Im not sure how far RWN should go to make things right as of course not doing your own inspection and appraisal is pretty stupid.

As a real estate appraiser, I am always looking at the value of the underlying collateral in the event that I might own it.What do you do with the notes that you purchase? 

Example - borrower uses loan to purchase a home in a B or C grade neighborhood for 380k, spends 50k rehabbing primary home, uses 200k to put an ADU in the back, appraisal comes back at 925k. 

SFR houses will only appraise based on comps.So unless someone was paying cash you can't get more than they appraise for.The camp ground is a different story.

Search the BP for ADU appraisals to encounter numerous examples.

The location all in,cost him X; he got an appraisal for the bank from CBRE national firmof XX and now the firm who called him mentioned paying XXX.

Why would you spend the money on an appraisal now?

@Eric J Nelson The appraisal was a bit disappointing.

It appraised 242k prior to any renovations.

HOWEVER, this is a VERY expensive way to acquire property and can backfire if the new appraisal doesn't come in where you need.