The art (scam) of appraisals

[William Walker]

I wanted to do a cash out refi so I called my lender. They asked how much I wanted to take out and I said as much as possible. They asked me what I thought the house was worth and I said $250k, Zillow says 255k so about there. The lender looks at Zillow while talking to me on the phone and says yea that’s about right. I get an appraisal. Guess what exact amount my property appraised for?????  250k on the penny. Magic. 

I bought a house for 87k two years ago. Probably a good price but not amazing. County places a tax assessment at 120k. I appeal, they deny, I appeal again, they deny again, I go in front of a board and give them comps from the same neighborhood that sold the year prior, the same year, and the next calendar year. The county appraiser used a 35 year newer house with different bed/bath and sq foot in a different neighborhood as a comp and my appeal was denied. (Whole process not worth 5 minutes of my time but it was the principle!)

appraisals - where common sense doesn’t matter and the numbers are made up!