Updated almost 8 years ago on . Most recent reply
Low appraisal for HELOC
Hello BP
Recently I applied for a HELOC on my home and was looking to use the money to invest in a rental property. The home appraisal from my credit union was significant lower then what I expected. The credit union official advised me to have an in home appraisal as this may generate a higher number then the drive by appraisal they did.
Will this make any difference?
My neighbor is selling his home that is equivalent to mine in size however outdated inside and less upgraded then my house. He was offered over listing price.
Should I wait until he sells so his home is compared to mine? His home is selling for 430k and they appraised mine at 370k.
Your help is appreciated
Most Popular Reply
@Paul Papamarkos Hi Paul, my strong recommendation would be to wait the 6 weeks and let your neighbor's house actual sell. When banks look at comps, they look at sold properties, not ones on the market or under contract. Once it sells, I would request an actual appraisal. They will then use comps and you should be good if your neighbor's house is truly similar to yours. If your bank won't do that, I'd find another bank. There are tons of banks out there offer great deals on HELOC's right now. Hope this helps. Best of luck.