Discrepancy

[Dublin ohio]

The first appraisal my lender had done before purchase in May 2023 $345k. I purchased the property and rehabbed it. Now I am trying to refinance and the current appraisal was done Nov 2023 $250k.

Purchase price was $132k, rehab $90k.

$222K acquisition and rehab. $250K now. 12.5% return. Seems low even for an owner occupant rehab.

The most recent appraisal, the comps are not updated and finishes are not as nice

IMO. It appears that the first appraisal was substantially high. But if what you say is true about the comps on the second appraisal. The second appraisal is somewhat low unless the comps were adjusted upwards for condition.

 

[Fernando]

There's explanation for the discrepancies. We don't know all the details.

 

[sputnam]

What I am seeing is the location of the comps vary. The most recent appraisal, the comps are not updated and finishes are not as nice; plus it does not include any properties that are NW but that are in the same neighborhood. The previous appraisal did include that area.

It's very weird that anyone complains that the appraisal of their property is too high. Presumably, the appraisals you mentioned have one function. To help the Lender decide whether to approve your loan application and how much to lend you. They serve no other purpose.

 

[Tom D]

Purchase price was $132k, rehab $90k.

around here that cost would bring the subject around 300 maybe. but then i don't know the extent if it was a rehab, or remod, which can make a difference. typically, it should put the house to the top of the similar house price range in the area. but this is all speculation for me. i would go to a realtor and ask them to print out all the similar high price sales, and see if that tells you something. cheaper than an appraisal for some detective work.