Does HELOC appraisal affect future home sale?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
User avatar
Topic Author
runner9
Posts: 2118
Joined: Tue Aug 02, 2011 8:49 pm
Location: Ohio

Does HELOC appraisal affect future home sale?

Post by runner9 » Sat Jun 27, 2020 6:31 pm

My mom is downsizing and paying much of the new house with a new HELOC. The appraisal for the HELOC came back nearly 1/3 lower than her realtor thinks she can sell if for. I realize these are two different things. The report does appear to get the square footage and number of rooms wrong and all comparable properties are over a mile away though several in her neighborhood (different style but still) have sold recently.

Anyway, the question is if this can in anyway affect a future sale? I assume potential buyers won't know about this appraisal and it's for a different purpose anyway. If the potential buyer gets a mortgage, especially from the same bank her HELOC is from, could this affect it?

The appraiser went through the house and took lots of pictures, etc.

If not I'm suggesting she just accept it and move on--as long as it can't come back later during a potential sale? Thanks!

User avatar
whodidntante
Posts: 8297
Joined: Thu Jan 21, 2016 11:11 pm
Location: outside the echo chamber

Re: Does HELOC appraisal affect future home sale?

Post by whodidntante » Sat Jun 27, 2020 6:53 pm

An appraisal will not affect what you can ask or what you can get. A lower than expected appraisal might mean your joint isn't worth what you think it is, however.

Gill
Posts: 6361
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Does HELOC appraisal affect future home sale?

Post by Gill » Sat Jun 27, 2020 6:55 pm

The appraisal is only between you, the bank and the appraiser. No one else should have access to it.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

Bohemiana
Posts: 32
Joined: Thu Jan 12, 2017 4:05 pm

Re: Does HELOC appraisal affect future home sale?

Post by Bohemiana » Sun Jun 28, 2020 1:40 pm

The realtor should double check with his/her preferred lender to see if it would ever show up when the new buyer's lender orders an appraisal for the purchase.

barnburner4444
Posts: 17
Joined: Mon Mar 16, 2020 7:47 pm

Re: Does HELOC appraisal affect future home sale?

Post by barnburner4444 » Sun Jun 28, 2020 2:05 pm

No. I just had a refinance appraisal hat came back 1/3 less than a heloc one I had 7 months ago that I thought was low.

go_mets
Posts: 676
Joined: Wed Oct 21, 2015 11:49 am

Re: Does HELOC appraisal affect future home sale?

Post by go_mets » Sun Jun 28, 2020 2:07 pm

I just received a HELOC two months ago.
They did not compare my house against homes in my subdivision which they should have done.
Very cursory "appraisal" at best.

.

mtmingus
Posts: 397
Joined: Sun Jan 07, 2018 4:15 pm

Re: Does HELOC appraisal affect future home sale?

Post by mtmingus » Mon Jun 29, 2020 9:26 am

Banks have every reasons to be error on the safe/conservative side in HELOC loans. My HELOC was lower than the comparable units sold at that time in my neighborhood - but they did not send anyone to inspect house.

Post Reply