Low Appraisal After Full Renovation

Accountant · TN · Member since 2025 · 146 posts · 92 votes

You may be able to reach out to your lender and request a reconsideration of value, and provide sales data you want the appraiser to consider. See how far that gets you, and then there may be other options, though perhaps more inconvenient.

Perhaps transferring to a different lender or you could hire your own appraiser either to review the first appraisal and/or provide you with your own appraisal. However, the lender is not required nor may they be able to accept that appraisal from the appraiser you engaged.

But I would first try the reconsideration of value route with your current lender.

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Jennie Ballard

Member since 2025 · 40 posts · 13 votes

1y

The all new electrical is a big improvement that is hidden in walls and maybe missed. To follow previous posters comment, I would send letter detailing the improvements with your final electrical inspection passing certificate along with your comps when requesting re-evaluation.

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Lawrence Barnes

OP

Member since 2018 · 16 posts · 1 vote

1y

Thank you guys for the response I did submit a reconsideration I'm just waiting to get it back prior to the appraisal being done I reached out to the appraiser and email them the cops that I found along with the details and receipts for the work I did on the property which I thought they would have taken to consideration the first time. I may end up moving to another lender if this can't get resolved because it's a $25,000 difference which is significant especially giving my budget thanks so much guys

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David Torres

Member since 2019 · 16 posts · 6 votes

1y

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

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Michael Hernandez

Real Estate Broker · Antioch, Ca. 94509 · Member since 2025 · 149 posts · 21 votes

1y

@Lawrence Barnes, this happens more often than people realize. An ARV appraisal at purchase is more of a projection, while the refinance appraisal is conservative by design. If you truly have solid comps above $240k and a larger lot, you can challenge the appraisal—submit those sales with a grid showing adjustments for age, lot size, and condition. Sometimes that's enough to get a review or reconsideration.

If that doesn’t move the needle, you can also order a second appraisal through a different lender. Appraisers vary, and a fresh set of eyes may give you the valuation support you need. In the meantime, double-check you’re pulling comps that match your property type as closely as possible, since newer builds often appraise differently.

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James JonesPro Member

Investor · Collierville, TN 38017 · Member since 2017 · 788 posts · 591 votes

1y

Appraisals can definitely be frustrating, especially when you’ve done a full renovation. A few things to keep in mind:

Appraisers weigh comps more heavily than upgrades. A new kitchen, baths, etc. make it more marketable, but if the comps they chose were lower, it drags your value down.
Comp selection matters. If they used newer builds as comps, they may have adjusted downward for age even if your house is fully renovated. You can challenge the appraisal and submit your own comps (especially highlighting the lot size difference).
Timing matters. If your appraisal was ordered during a slower sales period, that can skew results too.
Second appraisal. Some lenders will allow you to dispute or order a second one, especially if you can prove strong recent sales nearby at $244K+.

I’d push back with your comps and emphasize the larger lot + full renovation. Sometimes it takes persistence, but you want the value to reflect what’s really there.

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Bridget BrickBusiness Member

Lender · Direct-to-Wholesale DSCR Loans | BRRRR & No-Seasoning Refi | 46 States · Member since 2025 · 53 posts · 11 votes

1y

Lawrence, having the right wholesale lender and appraiser in this scenario is key! To prevent low values in the refinance process, we are able to get your preferred appraiser signed up to our AMC panel. This way when your appraisal job gets sent out for bid, your preferred appraiser sees it and can bid on it.

Getting the right value is the difference between being stuck in a high-interest bridge loan and cashing out to a normal rate with tax-free cash leftover for the next deal.

Feel free to connect so we can take a look at your deal summary and send over a rate.

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Erik EstradaBusiness Member

Lender · Member since 2022 · 6k+ posts · 1k+ votes

1y

Quote from @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!

Which AMC was the report completed by?

I highly doubt the ROV will work. But it does not hurt to try. It may be best to try out a different lender and order a new appraisal, however you run the risk of the property not appraising or appraising even lower.

If this is a cash out, there are lenders that allow up to 80% LTV on a cash out refinance. You might want to consider that as an alternative.

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Low Appraisal After Full Renovation – Panama City, FL

Low Appraisal After Full Renovation – Panama City, FL

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