Cash out Refinance- two questions

[Brandon Glick]

Hi all,

I am currently undergoing a cash out refinance (w/ a FHA loan provider) with my business partner on a duplex that we own. Both units are 3 bed / 2 baths.

The appraiser came in short of what we were expecting. I had 2 questions

1) the appraiser used comps of other duplexes, 1 of the comps was a duplex that had 2/1 and a 3/1, the 2nd comp was a duplex with two 2bed/2baths units, and the 3rd comp was a duplex that had a 2/1 and a 3/2. Against the 1st comp he gave us a $10K adjustment against both units regarding additional bedrooms/bathrooms. Against the 2nd comp he gave $0 adjustment, and against the 3rd comp he gave us a $10K adjustment against the 2/1 unit. 

In essence, he seems to valuing the extra bathroom at $10K, but giving us no positive adjustment for having extra bedrooms when applicable. Does this make sense to anyone?

2) Our mortgage originator previously was handling all communication with the appraiser through some appraiser firewall. However, they now say that that portal has been shut off. However, she gave us the email address of the appraiser (although she mentioned she wasn't sure if she was allowed to do this). Are we allowed to contact the appraiser here? Or is this illegal (this is Florida)? 

thanks!

[Jordan Garcia]

Hey @Brandon Glick These are great questions. I’ll do my best to help answer them for you based on my experience as an appraiser. 

1. The reason why some appraisers don’t give value for extra bedrooms when comparing units of multi family property is because the adjustment is generally included in the square footage adjustment of the grid which are based off of a $ among per square cottage difference. I can’t speak for this specific appraiser but that is my train of thought when making adjustments for bedroom count. 

2. Did you request a reconsideration of value? This should’ve started with you making a request through your lender and then the lender reaches out to the appraiser.