Anyone challenge an appraisal? (short sales, foreclosures, mortgage)

[elliswyatt]

Anyone have any luck challenging an appraisal? Trying to refinance here and the appraisal came in about 35% less than it was appraised at in 1998. The comparison homes they used are in less desirable neighborhoods (by anyone's opinion, I think).

I know what the market's like (we've got an offer in to buy a place too), but 35% less than 1998 with some big capital improvements in the last 4 years just sounded low. Ultimately, this low appraisal means the refi company won't touch it.

We're ratelocked in at 4.75% for another couple months. Would it be worth it to challenge the appraisal, or are appraisals pretty reliable as a rule? If we do challenge it, is it in the courts, or can we just request a second appraiser (possibly at our own expense). How long does it take to challenge an appaisal?

Thanks for any input.

[TedTLPN]

I don't know any answers to your questions, but I'm going to be finding out myself. The house I intend to buy Is appraised @ 160K and I'm buying it for under 80. The thought of paying double what I should be for taxes, is not pleasant.

[nhkev]

the bank or mortgage company can challenge the appraisal but give them a reason to find better comparable properties that have sold recently and they can send them to their appraisal review dept which in turn will question the appraiser why he didn't consider these comps , the appraiser can then redo or the bank can order another appraisal with a different appraiser , but they will only do if you can show better comps-- same year, sq ft, design, neighborhood and check if the comps he used were short sales, or foreclosures because you may be able to challenge that he used distressed properties.

[jvelte]

Originally Posted by TedTAce

I don't know any answers to your questions, but I'm going to be finding out myself. The house I intend to buy Is appraised @ 160K and I'm buying it for under 80. The thought of paying double what I should be for taxes, is not pleasant.

Ted, although nobody wants to pay more in taxes than the property is worth, this does not sound like your case. Just because you are buying it for $80k does not make it worth $80k. The county taxes based on its Just Value, NOT what you pay for it. What you need to find out through the county website is what the current taxable or "Just" value is. If it is well over the appraised value of $160k, then you should argue your case and try to get your tax liability lowered. If the taxed value is similar to or under the appraised value, then be happy