Waiting to have appraisal done, very nervous

[lessismore2014]

I am in the process of refinancing. I just paid to have the appraisal done. I have done alot of home improvements since last year when it was appraised at $90K. I have talked to 2 realtors and they don't think my improvements will matter much since the market is down. These are some of the improvements I have done:

total kitchen remodel: new cabinets, appliances, floor, counter tops

wood deck in yard

flooring through out the house (got rid of carpets)

bathroom: vanity, floor, toilet, fixtures

front door back door replaced and storm door added to back door

front steps of house was redone

new hot water heater

will have a new furnace/AC (its on order)

Zillow.com has my estimate at $134,000. (that's their estimate and my improvements added). I know that Zillow isn't accurate but I've checked a couple different sites where it gives you the value of the improvement made and the estimate is anywhere from $125,000-138,000. I'm really nervous about this appraisal. I really need to refinance.  Any comments? or input?

[Anonymous]

Well, I'm neither a realtor nor a contractor, but I don't think I'd expect an increase in value between 33%-50% via cosmetic changes alone. Apparently, you haven't added any square footage to the home.

Were the items you upgraded unserviceable before? Or just upgrades?

In any case, good luck.

[ShanetheMortgageMan]

Yeah square footage is where the value gets added.  When value is determined it is compared to other homes with similar square footage, bed/bath count, age, proximity, etc.  Upgraded features like you mentioned may squeeze an extra $5-10k out of the value in a market where $90k is the average value.

Do you have a conventional loan, and is it owned by Fannie Mae or Freddie Mac?  If so, you may be eligible for the Making Home Affordable refinance programs.  Check your eligibility out at http://makinghomeaffordable.gov/.  If you are eligible, there may be refinancing options that would support a loan-to-value up to 125%.