Appraisal Difference 100k?!

[Jon Lallande]

Hi all,

One of my good friends is trying to refinance his house. Within the last month he got two appraisals from two different appraisers. The first appraisal came in at $645,000. Three weeks later, the bank ordered an appraisal for the refinance which came back at $555,000. Nothing was done to the house in the time between the two appraisals. So far I haven't found anyone who can explain why this would happen. I'm hoping the experts can help shed some light. 

To give a little insight - my buddy bought the house in January 2018 for $545,000. Since then he fully renovated the kitchen adding all new stainless appliances, quarts counter tops, new cabinets and recessed lighting. He also completely updated the master bathroom. The total for all renovations added up to $20k. 

The house is an attached SFR. 2 Bed 2 Bath. 1380 sq/ft in San Clemente, California less than 2 miles from the beach in a rapidly appreciating area. Since purchasing the house, a neighborhood next door was built with all new construction. Most of the houses being over 1M.

Has anyone ever dealt with a similar situation? I'd love to hear back from some appraisers to see what could be going on. Any advice would be appreciated! Thanks!