How to deal with a bad appraiser

[Damein White]

So my appraiser came and did my appraisal but from the jump he was letting me know we are not cool he didn’t like i did accent walls, he didn’t like i had a mini split in each room he said i should just get a furnace. He told me he was going to not comp my house for my area but the city i stay in so many words. I just stop talking and just followed and spoke when spoken to 

And he low balled me 

Mind you i have a new kitchen new bathroom room all new plumbing and electrical i gutted this house to the studs and my house is almost $40k lower if sold at this price cheaper then lowest house over here that sold 

[Robin Simon]

Quote from @Damein White:

So my appraiser came and did my appraisal but from the jump he was letting me know we are not cool he didn’t like i did accent walls, he didn’t like i had a mini split in each room he said i should just get a furnace. He told me he was going to not comp my house for my area but the city i stay in so many words. I just stop talking and just followed and spoke when spoken to 

And he low balled me 

Mind you i have a new kitchen new bathroom room all new plumbing and electrical i gutted this house to the studs and my house is almost $40k lower if sold at this price cheaper then lowest house over here that sold 

 This is from the appraiser through your refinance lender?

[Damein White]

Quote from @Robin Simon:

Quote from @Damein White:

So my appraiser came and did my appraisal but from the jump he was letting me know we are not cool he didn’t like i did accent walls, he didn’t like i had a mini split in each room he said i should just get a furnace. He told me he was going to not comp my house for my area but the city i stay in so many words. I just stop talking and just followed and spoke when spoken to 

And he low balled me 

Mind you i have a new kitchen new bathroom room all new plumbing and electrical i gutted this house to the studs and my house is almost $40k lower if sold at this price cheaper then lowest house over here that sold 

 This is from the appraiser through your refinance lender?

Yes 

[Bob Stevens]

Quote from @Damein White:

So my appraiser came and did my appraisal but from the jump he was letting me know we are not cool he didn’t like i did accent walls, he didn’t like i had a mini split in each room he said i should just get a furnace. He told me he was going to not comp my house for my area but the city i stay in so many words. I just stop talking and just followed and spoke when spoken to 

And he low balled me 

Mind you i have a new kitchen new bathroom room all new plumbing and electrical i gutted this house to the studs and my house is almost $40k lower if sold at this price cheaper then lowest house over here that sold 

Address?  I will tell you in 20 seconds what it worth 

[Mark Munson]

Hi @Damein White

You can dispute the appraisal, you'll just need additional comps to do so. Every lender on BiggerPockets has probably disputed hundreds of appraisals, I know we have and usually with great success, assuming there was an error or a failure to use clear, similarly spec'd comps. If a dispute doesn't work, ask the lender to order a new one. It will likely cost you more money, but you probably won't have another alternative. If the lender refuses, use a different lender. 

[AJ Exner]

Quote from @Damein White:

So my appraiser came and did my appraisal but from the jump he was letting me know we are not cool he didn’t like i did accent walls, he didn’t like i had a mini split in each room he said i should just get a furnace. He told me he was going to not comp my house for my area but the city i stay in so many words. I just stop talking and just followed and spoke when spoken to 

And he low balled me 

Mind you i have a new kitchen new bathroom room all new plumbing and electrical i gutted this house to the studs and my house is almost $40k lower if sold at this price cheaper then lowest house over here that sold 

Man, unfortunately its a tale as old as time. My gut says you would be best served ordering another appraisal and staying far away from that appraiser. You could provide comps nearby and try to dispute but it can also be a losing battle. I've had clients that we've disputed, got low balled again, and just ordered a new appraisal and got what we expected. Hate that it happens, but it definitely can.

Might need to calculate what your time is worth and deciding next steps from there.

Good luck!
 

[Damein White]

Quote from @AJ Exner:

Quote from @Damein White:

So my appraiser came and did my appraisal but from the jump he was letting me know we are not cool he didn’t like i did accent walls, he didn’t like i had a mini split in each room he said i should just get a furnace. He told me he was going to not comp my house for my area but the city i stay in so many words. I just stop talking and just followed and spoke when spoken to 

And he low balled me 

Mind you i have a new kitchen new bathroom room all new plumbing and electrical i gutted this house to the studs and my house is almost $40k lower if sold at this price cheaper then lowest house over here that sold 

Man, unfortunately its a tale as old as time. My gut says you would be best served ordering another appraisal and staying far away from that appraiser. You could provide comps nearby and try to dispute but it can also be a losing battle. I've had clients that we've disputed, got low balled again, and just ordered a new appraisal and got what we expected. Hate that it happens, but it definitely can.

Might need to calculate what your time is worth and deciding next steps from there.

Good luck!
 

Thank you 

[Damein White]

Quote from @Mark Munson:

Hi @Damein White

You can dispute the appraisal, you'll just need additional comps to do so. Every lender on BiggerPockets has probably disputed hundreds of appraisals, I know we have and usually with great success, assuming there was an error or a failure to use clear, similarly spec'd comps. If a dispute doesn't work, ask the lender to order a new one. It will likely cost you more money, but you probably won't have another alternative. If the lender refuses, use a different lender. 

 Thank you 

[Damein White]

Quote from @Bob Stevens:

Quote from @Damein White:

So my appraiser came and did my appraisal but from the jump he was letting me know we are not cool he didn’t like i did accent walls, he didn’t like i had a mini split in each room he said i should just get a furnace. He told me he was going to not comp my house for my area but the city i stay in so many words. I just stop talking and just followed and spoke when spoken to 

And he low balled me 

Mind you i have a new kitchen new bathroom room all new plumbing and electrical i gutted this house to the studs and my house is almost $40k lower if sold at this price cheaper then lowest house over here that sold 

Address?  I will tell you in 20 seconds what it worth 

 I just connected so can send you address 

[Bruce Woodruff]

I used to work with great Realtors who would show up on appraisal day and greet the Appraiser with a folder full of comps that were very flattering, plus paperwork describing in glowing detail all of the improvements to the house and their value.

I would insist on a new appraisal, and either have your Realtor do the above, or do it yourself. It really does have some impact IMO.

[Bailey Coleman]

Quote from @Bruce Woodruff:

I used to work with great Realtors who would show up on appraisal day and greet the Appraiser with a folder full of comps that were very flattering, plus paperwork describing in glowing detail all of the improvements to the house and their value.

I would insist on a new appraisal, and either have your Realtor do the above, or do it yourself. It really does have some impact IMO.

 I 100% agree with that statement. I do this everything and I can say it has tremendously impact my value. 

[Chris Barrett]

This is what I do ^^ every time. I've had 50% bad appraisers vs competent ones. I dispute every time up to ordering a new appraisal. I'm also not afraid to tell the lender that the appraiser is wrong and that I'm not interested in working with them again. 

[Bruce Woodruff]

Quote from @Chris Barrett:

This is what I do ^^ every time. I've had 50% bad appraisers vs competent ones. I dispute every time up to ordering a new appraisal. I'm also not afraid to tell the lender that the appraiser is wrong and that I'm not interested in working with them again. 

Yeah, it just makes sense right? Most appraisers aren't bad guys, they're just too busy, and probably unfamiliar with a lot of the neighborhoods they're looking at. 

By giving them this info , we are doing a couple of things - First, giving them solid data that they may not have. Secondly, you're putting at least a little bit of pressure on them that you know, or think you know, what the price should be, and that has to sway them a little bit in my opinion.

In my experience, appraisers are always low. The reasons are obvious - their main purpose is to justify the loan amount and make the lender feel safe. They have absolutely no reason to appraise it any higher than that. 

Homeowners and Investors need to stay on top of them and be assertive, (but not unrealistic.)

[Chris Barrett]

Yeah absolutely, I'm always extremely friendly with, well everyone generally, but every appraiser. But when I have an appraiser come back with comps from a year ago from when I purchased the building and then they refuse to recalculate based off of recent comps, I'm not going to be interested in working with that person again. In this business you need to be assertive in protecting your interests and your business's interests.