how to value your house equity?

[deadbroke99]

We built a house in December 2006. Would I use current tax appraisal or would I use the professional one that was done in Dec 2006? The tax one states value is $181,000 and I paid $189,000 for the house. The professional one ordered by the bank appraised the house at $195,000 in Dec 2006.

[optimistic1]

I dont think the tax value is the same as a market value, try using something like zillow.com and see identical homes in your area that are for sale. Thats what we are doing.

[StartingOver08]

I dont think the tax value is the same as a market value, try using something like zillow.com and see identical homes in your area that are for sale. Thats what we are doing.

No. Do not do this. A home that is "For Sale" does not determine the market value. The market value is comparable homes that have SOLD within the last 90 days that are like yours. You can call an agent and they will give you FREE CMA with recent home sales. You can specify that the sale must be within 90 days and comparable to yours.

[optimistic1]

Well thats what I meant, and any ones "for sale" would be based on the comps anyway, so the number would be relatively close, because most people couldnt get a loan for the house anyway, if the asking price isnt close to the comparable previous sales. When a realtor or a bank decides to sell the house, they look at comps to determine the "for sale" price anyway.

I just bought my home, when it is underwritten, they look at the comps, and if the asking price or loan amount is not close to the comps, then, you cant get the loan.

So, to defend myself, the for sale prices, are almost the same as comps.


Furthermore,

There is no need for you to waste your time on dealing with a realtor.
Zillow.com, when valuing your home, already takes "comps" into account. It can give you a breakdown of all previous sales and dates for your type of house.

Case in point

My house value on Zillow.com, $115,000
Comparable sale on 10.20.08, $115,000, a identical home two streets away from my house.

Good day

[deadbroke99]

Well thats what I meant, and any ones "for sale" would be based on the comps anyway, so the number would be relatively close, because most people couldnt get a loan for the house anyway, if the asking price isnt close to the comparable previous sales. When a realtor or a bank decides to sell the house, they look at comps to determine the "for sale" price anyway.

I just bought my home, when it is underwritten, they look at the comps, and if the asking price or loan amount is not close to the comps, then, you cant get the loan.

So, to defend myself, the for sale prices, are almost the same as comps.


Furthermore,

There is no need for you to waste your time on dealing with a realtor.
Zillow.com, when valuing your home, already takes "comps" into account. It can give you a breakdown of all previous sales and dates for your type of house.

Good day

I just tried Zillow and it doesn't have anything in my area. I live in a rural area.

[optimistic1]

Then it that case, try the realtor route, if that doesnt work, you might have to appraise it some other way, like actually paying for it. But I wouldnt do that unless you had no choice. The value is probably much less than the 2006 bank appraised value.

Did you try expanding your search on zillow?

What did it tell you the value was when you entered in your own address?

[jencz]

Another site to try is ~Cyberhomes.com
Similiar to Zillow but I think easy to use.

I know though that my attorney did want a CMA from a realtor ready when we filed. Just a FYI....

Good luck!

[justbroke]

If you are using this valuation for a lien strip or other court related matter, you need to have a professional appraisal performed by a licensed person.

You will need a current appraisal at or around the time you file for your Chapter 13. The closer the better.

Nothing else is a substitute and is pure speculation.

[optimistic1]

My ex-attorneys Financial Information packet states,

A Written Estimate of value from either an actual appraisal, a realtors statement of value, or a printout from an internet based home valuation website.

Go figure.

This attorney was part of one of the largest firms in Phoenix.

Seems as though what is required varies from district to district, as do alot of things.

And not to argue, but the question was how to value to equity in the house, not, what does the court require to determine value.

[justbroke]

My ex-attorneys Financial Information packet states,

A Written Estimate of value from either an actual appraisal, a realtors statement of value, or a printout from an internet based home valuation website.

Go figure.

This attorney was part of one of the largest firms in Phoenix.

Seems as though what is required varies from district to district, as do alot of things.

Not really. If you're just estimating the value for purpose of completing the Schedules, any of what you wrote works.

However, if you're going to do a lien strip, you had better come prepared with an appraisal from a licensed appraiser.

Those CMA, "automatic" valuation methods (CyberHomes, Zillow, Bank of America's, First American Credco), and even drive-bys, are not that accurate (some as bad as +/- 20%).

While some banks may let it slip by that you used a CMA (Comparative Market Analysis) or some AVM (Automated Valuation Method), it's best evidence when it's conducted by a person who actually looked at the home both outside and inside.

[deadbroke99]

Not really. If you're just estimating the value for purpose of completing the Schedules, any of what you wrote works.

However, if you're going to do a lien strip, you had better come prepared with an appraisal from a licensed appraiser.

Those CMA, "automatic" valuation methods (CyberHomes, Zillow, Bank of America's, First American Credco), and even drive-bys, are not that accurate (some as bad as +/- 20%).

While some banks may let it slip by that you used a CMA (Comparative Market Analysis) or some AVM (Automated Valuation Method), it's best evidence when it's conducted by a person who actually looked at the home both outside and inside.

I will try those. I am just using it for the schedules not for any lien stripping. Thanks!

[justbroke]

I will try those. I am just using it for the schedules not for any lien stripping. Thanks!

My favorite is actually Electronic Appraiser. They have consistently been within 2% of any licensed appraiser's work on my properties! However, they do have a fee, but I think it's worth it.

(Don't tell anyone.) ;)

[deadbroke99]

Then it that case, try the realtor route, if that doesnt work, you might have to appraise it some other way, like actually paying for it. But I wouldnt do that unless you had no choice. The value is probably much less than the 2006 bank appraised value.

Did you try expanding your search on zillow?

What did it tell you the value was when you entered in your own address?

It said address not found.

[optimistic1]

what about cyberhomes.com ?

[PoorGrammyinBK7]

Depends on where you are but ours is about 25-30% less than what is was worth in 2006That is from looking at zillow. close local comps, etc. If I go by the taxes, its gone down even more -- about 40%. I think 2006 was about the peak of the market.