Refi Appraisal Problems

[Jonathan S.]

Hi All,

Purchased a Duplex 2/2 for 160k a year ago; had to separate all utilities and upgrade oil to gas. Put in about 30k all said and done. Owner occupied.

Rent is pulling in 1250 a month. Mortgage 1140. Nice deal. So after going on Zillow I find out my property is now worth 205k. I qualify for 100 cash out refi but we just go the appraisal back at 160k. Sick joke or what. Granted the area's SFH sales are on the lower end and there aren't any Duplxes in our category that fairly compares. Duplexes 5 min away in other town/school district are going for mid200s-low300s. Unsure if I can argue that aspect.

The report listed various SFH comps and some real crappy Duplexes. Highest comp down the street is 199k for a 3/2. Appraiser basically is factoring a 40k price tag to each bathroom. He also wrote a diatribe about how the financial markets are weak and economy hasn't fully recovered, people have high CC bills etc. I mean wth is with that nonsense.

Thoughts/options?

[Chris Mason]

@Jonathan S., wait until you can find a specific comp or two that actually closes that you feel are great comps. Show them to the appraiser when he shows up.

Appraisers can NOT go "oh you spent $30k on this, it's worth $30k more." They have to use actual closed comparables and extract data from that. 

That being said, the commentary about financial markets and consumer credit card debt exposes the appraiser as letting his personal politics get into his job, which is unprofessional. Some appraisers also dislike BRRRRrrr, again as a personal political opinion / agenda. If your lender, I'd be internally petitioning to have this appraiser removed from our board (which I've done a few times before successfully). We aren't asking you to opine on American consumer debt, international financial markets, or REI strategies, Mr Appraiser, we are asking you for your best opinion of value WITHOUT your political agenda getting in the way.

This might be one where ordering a second appraisal will get the job done, depending on how skewed the opinion of value was by the appraiser's political agenda.