Refinancing is on the rise in North Carolina as interest rates decline slowly and homeowners seek ways to save money, such as lowering their monthly mortgage payments.
At TAG, we help homeowners across North and South Carolina- from Charlotte to Cornelius, Davidson, Mooresville, Wilmington, and beyond- understand how the refinance appraisal process works, how it differs from a purchase appraisal, and what to expect along the way.
Are Refinance Appraisals Different from Purchase Appraisals?
The appraisal report itself appears the same in both cases, but the method of gathering information differs between a refinance appraisal and a purchase appraisal.
From the appraiser’s perspective, the goal is always the same: determine the home’s fair market value in the current real estate market. As TAG’s COO Nathan Jordan explains:
“Regardless of whether we are in Central NC in places like Huntersville and Troutman, or near the coast in places like Leland, we appraise to market value. There is no difference in our eyes between a refinance and a purchase appraisal because we appraise to market value for both.”
The main difference lies in how the appraiser collects information:
- Purchase appraisals: Realtors and MLS listings provide additional key details such as renovations, upgrades, or added Gross Living Area (GLA).
- Refinance appraisals: The appraiser relies on the homeowner to share updates, improvements, and changes not reflected in public records or outdated MLS data.
“When we’re doing a refi, we’re asking questions like ‘What have you done to the home within the last 5-10 years?’ We won’t know what’s been updated since the home was bought unless it’s told to us”
The Importance of Uncovering Renovations and Updates
This is where homeowners across North and South Carolina can make a difference- by filling in the gaps that public records or outdated MLS listings don’t show.
In a purchase, updates are usually noted in the MLS listing or highlighted by a realtor. This information is readily available and often emphasized to attract buyers.
But with a refinance, there’s no listing and no buyer to impress. Instead, it’s up to the homeowner to share updates directly with the appraiser and/or lender.
TAG Tip: Before a refinance appraisal, create a simple list of renovations and updates from the past 5-15 years. Examples include kitchen remodels, bathroom upgrades, flooring replacements, or other significant improvements. Providing this list ensures the appraiser has the whole picture.
What TAG Looks for in an Appraisal Inspection
Whether we’re appraising a home in Davidson for a purchase or a refinance appraisal in Wrightsville Beach, our process stays consistent. Our valuations rely on four key factors:
Factor
What it Means for Your Appraisal
Property condition
Overall upkeep, quality, and functionality of the home
Comparable sales in the neighborhood
Recent nearby sales are used to determine fair market value
Level of updates and renovations
Kitchens, bathrooms, flooring, and other upgrades that affect market appeal
Deferred maintenance issues
Repairs or neglected maintenance that may reduce value
TAG Tip: It’s essential to note that upgrades don’t always equal dollar-for-dollar value. As Nathan Jordan says, “A $30,000 imported granite island doesn’t return the same as a full $30,000 kitchen renovation. The overall updatedness of the home matters more than individual upgrades.”
Ultimately, refinance appraisals and purchase appraisals serve the same purpose: to establish the fair market value. The main difference lies in how the story of your home is told- through a realtor’s listing or through your own updates.
If you reside in Charlotte, Mooresville, Huntersville, Wilmington, or beyond, and are considering refinancing, the TAG team is here to provide a clear and reliable appraisal that helps you move forward with confidence. TAG us in!
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