"Drive By" Appraisal Value Not Even Close

[Ken Nelson]

I applied for a HELOC from the same bank that holds my mortgage on my primary residence. They offer a "free" appraisal which consists of a drive by, and comps. My house should have a retail value of about $390K, has a tax assessed value of $364K, and other comparable homes in the area are selling in the $350+ range, and mine is on a double lot (2 acres). The "free" appraisal came in at just $266k, over $100k less than the average home price. Now my bank said I have the option of paying for a full appraisal to get a more accurate value. My question is, is there no accountability for the company , FirstClose, that performed the drive by, if there value is so off from reality? I know values can vary between appraisers, but this is more than a slight variance, now forcing me to delay my HELOC a few weeks, and costing me a few hundred dollars.

[Jim K.]

@Ken Nelson

If I had a dollar for every homeowner I've seen complaining on BP about how they've been lowballed by an appraiser...

This is how it goes in the new economy, Ken. If you need an appraisal from a bank anywhere near your property's real value, be prepared for an uphill battle. I've been shafted, too.