Appraisal came very low during refinancing

[Buyan Thyagarajan]

Hi Guys,

I have a 4 bed 1.5 bath single family home in Norristown, PA. When I purchased this property last year 2022, the appraisal was 250k. I took out a 180k loan due to high rehab costs for 100k and completely did a new bath, repainting, roof, kitchen, and everything. I got a tenant and was going to a lender for refinancing. The refinance came to 166k which was shocking for me on how an ARV can drop from 250k to 166k. I went with another lender and the same appraisal came to 166k. I am trying to dispute the appraisal and want to know if you guys have seen a situation like where there is a drop in arv like this. The prices are still high in Norristown and need to know what is the best way to dispute the appraisal.

Buyan