Is this for a primary home or a secondary/vacation home?

Gingabug,

I'm sorry to hear your story, although it is a very common one. The fact is that home prices have continually decreased and therefore have brought down the value of homes even if they aren't for sale. Some lenders will allow you to have more than one appraisal. I went through this about six months ago and we were able to get a second appraisal - we had to pay for it however - and the bank also allowed me to submit a market analysis.

Along with that, I had my clients take pictures of all of their updates and attach the receipts of those updates. We sent that along with a detailed letter of the updates and the second appraisal came in just high enough to allow my clients to refinance.

Keep in mind that appraisals are not an exact science. They are a calculated opinion. I would pursue your lender one more time.

At the worst end, you should take that appraisal to your municipality and apply for a tax reduction based on that new appraisal. I have clients who have been successful at getting their property taxes reduced.

Hope this helps.

Linda

You need to determine the current market value of your home so you can decide how to proceed. If you are in an area where values are declining you may in fact owe more for your home than it is worth. A good local agent can help you by looking at the comparable sales used by the appraiser to make sure they are comparable in condition, location and size. If you think the appraiser is using incorrect comps then call him and ask him to look at ones you think are more comparable. Good luck!