Post # 1
I’m in a serious real estate slump right now. I am trying to refinance my rental house because it has an ARM and I want to lock it into a fixed. I asked my realtor to pull the comparable sales in my area and they were all between $140-150,000. Even though this is WAY less that I paid for the house, it is in line with what the value needs to be to refinance.
The bank I am working with did an appraisal and it came back at $90,000! The appraiser didn’t even pull comparable houses. Mine is 3 bed, 2 bath, 1,200 square feet with a garage and basement. He compared it to 3 bed, 1 bath 900 sq ft. houses with no garage or basement. He also pulled foreclosures and houses which hadn’t been updated in 50 years (my house is completely updated in the last 7). The average price/sq ft in my area is $105, he has mine at $78 with no explanation why!
I don’t know what to do! I don’t want to pay another $400 for a new appraisal, but I really want to lock into a fixed rate while they are low.
Has anyone ever challenged an appraisal?
Post # 3
Yikes…that sucks 🙁
The sellers of the house we bought challenged our appraisal. The appraisal came back about $15K below the selling price, and because it was an FHA loan they needed to lower the price 15k or we had to walk. They were understandably very upset and their agent challenged the appraisal and provided additional comps. It was reviewed, but the appraisal company did not change their value.
I wish you good luck though!!!
Post # 4
Ugh that sucks! My parents are having a similar problem. They are trying to refinance and had an appraiser come out about 3 months ago. Well then the bank took too long and then said they needed another appraiser to come out because appraisals are only good for 30 days. So a new guy came out and rated their house at $40k less than the last guy! And same deal… not at all comparable to similar houses, got some key features wrong (like how many bathrooms, finished basement, etc). They are in the process of challenging now. What a PITA.
Post # 5
Hmmm, I’m not sure if it would be better to challenge or just pay for a new one. Would it cost money to challenge it??
Post # 6
My gut says that you’d be better off getting a second appraisal than trying to challenge this one. Although there is no guarentee that a second would be any higher – it may truely be what the house is worth now unfortunately. Sorry you’re having to deal with this.
Post # 7
Wow that sucks. I’m sure that you can challenge it or go with someone else but that doesn’t mean that the result will be what you want. Unfortunately, home prices are still dropping. We just got a notice saying that the price of our property has dropped almost $10k for real estate taxes and they don’t like to drop them much because it means a loss in revenue to them!
Post # 8
DEFINITELY CHALLENGE! Call a Realtor you know and ask them to do you a favor and pull comps. I do this for clients all the time.
Post # 9
@MrsSaltWaterTaffy: Yeah, ours went down $30k!!!! Thankfully we are staying in our house and not planning to refy anytime soon, so it is actually a good thing since now our taxes will go down, even though our payment went up $75 a month. Makes no freaking sense….
Post # 10
@SFreeman2187: That’s exactly what I did! I had my realtor pull most recent comps, and they came in even higher than his previous comps which I asked him to pull a few months ago. I’m going to challenge if it doesn’t cost anything.
Post # 11
@CanAmBride: A challenge shouldn’t cost you anything at all.