Appraisal low, should I appeal?

[Brian W.]

Not sure if this is the right place but here goes.

Four years ago I built two high end (for my area) Duplexes from the ground up. 3 Bed, 2 BA, Garage, All Brick, Hardwood, Tile, Whirlpool tub, all appliances.

Appraiser gave pre-construction values of:

Sales Comparison approach: $373,000
Income approach (GRM=110) $875*4= $385,000
Cost Approach ($65 sq ft) $407,480

I just got back the NEW appraisal from the same appraiser and here are his new calculations:

Sales Comparison approach: $344,000
Income approach (GRM=95) * $895*4= $340,100
Cost Approach ($49.65 sq ft)(summed up) $319,223

Sales comparison he uses the number of rooms, bedrooms, to calculate value. Well when you use units that are not as nice the room value is not as much.

The older appraisal he says the Income Approach should be used, the new appraisal he says the Sales Comparison Approach should be used.

The GRM has gone from 110 to 95, with no explanation why. Also the cost per square foot used went from 65 per to around 49 per.

There was a group of 4 duplexes just purchased less than six months ago on this same street for $463,000 and produce income of $4,200 a month. This gives a GRM of 110.

Obviously I am not going to accept these figures. Should I file a grievance? Anyone with this experience? Is the bank just not wanting to lend me money? We all know sometimes they have a figure and work backwards.

Help