HELOC APPRIASAL ON SFR

[Jorge Ruiz]

Hello BP! I am attempting to refinance in order to get a HELOC from my primary residence. On the application it asked for what I believe my property is worth. They countered with a value $50K for what we believe it is worth. My options are I go with their 'automatic value model appraisal' or pay a non-refundable $500 for them to have someone appraise my property. Is any of this negotiable- both the appraisal and the $500 fee? Thanks BP in advance for any help.

[Russell Brazil]

Appraisers are picked through a 3rd party company. Neither you nor the bank will have any sort of role in picking the appraiser per Dodd/Frank. So you don't really have any say in the price of the appraisal. During high demand times appraisal prices typically go up, and during weak demand prices may soften.

I would also suggest that you be prepared that the appraisal will likely come in at a price that is more conservative than what you think it should be.