2 months, 2 vastly different appraisals...

[George Tiglianidis]

Hello BP family,

So, two months ago I contacted my mortgage company to waive the PMI on my mortgage as I put in a ton of work into the home (bought it at $525k put $125k into it).

The appraisal was ordered and my home got appraised at $790k!!!

PMI was waived so my mission was to obtain a HELOC as I wanted to pull the equity and put that towards another investment.

Unfortunately the credit union that I applied to obtain the HELOC would not allow the appraisal from 2 months ago.

The new appraisal was ordered and they came to my house last week (gloves and masks worn the whole time thankfully).

The appraisal came back today at $695k.

So I have a few questions:

Why such a huge disparity in the 2 appraisals from the different companies?

The market here in Boston is still hot.

Also; Should I find out if the original appraisal company works with any other credit unions or banks and try to get a HELOC through their?

Thanks in advance!

[Ann Bellamy]

From 770K to 695K is far from 50%, and where the Boston area won't LIKELY drop that much, it most certainly will drop.  Lack of financing means lack of buyers.  Lack of income means lack of buyers.  That was about a 10% reduction, and giving the state of the market uncertainty, I would feel fortunate if I were you that it was only a 10% reduction.  I would grab what I could and be happy you got anything.  They can also change their offer at the last minute, rescind the offer altogether, or make the loan and then call it due or freeze it shortly thereafter.