Cash Out Refinance Appraisal

[Sean McKee]

Hello Everyone!

I just received an appraisal back on a cash out refinance loan.The amount is 10k less than I would like.  The property is a Frame 4 unit building. It’s been remodeled and brought up to neighborhood standards.

During the actual appraisal I provided an appraisal packet detailing the rehab and comparable properties.  For the comps I knew would probably be used, I pulled Freedom of Information requests to get any code violations that might have been attached to the buildings. Two of the comps used sold with significant violations and had photos of the violations. This information was provided to the appraiser beforehand.  

When reviewing the appraisal however there was no mention of this information. One of the comps received a condition adjustment upwards based on “interior photos”. The other comp however received no adjustments, despite selling with numerous violations. 

From my point of view relevant information that likely impacted the sale price was either ignored or not factored into the valuation enough. I understand that cash out refinance appraisals are always conservative, especially for 4 unit buildings that don’t sell that often.  So I definitely accounted for that. However this one was kind of irritating. It seems like the information provided was completely dismissed, even though it came directly from the city. I could be missing something.

What has your experience been with appraisers overlooking relevant information ? Have you had success in getting the value adjusted upwards after appealing?

Thanks