Cash Out Refi - justify getting a good deal for appraisal?

[Zoe Mercier]

We bought a place for cash (got a great deal) and are trying to finance it to cash it out (we gave the approximate value that it should go for). It's our first time doing this. We do have a tenant. Process looks good with the lender, however they are asking us this:

o Did you make substantial improvements to the property and if so what were the improvements and do you have a builder contract or invoices to document cost? Reason why we are asking, is the appraiser will need to justify how value increased by $33.5k.

We did a few upgrade ourselves but nothing major that needed a contractor; mostly clean up, fixing fences, changing bathroom hardware, etc.  We just got a great deal. How we do justify this to the lender/appraiser? Anyone have a standard answer? 

Thanks!

[Eric Veronica]

@Zoe Mercier assuming you are getting a conventional mortgage the bank will order the appraisal. You are past the 6 month period so you should be good using the new value. 

If you have not done substantial upgrades then you will want to explain how or why you got such a good deal. The first thing an appraiser is going to do is look at public records and see the price that the home just sold for 7 months ago. An appraiser is not likely to a 20%-30% appreciation unless it can be justified.