Refinancing in Chicago, Illinois

[Jay B.]

Hey everyone, 

I'm an investor in Chicago, Illinois. My contractor did an amazing job rehabbing my property. My plan was to refinance the property, but my prospective lender's appraisal value was more than disappointing. I know the property is worth more than the appraisal value. What are steps you would take after this to ensure that you receive the appraisal value your property deserves?

[Kenneth Garrett]

@Jay B.

When you are using the BRRRR system the appraisal is a critical component. I have gotten low appraisals before. I challenged the appraiser and provided documentation to justify the correct. They charged me another fee but they did recalculate to my number. You can also contact your lender and request another appraiser. Make sure they will take the higher one. I have had lenders take the average of the two. Make sure the comps being used are using the same style, age, square foot, bedrooms, baths, basement, etc.