Can I challenge an appraisal?

Question

Long story short - I am trying to get a HELOC and had my home appraised last week (that I paid for). I live in a hidden little part of Los Angeles and pulled 8 comps for the appraiser, all within a mile, all within 5 months and that all sold between $250-$320/sq ft. One of the comps being directly across the street from my home. All were traditional buyer/seller transactions or high end flips.

Appraiser didn't use any of the comps I gave him and instead pulled homes that sold between $120-$220/sq. ft. Some were short-sales and probates. I understand that the appraiser can use the comps he chooses to, but this feels like a bit of an unfair appraisal. Even if he just used 2 or 3 of the comps I gave him I would've gotten a much fairer value on my home.

Can I ask the bank for a new appraisal, or challenge this somehow?

Thank you.

Account Closed · Answer

Ben Kahle - I think you should be okay without the lot size. However, you might want pull comps from Redfin.com that shows the lot size to supplement the county information or if you have a friend whom is an agent to pull them off the MLS.

Account Closed · Answer

Ben Kahle - anytime

Account Closed · Answer

Ben Kahle  - reach out to your loan officer or your contact at the bank that is doing your financing. Usually with a simple phone call will suffice, but doing it in writing will be more effective and will prevent any miscommunication.

Account Closed · Answer

I agree with J  Scott .  As a paying customer you have the right to request a "review" or "appeal" the existing appraisal report. However; keep in mind that some banks usually will cover the appeal or review cost, but other lenders don't.

Phillip Dwyer · Answer

There are crappy people in every profession, and unfortunately appraisal isn't insulated from this.  I recommend meeting the appraiser at the house and ask for photo ID. Despite many laws that have been created to "help" with appraisal issues, there are still shady people out there.  There are shops that will send unlicensed people pretending to be the appraiser so they can get more jobs done.  I doubt this is super common, but it does happen.

Bryan L. · Answer

There may be appraisers on here and I may get an earful, but I've seen some real dumb s#%t in appraisals.  And it's really not that hard of work.  I once was trying to do a refi on one of my rentals.  The appraisal came in low.  For his comps, the guy used a double-wide manufactured home (mine was a stick-built site-built house), and another house that had burned to the ground (seriously, the pics showed a pile of black rubble).  I once had a flip that appraised by some dumb-a#% in the 50s, so my deal fell through.  Next buyer, it appraised in upper 70s.  Have you ever taken a real close look at an appraisal report line by line, page by page?  There's surely no rocket science to it, but some guys just seem determined to cost me money.

Account Closed · Answer

Matt Devincenzo - Thank you. The assessors website doesn't list much info on the homes. They don't even list lot size. Does that matter?

Matt Devincenzo · Answer

Use your county website and show them from there. I know for Orange County, FL they have their own search tool that you can narrow comps down, and since it is a govt site there isn't anything that doesn't show up there except for sales in the last few weeks that just haven't updated.

Here is what I found for L.A. I'm not sure if it has what you need but if you poke around you should find something.

http://assessor.lacounty.gov/extranet/datamaps/pais.aspx

Account Closed · Answer

Darwin Cruz - Bank agreed to review with new provided comps. If I send them comps from Trulia (or a similar site) will it reflect poorly? I do not have access to the MLS.

Account Closed · Answer

Darwin Cruz - Will do, thank you very much.