Appraisals coming low when refinancing?
Hi guys,
So I have a quick question. Something that is happening to a friend of mine lol.
He bought a house last year as primary home and right now he is refinancing as an investment property. His house just got appraised at 242k. Talking with a new neighbor, who just got a similar home 1 block away a few weeks ago, his appraisal came at 260k.
They went and talk with the bank with both appraisals and the bank told them that the appraisers usually give a low ball when a refinance happens to protect the bank's interest, but when is a new purchase they look at the value market.
Is that usually true? legal? I thought an appraiser should always be unbiased and give a fair representation of what the market value of a home is.
Thanks a lot!
Update: Portland, OR :)