John Barnes' appraisal of the value of our home at $850K makes no sense to me. An excellent comp right around the corner is in process for $1.28 million. I know John couldn't use that property as a comp because it hadn't sold yet, but it was selling as ours was being appraised, and that's a 34% difference in value. The properties are very similar -- they are both simple 3-bedrooms built around 1940 on full-sized lots with only modest improvements. He listed two-bedroom comps in our neighborhood selling at $950K -- they are also original neighborhood homes on full-sized lots with only modest improvements. He found 2 bedroom comps for less than $900K on much smaller lots, lots that back up to the train tracks (while the owners of those lots are scared about high-speed rail plans and eminent domain -- almost all those homes have "Not in Our Neighborhood" yard signs protesting high-speed rail) and one lot on a busy boulevard at the edge of our neighborhood right near El Camino). We are in an ideal location in our neighborhood with a full-size lot -- couldn't be better. Our location is even better than the place that sold for $1.28 with multiple offers.
I thought we needed the appraisal to come in at 900K, and I was angry that this would delay our refi, but I was wrong about that. $850K is good enough -- so my initial anger has dissipated.
I actually really liked John and the woman who scheduled the appointment on the phone. I would like to give more stars for friendliness, but I really don't think John did a good job with the appraisal. read more