Hello. We are in the process of doing a refinance and our appraisal just came back. It was much lower than expected and once I reviewed it there are items I can't reconcile. I got the lender as a recommendation from my neighbor who just refinanced, and their home appraised at 60K more than ours and ours is more updated than theirs - we have all new appliances, new hardwood floors, our basement is finished, and we have about 300 more sqft on first floor than them). Our home would not be considered over-improved for our area. So my questions: 1) one home that was used as a comp is on a busy street - we are on a cul de sac and all homes are noted as Nres. I pulled up our original appraisal when we bought our home, and a similar home on a busy street was used as a comp, and they put in a 58K positive adjustment. My neighbor let me look at their appraisal, and their appraiser used the same comp as our appraiser did this go around - they got a 49K positive adjustment. 2) Surprisingly our area is not plagued by short sales/forclosures. One of the other comps was a short sale/foreclosure and no credit was given and it is noted as an arms length transaction. It was sold almost a year ago, and there are closer more recent comps than this that I think should have been used. I called the realtor that we initially used and she thinks it sold for about 70K less since it was not well maintained and a bank sale. The appraisal itself notes that foreclosures are not a factor in our area. 3) All homes have a negative adjustment for market timing. The report states that he did a lookback, and is stating that the prices have further dropped 25% in the past few months. The realtor gave me the list of sales for the past 6 months, and here is where I am stumpped. There were three high end homes sold in Nov (845K-1.2mill) and then a sampling of other homes. Then in Jan and Feb there were no homes over 700K sold, but two homes for 60K and 80K( super tiny camp homes) . If I take out the extremities from both times, I come up with average prices increasing 6%. So it seems that by having the higher end homes sell in one period and then having the two low end homes sell in the next period it is really throwing off the %. Our area has a few small lakes/ponds and on one there are older camp homes and trailers - and the rest of the town are typical homes, with pockets of high end homes mixed in. It is a smaller town, so there are not hundreds of sales each month. The adjustments made to our home were in the range of a negative 20K-50K for market timing. So my question is shouldn't the extremities be taken into account when calculating the sales trend? The realtor said that the home prices are generally stable for 3 to 4 bedroom homes. Only the higher end homes over 4000K sq feet are starting to decrease since a more just came on the market and there are generally not as many buyers for those. The cost to build came up at 110K more than the appraised amount, and then it notes that the sales approach is the most reliable indicator. My gut told me that the appraiser is not from the area - I looked him up and he is from 30 miles away - but I realize that does not necessarily mean that he is not qualified to appraise here since I don't know the markets he deals with. The lender gave me a reconsideration of value form to fill out so any input you can provide would be appreciate.