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Old 07-14-2012, 06:08 PM
 
1 posts, read 1,626 times
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We recently went to a bank for a quick refi, and the appraisal came back shockingly low. I suspect the issue to be the selected comparable s are not anything close to our house in size. We have a 4 br 2 bth house and all but one of the comps are 1 or 2 br and 1.5 baths, the other had an adjusted price within 1k of our CMA from our Realtor. The 1 and 2 br had adjusted prices 30-40k lower. and one of them was weighed in the the math twice.

any help would be greatly appreciated!

Thanks
JF(South Dakota)

Last edited by Flemingjon; 07-14-2012 at 06:10 PM.. Reason: Typo
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Old 07-14-2012, 09:54 PM
 
Location: Kailua Kona, HI
3,199 posts, read 10,964,715 times
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This happened to us a couple of years ago on a refi. The appraisal was so ridiculous that we sent a letter to the lender citing all the mistakes, which included poor choice of comps. We flatly rejected the appraisal, refused to pay for this one, and demanded a new one. Smoke was probably rising from that letter when they opened it. Don't give up, it's very questionable. Do you have a realtor friend who would pull the correct comps for you? Also, did you go over the appraisal line by line checking for mistakes. Ours was such a mess that you could tell she had pulled up a template from a previous property and forgot to change some of the information that pertained to the previous property. Unbelievable.

We won, and she didn't get paid either.
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Old 07-15-2012, 02:43 AM
 
Location: OK
2,717 posts, read 6,292,825 times
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Quote:
Originally Posted by Flemingjon View Post
We recently went to a bank for a quick refi, and the appraisal came back shockingly low. I suspect the issue to be the selected comparable s are not anything close to our house in size. We have a 4 br 2 bth house and all but one of the comps are 1 or 2 br and 1.5 baths, the other had an adjusted price within 1k of our CMA from our Realtor. The 1 and 2 br had adjusted prices 30-40k lower. and one of them was weighed in the the math twice.

any help would be greatly appreciated!

Thanks
JF(South Dakota)
I would like to help you out but I don't understand the statements in bold. Can you expand?
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Old 07-15-2012, 06:44 AM
 
Location: Lakewood Ranch, FL
5,117 posts, read 7,644,459 times
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Are you saying that your Realtor found better comps that were not used for the appraisal? For example, on the same street or within a mile of your home, sold in the past 3-6 months, that sort of thing? Appraisers do have to use the comps available to them within their guidelines. If good ones can't be found they can take cruddy ones and adjust them (as yours did) but, of course, the math has to be right! Anyway, if your agent found better comps, you might be able to get them to take another look, especially if the adjustments can be found to be improper. At the very least, try to get them to have someone else review the appraisal for accuracy.
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Old 07-15-2012, 07:42 AM
 
28,384 posts, read 67,954,698 times
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In the current market conditions the "freshness" of the comps is paramount. Anything older than 90 days or so just is not going to cut it. If the OP's comps were sold more recently that is almost certainly why they were used. Unfortunately the 'straight line" formula that too many appraisers rely on to factor the price difference of a 2 br vs something with double the space is rarely enough to account for the FACT that no one with a family would ever consider a 1 of 2 br and it is likely in a whole different neighborhood than a nice solid 4 br...

If there are not more recent comps that have similar features to your own home the lender may be understandly concerned that folks are just not buying in your area. That too affects their lending decision.
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