Question:
“I have a question about refinancing. We owe about $420,000 on our condo and it’s finally worth enough to refinance, about $475,000. We need to have a maximum 90% loan to value to refinance so those numbers should work. But I’ve heard that refinance appraisals are conservative. Is that true?”
Answer:
Believe it or not, that’s actually one of the biggest myths in real estate.
For reasons that I’m not privy to, appraisals for a refinance tend to come in high, not low.
Here are my unscientific stats, just based on personal observation and experience:
- 60% – High
- 20% – About right
- 20% – Low
…So in other words, don’t believe everything you hear!
