Refi appraisal: does vacancy lower appraisal value?

Question

I'm trying to refinance my duplex, they should call in in the appraisal soon. But suddenly one of the tenants moved out and one unit is currently vacant. Will the appraisal likely lower the value because of the vacancy?

It would be best not to delay the refi process for many reasons, but if vacancy will lower the value then maybe I should wait...

Do appraisal officers lower (partially) vacant home's values?

Steve Morris · Answer

In OR, appraisers, even if its 100% usually put in a vacancy factor (here its like 5%) when they calc income.

I wouldn't worry about the appraisal too much.  However, on larger props (happened to me) using an agency loan (FNAM/FMAC) they are getting pretty picky - Like every month until close they want to see occupancy and make sure it stays above a number (in my case 95%).

Cody Campbell · Answer

@Stan C. I haven't had an issue with empty units. Actually I get most of my properties appraised while they are empty. Just let them know what the unit rents for and start the vetting process for a new tenant. So it should not affect the appraisal. Also, I am usually there on site when the appraiser is there and I'm very up front with them and tell them what I'm trying to get out of the property. I tell them I need to get this (amount). Usually goes well for me.

Stan C. · Answer

Thank you. Unfortunately I can't be present during appraisal. Should I try to talk to the appraisal before/after he sees the house?

Had anyone else had similar or opposite experience with Cody's?