Appraisal using fixer house comps on my recent rehab

[David Stone]

Hey everyone! 

>> Getting to the question:  Why are the appraisals done on my recently renovated houses including comparable of bank owned properties to determine value (many of these properties in bad condition, not yet rehabbed, winterized/unknown condition plumbing/electrical, etc...)

>> Here is some background:

We have had appraisals on multiple properties, from those we have purchased ourselves and those we have sold.

When it comes to selling a house, we have had no problem getting the property to appraise for the sale.  

Our last 2 experiences in getting an appraisal for a line of credit or cash out refinance, our appraised value came in drastically lower than houses are selling for in the area and comps included many properties which compared to our home when we bought it (before the rehab)

>> Has anyone else experienced a drastic difference in appraisal values on properties between those being purchased/sold vs those being refinanced for cash out or HELOC?

(We did not receive any negative marks on the appraisal indicating any reason for a low appraisal.  The only thing appearing to effect the value were the comps which were, in my opinion, not appropriate comparables.)

Thanks!