Has anyone else noticed lenders getting much more conservative on appraisals lately?

[Frankie Vozzi]

I was reviewing a deal recently where the borrower and property both looked solid, but the appraisal came in quite a bit lower than expected.

A few years ago it feels like the value would have been supported without much debate.

Are others seeing more conservative appraisals lately, or is this market-specific?

[Stacy Raskin]

Lenders generally will go through an appraisal management company (AMC) who will assign an appraiser. I have seen values come in higher and lower compared to what the investor was expecting and that is across the country.

What I have seen be helpful with appraisers, is giving any useful information to the appraiser such as recent rehab work and costs which the appraiser can use in the valuation process. Giving comps can be helpful but there's no guarantee the appraiser will use them. The comps appraisers are using are supposed to be as similar and as geographically close to the subject property (the property getting the loan) as possible. 

I have seen appraisals come in thousands of dollars apart on the same property when the appraisal is done by a different appraiser so there is variation between appraisers. When an investor gives useful data that can be helpful for the process but it's not a guarantee it will result in a higher appraised value.