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Storkfarm, Other/Just Looking in Sims, NC

I am trying to refinance my house through the same bank. Just got appraisal back at one price but the bank underwriters dropped appraised value

Asked by Storkfarm, Sims, NC Thu Mar 31, 2011

Appriasal value was dropped by $500,000 by bank underwriters. Is there any recourse?

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Sometimes what happens is the Computerized AVM that grades the appraisal comes back with a lower number that is used instead of the appraisal. Here is some basic information on it:

AVMs which the banks are now using, are computer programs that grade & give an "appraisal" value by blindly generating an appraised value for a home with very faulty data. This computer "analysis" is based on multiple regression analysis with a large amount of the most pertinent variables, including your homes actual condition, its actual verified size, and your location removed from their equation. Only after AVMs find the appraised value do they begin searching to find what they consider likely comparables. Commonly the appraisals do not line up with the value of the appraised value is from the actual appraiser who inspected the home. The lower of the two is used which is usually the AVM that is computer generated.
Web Reference:
0 votes Thank Flag Link Thu Mar 31, 2011
Sounds like your only recourse is to fight the bank or try a different lender. When was the appraisal done? If it was more than a few months old it's pretty worthless and they will request a new one often. If they dropped the value, from a recent appraisal, by $500k then I would question that.
0 votes Thank Flag Link Thu Mar 31, 2011
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