Hat tip to Susie for sending in this article on appraisals:
This past July Janice Charlton of Thousand Oaks, Calif., says she was low-balled on a refinance appraisal with the value coming in at $745,000. “I was completely shocked. I follow the real estate market,” said Charlton.
She appealed the value through the lender with the AMC that hired the appraiser, to no avail. “It’s arbitrary. It’s a real conflict-of-interest,” she added.
Charlton did not give up. She applied elsewhere. Less than a month later another appraiser through a different lender brought the value in at $860,000. Charlton’s perseverance paid off. She completed her refinance, saving $1,397 per month with her new, lower house payment.
Unfortunately for the loan rep, this borrower did the only thing she could to obtain her refinance – go to another bank.
Low appraisals are not as common on purchases because the appraiser is given the sales price and told to hit it. But I never take it for granted – I meet every appraiser on time, and bring several comps to justify the price. It’s a sales job – realtors who send one of their assistants or just tells the appraiser to use the lockbox are asking for trouble. Get Good Help!