Hi, I have some appraisals coming up on some multi-family properties that I am doing a cash out refi on. Any tips on how to ethically ask the appraiser for a high appraisal?
Can I ask him to appraise it for a certain amount and show him higher comps in the neighborhood? Could this blow up and he gets pissed and lowballs me?
You can share your opinion of what your believe is the value of your property. That's not unethical. And if you ask the appraiser for such and such price, she might politely nod, but laugh inside. Everyone thinks their property is worth more than average--but an appraiser must at the end of the day use facts and comparables to support an "objective" opinion of value. Their work will be reviewed by people sitting at desks thousands of miles away, so it must stand up to scrutiny. Likewise, if you want an appraiser to pay any attention to your estimate of worth, back up your opinion with facts and comparables. Your need for a high value so you can get lots of cash out is, well, irrelevant.
Create a spreadsheet of recently sold properties in your area that you believe are truly comparable to yours. Use age, style, square footage, lot size, etc to draw comparison to yours. Just stick to the facts. You can share this spreadsheet with the appraiser.
If you can't find any comparables, sit down and have a cold beer and accept reality.
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