I'm in the process of refinancing my house, and the results of my appraisal just came back.
Good news is that it is high enough so that I'll be able to refinance. The bad news is that it's not as high as I'd like. In the two years since I bought the house, this is how much it has increased in value: 0%.
You might say that is not so bad considering the nosedive real estate has taken in the past two years. But you have to consider that I've put in about 13% of the purchase price back into it with various renovations. So if you look at the total investment, I've lost somewhere around 13% of my total investment. That percentage is actually almost exactly the decrease that has occurred overall in my zip code.
A couple of months ago I used online price evaluation tools to estimate my house's current value. Two of the estimates came within 5% of the actual appraisal.
Wednesday, January 21, 2009
Appraisal Update
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2 comments:
13% is darn good, you should really be happy with that.
I bought my house in 2003(ZAR380K) and by 2008 was worth ZAR1.1M(with some improvements) but in real terms had doubled in value and now is only worht ZAR850K.If I had refinanced in 2008 I would be sitting with a mortgage that would not be covered if I had to sell my house.I would advise avoiding refinancing especially with this global recession.
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