases when the bank orders a drive by. The cost of of the home is let's say $200,000. The market value is $150,000. But since you put down $100,000, the bank will lown you the money. The bank wins and you lose. This is why you should hire your own appraiser for $400 or less.
- Gary May, "RealtorTampaBay"
- Contributions:56
I would sleep better each night knowing that had a standard traditional appraisal. I would suggest a full complete professional appraisals do not take short cuts.
- Cindy Quinton, "Cindy Quinton"
- Contributions:1323
Sharon, could you please explain why your answer changed so dramatically in a few days? Has something changed in lending standards or was it a market change?
- Sharon Lewis, "Sharon Lewis"
- Contributions:3923
Lots of responses here, again,a drive by appraisal is not the way to go for you. Cary/Raleigh have a more balanced market than many places in the U.S It, along with Raleigh are among the top places for recovery in the U.S
- Cheryl Talbot Real Estate, "Virginia Beach Homes"
- Contributions:674
When a lender allows a drive by appraisal, they do it because the value is there. Meaning, based on what you may be putting down or what you paid for the home they can see the value is greater. Believe me in this very difficult market, if there were any concerns over value, they most certainly would have had an appraiser go in. I had a buyer who was putting down over 150k on a home and the bank required a drive by appraisal only. Also, the market analysis proved the value. An appraisal is an appraiser opinion of value based on what the market supports of a home in a certain area. They look at the comps and determinne values by using factors. If you are still concerns, talk with your lender. They will explain how this may benefit you. Thanks
- Russell Smith, "RussellMortgage"
- Contributions:110
A full appraisal is a good idea if you have any reason to think the value may not reach the price. If you know the value is easily more than the price based on actual research done by you and/or your realtor, then the lower cost appraisal would be something to consider. Do make sure you get a home inspection at least by a licensed home inspector! This is money well spent.
- Appraisal guy
- Contributions:120
The bank will complete a driveby to protect their interest. You should order an appraisal to protect yours. At least order a desktop appraisal or better yet, just hire an appraiser before you buy the home. I've seen cases like this when the buyer lost $50,000 just like that because the bank doesn't care as much because YOU are taking the risk. So for example, if the list price is $100,000 and you are putting $50,000 down if the appraisal comes in at $60,000, the bank will give you the money. But wait, you just lost $40,000. This is why it may be better to put less down or get your own appraisal.
- Natalie Arndt, "Natalie Arndt"
- Contributions:13
It depends on the home and the comperables that they are using. Does this home have a lot of upgrades or is it damaged ugly duckling inside even being 2 years old? Being a buyer I assume you do not want this home to appraise very high. If it is all upgraded inside with fabulous view in the back your home can appraise more with appraiser going inside of the home. If it is damaged, or plain dirty with ugly backyard, no upgrades sure let them go in since that can affect value.
Natalie Arndt BS,MA, CDPE, CDRS
Natalie Arndt BS,MA, CDPE, CDRS
- Sharon Lewis, "Sharon Lewis"
- Contributions:3923
Did you Realtor do a comprehensive comparative market analysis, not a quick cma? What do those figures look like.
I agree with Vince, enjoy your new home!
I agree with Vince, enjoy your new home!
- Wes Black
- Contributions:509
Drive by appraisals are seldom a good thing. Be cautious and spend the money for a real appraisal.
- David Barr, "dpbarr2000"
- Contributions:280
Even if it's 2 years old you never know what can happen to a home unless you have it fully inspected. Why roll the dice for a few dollars difference for such a large investment?
- Devin Haub, "Devin Haub Remax"
- Contributions:29
I will never go with a drive by appraisal again. I bought a fixer upper home for 70,000. The appraisal came in at 80,000 when I bought in poor condition. I mean drywall missing, flooring missing, and wires hanging from the ceiling. I fixed it up And I'm a real estate agent and conservitvely I thought the value would be at least 100k after I worked on it. I ordered an appraisal and wasn't aware they were only planning on a drive by appraisal. The appraiser must have looked on the mls just to see what I bought it for because he appraised it for 70,000 which is 10,000 less than the appraisal on 3 months previous a a piece of junk. This was in 2011 so it wasn't like the market dropped that fast. Get a normal appraisal and make sure they see the inside.
- James and Kenisha Martin, "JK Homes"
- Contributions:11
A drive by appraiser rely on outside sources for their information such as court records,multiple listing service record to obtain the age, size,and other characteristics of your home. Although these records may not always be accurate, they provide some basic information to complete the appraisal.
Now with a full appraisal (1004) the valuation is based on an interior and exterior inspection of subject property and exterior inspection of all comparable sales by a licensed appraiser. You will also be provided with a building sketch with exterior dimensions, front rear and street photos of property, and front picture of all comparables.
Now with a full appraisal (1004) the valuation is based on an interior and exterior inspection of subject property and exterior inspection of all comparable sales by a licensed appraiser. You will also be provided with a building sketch with exterior dimensions, front rear and street photos of property, and front picture of all comparables.
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
No (in your case). Save the money and go out to dinner. As long as you are happy with the price, run with it.
In some cases, a drive by with NO comparables may be used simply to make certain the property exists, ie is not burned down. Other drive by appraisals contain a value. Depends on the lender, and if they are lending their own money (ie credit union).
Enjoy your new home!
In some cases, a drive by with NO comparables may be used simply to make certain the property exists, ie is not burned down. Other drive by appraisals contain a value. Depends on the lender, and if they are lending their own money (ie credit union).
Enjoy your new home!
Should I get a drive by appraisal
I am purchasing a home that is two years old. The home got approved for a drive by appraisal, which costs a fourth of a regular appraisal. I guess this happened because the LTV was low.
I was wondering if there are any advantages of the regular appraisal over the drive by appraisal for the buyer?
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