Our Finances: Real Estate Values

Since we weren't exactly planning to refinance, I was worried the appraisal might not go so well!

About a year ago I remember looking at http://www.zillow.com/ and finding out that our house was worth 15% more than we purchased it for back in 2004.  Over the past year I have not really paid much attention to the local real estate market or the estimated value of our home since we weren't looking to sell any time soon.  Nonetheless I used that amount on the refinance application, thinking it probably had not changed all that much.

The day after our refinance was approved, I was out walking with Morgan in the cul-de-sac.  I happened to strike up a conversation with a neighbor about the house directly beside our home.  The people renting it had moved out recently and the house was starting to look abandoned.  It seemed odd to me, since we knew the owners and knew they cared a lot for this house. 

I found out from the neighbor that the owner had lost his job and the house was in foreclosure.  As I walked back to our house, I noticed the flier on the for sale sign said "Just Reduced" and it was $50,000 less than it had been a few months ago! 

Holy crap!  How the heck were we going to get an appraisal for the amount I had listed on the application when the bank was asking for less than we paid for our house and that house is bigger and nicer!

I ended up having to amend the application!

Even still, I knew we had to get our house appraised as quickly as possible...before that house sold.  At that price, I could not believe it was still on the market even.  It ended up going under contract that very afternoon!

Tomorrow I will share some appraisal tips!