In My Neighborhood in 63303>Question Details

BRW, Other/Just Looking in 63303

We are wanting to refinance w/cash out. Bank sent out appraiser who had nothing but nice things to report about our house, but used two low selling

Asked by BRW, 63303 Mon Oct 5, 2009

homes as comps in neighborhood, resulting in an unrealistic low appraisal, which even can in lower than the county assessor (go figure). Bank now doesn't want to work with us on refi to our liking. What do we do now? How do we get a better value? Do we ask for a 2nd appraisal? Get our own? or just walk away from this bank & try another bank?

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Is there a comparable in that neighborhood? To check on this you should contact
an Agent who specialize in that area to campare what the appraisal report and
the Comparabale given by your Broker/Agent. I know the bank are trying to do the
best as they can right now.
0 votes Thank Flag Link Mon Oct 5, 2009
Are there two different, recent sales in your subdivision that the appraiser could have used for higher comparables? They will be looking for sales within the last 6 months that are comparable in style and square footage to yours. If not, your next appraisal may be very close to this appraisal.

There are new regulations that limits the communication that a lender can have with an appraiser. Talk with your loan officer to see if they have any recommendations for you.
0 votes Thank Flag Link Mon Oct 5, 2009
Cheryl brings up a very good point regarding the type of loan you are applying for.

Depending on the area you are in, there may be limited comps to choose from. However, it sounds like you are saying that is not the case - that there were better comps that the appraiser did not use.

Before spending money on another appraisal, I would ask to visit with your original appraiser. If you have specific properties in mind that you feel are a better fit with your home, I would ask him/her to explain why they were not used.

If the appraiser cannot give you a satisfactory answer, then by all means, ask for another appraisal. But, they may be able to shed some light on the market that you have not thought of. This could save you time, money and more aggravation.
0 votes Thank Flag Link Mon Oct 5, 2009
Have you done research on comparable homes in your area that sold in your area during the last 3 to six months? If not, check out recent (last 3-6 months) sales that you know about in your area at your County Assessor's/Auditor's Web Site, to see if there are better comparable sales than the appraiser used. Sometimes the only comparables available in the last 3-6 months are the ones an appraiser uses. That could pull the value of your home down lower than you think it should be. That has been happening to borrowers all over the country in the market we have been in. (Although, in NE OH where I am, the market appears to be stabilizing.)

You may want to do the homework on comparable home values before you apply with another lender, as having too many credit inquires can have some effect on your credit score. I'm not affiliated with a lender - - I'm just making a suggestion that you think your situation through. You could contact another lender to let them know you may be shopping around for loan terms, rates, etc., & ask what effect multiple credit inquiries might have on a borrower's credit score.
0 votes Thank Flag Link Mon Oct 5, 2009
As long as it was not a government (FHA) appraisal your ok. FHA appraisals stay with a home for 6 months.
You can switch banks and start all over!
Web Reference:
0 votes Thank Flag Link Mon Oct 5, 2009
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