Challenging an Appraisal

[Narayanan Bakthisaran]

I am in the the last stage of Refinancing a BRRR purchase. The appraisal came out to be less than I wanted ($110,000 compared to $130,000 I was expecting). Few of the appraiser's comps were different from mine.

Has anyone successfully challenged an Appraisal and received a higher appraisal after pointing the right comps to be used? I look forward to your experiences. 

Narayanan

[Charlie MacPherson]

@Narayanan Bakthisaran Appraisers can be unreasonable at times.  I just had one for my home, as we're doing a re-fi.

He refused to credit us a cent for a $36,000 solar panel system that we own (not lease).  I pointed out to him that it's attached to one of our barns, making it "real property" not "personal property".  It's a hard asset that not only has cash value, but it also reduces electricity costs for the occupants.

Nope.  No value.

Lucky thing for us - we have way more than enough equity for the amount we're taking out.

As a Realtor, I have challenged a grossly low VA appraisal where I represented the seller.

We were under contract at $379K.  Appraisal came in at $330K.  This was for a Campanelli ranch that had a second story added and two walls pushed out for an expanded living area.  Where a normal Campanelli has 1300-1500 square feet and no second floor, this one had 2,600 square feet, including a 700 sq ft master bed suite added to the second floor.

This idiot refused to comp it as anything other than a ranch, even though ranches by definition don't have a second floor.

When a VA appraisal comes in low, any party can trigger the Tidewater Clause. They then have 72 hours to submit new data. In my case, I got the idiot appraiser to increase the value by $15,000 and that was enough to save the deal.

So I'd drill down deep on your comps.  Maybe pay a local agent $100 to help you.  You'll need comps that are sold as close to you as possible, as recently as possible and similar in size, style and features as possible.

Good luck!