Latest Discussions : Buying & Selling Homes

TchrMommy

07:20PM | 03/16/03
Member Since: 01/04/04
84 lifetime posts
My husband and I are trying to qualify for a second mortgage. We just recently started remodeling the basement. It was done poorly the first time, with old wood paneling and vintage carpet. We've ripped it a; out and started drywalling anew. So far only the ceiling is hung. WE have all the materials in the house to finish the walls and we have rolled up carpet in the garage waiting to be installed. Because we're doing it ourselves it's taking longer, but I am worried it will hurt our appraisal. The last appraisal indicated a finished basement. Do appraisers take into account materials on site, or does the job have to be done? How bad will this hurt my appraisal. It's about 400 sq feet of our overall 1600 square foot home.

Jay J

04:02PM | 03/25/03
Member Since: 10/26/00
782 lifetime posts
Hi TchrMommy,

If the room is habitable, heated and/or cooled, the basement is considered a finished room. It doesn't have to be 'pretty'. A finished basement doesn't necessarily add value to a home. That depends on variable such as the neighborhood, what the layout of the rest of the house is, and its use. (Bedroom vs. Family Room vs. Wood Shop vs. whatever.)

My best to ya and hope this helps.

Jay J -Moderator

PS: You can ask the Appraiser this same ? ...

PPS: God Bless America!

treebeard

01:28AM | 04/04/03
Member Since: 01/14/03
264 lifetime posts
Having just gone through such a process, deciding to refinance smack in the middle of renovations, I can tell you that our experience shows that the lender may, indeed, want to see the renovations completed prior to committing to lending additional money or refinancing. Our situation was such that our rate lock had to be extended a few weeks, at our cost, in order to complete the renovations and schedule a second visit by the appraiser. Lenders aren't the most trusting souls in the world, and they rarely, if ever, take your word that this or that will be done. Even if you have all the materials ready to go and visible progress at hand. They are, of course, only protecting "their" investment...not yours.

slider9499

02:32AM | 04/07/03
Member Since: 04/06/03
19 lifetime posts
Most appraisals are done as "drive-bys". That is, the bank sends someone out and they literally drive by the home. In NY this is the common and quickest way for them to be done. If the homeowner does not like the appraisal then it would their responsibility to get another at their own expense.

rmurray223

09:36PM | 04/10/03
Member Since: 01/03/03
97 lifetime posts
The appraisal should be affected too bad, alot of what they look for is that the basement is structually sound with no leaks, sags, or outstanding defects, if it is finished or partially finished doesnt really affect it too bad, expecially on a refi appraisal they generally inflate the value just a bit of your home, and it is hard to put a true value on a basement sothey generally figure it $25/sqft finished and $19 unfinished (samples of where I am at your figures may be different) If you are partially finished they will take a medium I am sure.


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