Low Appraisal After Full Renovation – Panama City, FL

[Lawrence Barnes]

Hey everyone,

I purchased an investment property in Panama City, FL back in February and financed the purchase with a hard money loan. At that time, the lender's ARV appraisal came in at $240,000.

Since then, I’ve completed a full renovation, including:

• All new drywall
• Full rewire with new electrical box
• New appliances
• Brand new kitchen
• Two fully renovated bathrooms
• New flooring throughout

The roof and windows were already in good shape (both only 4 years old).

Now that renovations are complete, I ordered an appraisal for the refinance — and it came back at only $215,000, which is lower than the original ARV appraisal.

Here’s where I’m struggling:

• I pulled my own comps and found four properties nearby that closed at $244,000 and above.
• Some were newer builds, but they’re similar in size to my property.
• On top of that, my property sits on a lot that’s about 10,000 sq. ft. larger than those comps.

I’m looking for advice from those who have dealt with similar situations:

I appreciate any insights — I’m trying to make sure the value aligns more closely with the actual improvements made.

Thanks in advance!

[David Torres]

@Lawrence Barnes you can request a 2nd appraisal with a different appraiser at your own cost if you are doing a conventional loan.