I started the process for a refi to pull out some equity for my first deal.
The appraisal came back low in my opinion (292,000) 20K less than it was one year ago when the interest rates were a full percent higher. (According to what I researched.) Average property values in my area (Roseville CA) have also increased by 2% (also according to my research).
We’ve added value to our home by extending the living space into the garage partially (75 square feet). This allowed us to add a dedicated laundry room and a walk in pantry. Both of these things are not common in this or nearby neighborhoods.
It seems as tho they used a calculator based on comps which had knocked the price down, and rightfully so, for our lot being smaller than most nearby. They’re not adding value for though for the added rooms, however. The property is also in great condition, IMO, as we remodeled the entire inside of the property about 4 years ago. I mean everything from the floors up to removing popcorn ceiling. Everything was replaced.
Has this happened to anyone else? Is this common?
For what it is worth:
Zillow estimates 331,000 - 370,000
Redfin estimates 312,500
Trulia estimates 353,000
Appraisal as of May 2018: 312,500
Appraisal as of today : 292,000
In my experience refi appraisals come in low. 20k below market value is not unusual in my experience. I’ve heard the big bank appraisals are even more conservative. I’ve challenged appraisals with limited success. 11k boost once and a 20k boost another time. Start by pulling the comps, and looking for pictures and info online. Try to find errors In the comps and your property to argue the appraisal. Good luck. Also, don’t trust zestimates or the like.
I’ve got the same experience as above, and have also pulled my own comps to show similar houses and values to the appraiser. The last couple I had were from out of town and really didn’t know the coastal area in which we operate. Houses can be $2M on one side of the street and $500k on the other. Local knowledge matters!
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