All Forum Posts by: Elizabeth Rose

I have experience with a lot of appraisals in San Diego (but few HELOC). I will state that refi appraisals are more conservative than purchase appraisal and not by a few percentage. They will find comps to justify this lower valuation even over other better comps. In addition, the appeal process is filled with subjective determination. I have had mixed success on the appeals. I did basically push one incompetent appraiser out of the San Diego market because his appraisals were so bad he was getting the reputation he deserved (I won 2 large appeals and he left when I was appealing a third which sucked for me). I had two properties appraised recently, one for refinance and one for other purpose. The difference on each was ~10% and 10% on these properties were 6 figure difference.

To address @Patrick Britton sarcastic reply on why I know the value better than the appraiser in my market is that I deal primarily with small multiplex in my market. Typically there are no more than a few of these hitting the MLS in my market in a month. In a large percentage of the cases I was in the comparable at the time of sell. I know the condition far better than the appraiser of the comps having been inside them. I also know the zoning/permits better than the appraiser on some of them because if they passed initial evaluation I looked up the zoning and permits. The appraisers in San Diego do not typically look up the permits. This is most of impact on properties with ADUs. If they are comped at a true multiplex the value is typically significantly higher than if it was comped as a SFR with ADU. Similarly multiplexes with ADU are by rule not financable with F/F loans, but if the appraiser does not verify the permits and how the units were added (i.e. as ADUs) they obtain their financing the same as if all units were not ADUs. SFH without unit permits get comps as quads. I can write a book on it, but I do not know the solution other than to get rid of the most incompetent of the appraisers. Appraisers do not have the time to go into each property. They apparently do not have time to verify permits (under what criteria units were added or that the work was even done with a permit).

To the OP, I fear your property will consistently appraise low when obtaining HELOC or refinancing and that a re-appraisal will not reflect what you are seeing of homes being appraised with an agreed upon negotiated selling price.

I am not saying this is the way it should work.  A property should be appraised the same if being sold or refinanced.  I am saying from my experience, refinances typically appraise far below the price the property would sell for in San Diego (they appraise more conservatively).

I also recently had a flake appraiser.  I had her assigned once before (a little less than a year before this issue) and she got bit by a dog and cancelled out.  Not a big deal.  She was assigned one of the two properties I needed two appraisals.  She stood us up on the initial meeting.  She apologized but did not rebate any of the fees which when I require a second visit I get charged (and she did charge me for a second visit because some railings were down at the powder coat on her first visit).  She indicated she would do the second needed appraisal.  After a couple weeks with no 2nd appraisal we started to call her and we left messages on her voice mail.  We called about every 2 weeks and left voicemail each time with no return call.  We finally got a return call.  She indicated she was moving out of state and did not have time to do the appraisal.  I suspect she had the best intention of doing the appraisal but for whatever reason was not getting to it.  She should have let us know earlier (it was over 2 months without getting a reply from her).

Like many professions there are good appraisers and poor appraisers, but my experience is even the good appraisers appraise refinance homes conservatively (but find decent comps to justify their appraisal).

Good luck

Throw money burning in the wind paying for your second appraisal. The credit union will never accept an appraisal you order, it's against the law. The time to provide comps, photos, and details was before appraisal was ordered. Most HELOC lenders use AVM 's which are always lower. The only acceptable comps are ones closed with a loan in past three months, not cash. Go to another lender. HELOC rules are getting tighter and many companies pulled out in the past thirty days. Where are you I can recommend based on location. This is owner occupied right?