What can you do about an appraisal?

[Jonathan Basden]

I started the process for a refi to pull out some equity for my first deal.

The appraisal came back low in my opinion (292,000) 20K less than it was one year ago when the interest rates were a full percent higher. (According to what I researched.) Average property values in my area (Roseville CA) have also increased by 2% (also according to my research).

We’ve added value to our home by extending the living space into the garage partially (75 square feet). This allowed us to add a dedicated laundry room and a walk in pantry. Both of these things are not common in this or nearby neighborhoods.

It seems as tho they used a calculator based on comps which had knocked the price down, and rightfully so, for our lot being smaller than most nearby. They’re not adding value for though for the added rooms, however. The property is also in great condition, IMO, as we remodeled the entire inside of the property about 4 years ago. I mean everything from the floors up to removing popcorn ceiling. Everything was replaced.

Has this happened to anyone else? Is this common?

For what it is worth:

Zillow estimates 331,000 - 370,000

Redfin estimates 312,500

Trulia estimates 353,000

Appraisal as of May 2018: 312,500

Appraisal as of today : 292,000