MK asked:


We’ve starting talking to a lender about refinancing but our lender mentioned that when he looked online the home value for our home was less than we paid for it (we purchased nearly 2 years ago). I’m thinking that since home values have fallen, so have ours. Is there anything I can do to improve the value of our home before it is appraised? FYI: Think cheaply here. All we really have to work with is the stimulus package check.

GARTH

4 Responses to “If I might be upside-down on my loan is there anything I can do to improve the value of my home?”

1. Sahara on October 9th, 2009 3:58 pm

   LEOPOLDO

   Kitchens and bathrooms are where you will recover most of your money but only about 80%. It might be better to use the stimulus check to pay down your mortgage.

2. Mrs HarleyBrat on October 11th, 2009 10:25 pm

   CURT

   the appraisal is a footprint - they don’t look at major improvements so anything you do won’t raise the appraised value so save your $ - the scenario you speak of (being upside down) is why alot of homeowners are selling on short sales and getting out - they dont want to pay for the next several yrs on a home that isn’t worth what they’re paying for it - because they wont’ have the equity back in it for several yrs to come

3. rookem123 on October 13th, 2009 10:31 am

   AUBREY

   Find out what they consider for the appraisal. Some are very basic - they check the size of the house that is registered with the city and they drive by to just see the outside condition of the house. If that is the case, try to improve the visual appeal by landscaping, re-doing the blacktop, painting the garage door, etc. If they actually go inside and do a walkthrough then clean it well so that they get a better vibe. From there, they mostly are looking stictly at features that would add value, such as a fireplace, granite countertop, etc. So I guess find something that would be a negative about your house, and fix it. Think more about the permanent features of the house, not things like appliances that would look better but aren’t a part of the house. Finally, once the appraisal is completed, review it and argue anything that you think was an unfair thing to reduce the value for. All said, if you are only spending $1000 on improvements though, it isn’t going to affect the appraisal much, so make sure that the expenditure is something you wanted to do anyway.

4. estielmo on October 13th, 2009 4:31 pm

   MARCEL

   Check with an actual appraiser. What about the one you used 2 years ago.

   But if the rates are actually lower for you, why not re-fi at what they’ll give you and eat the rest?

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