Help with my appraisal dispute

[savageinvestor]

Hi everyone. I’m buying a luxury property to remodel and the appraisal just came back a little lower than expected.
House is 8630 sqft according to the county assessor and all listings. It is built on a hill and technically 3 stories and has an indoor pool, hot tub, and full size sauna. It is in a very wealthy neighborhood and school district. The nearby comps with the same sqft, finishing and amenities sold for well over what mine appraised at. The appraiser has a copy of my rehab budget submitted to the bank and the scope of work.

The scope of work does not reflect improvements that will be done out of pocket as I’m a builder as well and have skit of leftover material I can use to make modifications without it needing financed by the bank.

Can I add those details in my dispute?

Here’s a couple of my concerns. The appraisal shows opinion of site value
Dwelling 6353 sqft @ $208
Basement 1694 sqft @ $40.67
Garages 1745 sqft @ $61.57

The “basement” is the lower level that is fully finished with a media room, spare room, bar, fireplace and half bath. It has windows to the outside at normal heights and has a back door that walks out to the back patio/yard.

The garage appraised higher than that living space.

One of the comps they used is from over a year and a half ago.

I’m also only seeing 8004 sqft appraised and no notes about the pool. Why am I missing 630 sqft?

I’ve attached the appraisal, the nearby comps and the listing for the subject property. I’m only looking to add about $150k to the appraisal through my dispute.

Thank you all so much in advance. I’m trying to get this email sent back tonight so the appraiser can get started ASAP.

7455 S Sleepy Hollow Dr, Tulsa, OK 74136 | Zillow

This 8627 square feet Single Family home has 5 bedrooms and 7 bathrooms. It is located at 7455 S Sleepy Hollow Dr, Tulsa, OK.

www.zillow.com

 

[glenn walker]

Deleted.

 

[savageinvestor]

Yes I’m using a hard money lender. My lender wants to see the purchase price and rehab budget at 70% ARV or below for 100% financing. We’re about 150k low. There’s no room for the seller to lower the selling price.

 

[Zoe]

Ask for ROV or second appraisal from your lender. Most of us don't know the subject market or your property.

 

[Trihard]

Hi everyone. I’m buying a luxury property to remodel and the appraisal just came back a little lower than expected.
House is 8630 sqft according to the county assessor and all listings. It is built on a hill and technically 3 stories and has an indoor pool, hot tub, and full size sauna. It is in a very wealthy neighborhood and school district. The nearby comps with the same sqft, finishing and amenities sold for well over what mine appraised at. The appraiser has a copy of my rehab budget submitted to the bank and the scope of work.

The scope of work does not reflect improvements that will be done out of pocket as I’m a builder as well and have skit of leftover material I can use to make modifications without it needing financed by the bank.

Can I add those details in my dispute?

Here’s a couple of my concerns. The appraisal shows opinion of site value
Dwelling 6353 sqft @ $208
Basement 1694 sqft @ $40.67
Garages 1745 sqft @ $61.57

The “basement” is the lower level that is fully finished with a media room, spare room, bar, fireplace and half bath. It has windows to the outside at normal heights and has a back door that walks out to the back patio/yard.

The garage appraised higher than that living space.

One of the comps they used is from over a year and a half ago.

I’m also only seeing 8004 sqft appraised and no notes about the pool. Why am I missing 630 sqft?

I’ve attached the appraisal, the nearby comps and the listing for the subject property. I’m only looking to add about $150k to the appraisal through my dispute.

Thank you all so much in advance. I’m trying to get this email sent back tonight so the appraiser can get started ASAP.

7455 S Sleepy Hollow Dr, Tulsa, OK 74136 | Zillow

This 8627 square feet Single Family home has 5 bedrooms and 7 bathrooms. It is located at 7455 S Sleepy Hollow Dr, Tulsa, OK.

www.zillow.com

Sales comparison approach is used on a form 1004 to value the property. Not sure why you have questions about the cost approach. Also, I'm not sure why you put basement in quotes as it clearly is in the basement based on the photos. Appraisers separate the basement and above grade square footage. The pool/sauna room is on the sales grid and it appears to be bracketed by the comps. The pool room was probably subtracted from the square footage because the appraiser didn't want to double dip the adjustment. The garage appraised higher, what do you mean by that? This is a complex assignment, if you have nothing else to use your gonna use older comps. Also, the adjusted value range is around 50k between all the comps, which is a tight spread for properties of that price. And its not the purpose of the appraisal to hit value just because you need it.

 

[Zoe]

Let me make it more clearer. Any questions you have along this line need to go through your lender.

The lender is the client of the appraiser. The lender will address your problems with the current appraiser on reconsideration of value or order a 2nd appraisal from another appraiser.

 

[Joe Flacco]

From what I have seen in appraisals, cost manuals significantly undervalue basement space. $40 per SF is like what it costs to finish an unfinished basement with basic finishes. Seems to be a common complaint of borrowers. There was someone on reddit just a couple days ago asking about the same thing.

 

[Zoe]

I do have a a question just out of curiosity. Your buying this property and appraisal came in lower than purchase price. Have you already closed on the house and already have copy of appraisal or do you have copy of appraisal before the transaction (sale) was closed?

 

[Terrel L. Shields]

Appraised as is or "as proposed"? I work the NE OK area. Assuming a finished basement, perhaps it is low, maybe not. I can readily say that the issue I see is the AGE. It was built in 1977. So, costs seem to be in line with what I have got for Grand Lake houses. Without actually valuing the property myself, I'd be reluctant to contest the appraisers opinion.

 

[Zoe]

Makes a big difference if appraisal was done "as is" vs "any proposed improvements".