Hi Mike,

I understand your concern, as it's the same as a huge number of people in certain markets. You definitely have the right to a 2nd opinion, but your best bet is to have another professional look at it (as noted in other answers - have a lender, mortgage broker, or realtor take a glance at the appraisal. I also take it that the lower value stopped the refinance? Give me a call to discuss further. I don't mind analyzing the appraisal and seeing what options I may be able to offer. I'm fully confident that we have some of the best rates & programs around.

Thanks!

What a home in your neighborhood is for sale for and what a home SOLD for are two different things. An appraiser uses SOLD homes not for sale homes for their comps. You certainly have ever right to pay for a second opinion but your market may not support the higher value you are looking for. Carefully look through the appraisal and see if they missed anything about your house that might increase the value. If you see something that was missed for example a fireplace or a legal bedroom then contact the appraiser or your lender to talk about the issues.

One other factor that could effect your appraisal is the foreclosure rate in your neighborhood. If you are in an area with over 10% of the homes in foreclosure you could be hit with a declining market flag. This flag could cause your value to be lower as the banks see the area as a higher risk. Tallk to your lender to get the answers to your questions. They can fill you in on the details for your area.

Mike,

While I can't speak to your specific value, you should definitely call a couple of local real estate offices and have a couple agents put together a CMA for you. Be up front with the agents that you are trying to refinance your house, but that you are looking for a trusted professional in the real estate industry.

What you are facing is common. Most sellers/owners feel that there house is worth more than an appraisal tells them that it is. Afterall, we live there and have cared for and in some cases built these homes. We know the area, and all the great things about the house, but unfortunately it is a biased perspective. I am not saying that your house isn't worth what you think, but rather that I find it common for owners to think that there house is worth more than it is.

Another thing to keep in mind is that the asking price of other homes in the neighborhood is fairly imaterial to the actual value of your home. In the case of my personal residence, the home on either side of mine would sell for between 50-100% more than I could get for my home. That just happens some time. You want to pay attention to the SOLD price of other SIMILAR homes in your area in determining the value of your house. I hope that helps.

Cameron Piper