The appraisal is the property of the refinance company. If she wants to continue to use this company, she will have to accept the appraisal unless she is able to provide a valid reason that the appraisal is deficient in some significant way.

No, the appraisal is not public record. Only the lender and the person applying for a new loan can access it.

She can go to another loan company and pay for another appraisal hoping that the new appraisal will include additional comparable properties that support a higher valuation.

Or, she can reduce the loan amount in order to match the valuation of the original appraisal. That depends on the percentage of loan to value she is desiring. The mortgage broker or loan officer can help her with this possibility.

Last, she can wait six months and repeat the process. By that time, the comparable properties will have changed and the market may have improved.

Not knowing where your friend is located there may not be any real estate appraisers that are local to her. 50 miles with today's trained appraisers means nothing as many use satellite pictures and county records among other things to compute the current appraised value. I would follow homechef's suggestions.

If she knows a realtor and the realtor could get her examples of properties that have CLOSED that are very similar to her property. They could provide the lender with those CLOSED comparable sales that might support an increase. The appraiser would then review them to see if they are similar enough to justify an increase.

Thanks for your responses. Unfortunately, there are no very similar properties, so the appraiser used what comps she could. But the appraiser didn't seem to realize the market here is very active and prices are climbing for houses within walking distance of downtown. Four of the five comps were within the city, and each had sold 20 percent higher than the city appraised them for tax purposes in 2016. But using the appraiser's numbers, my friend's house only appreciated 10 percent above the city-appraised number.

It's a lost cause, I realize, but certainly a warning in case I ever need an appraisal.

Evaluations for tax purposes are not a consideration in determining an appraisal. If that is what has your friend upset, they have been really misinformed.

I realize that, Sushipup. But the consistency of having all four of those properties selling for 20 percent over the 2016 valuation speaks to 1) the accuracy of the tax assessment value and 2) the rise in home values throughout the city. (The actual amounts were 20.70%, 21.30%, 21.30% and 23.10% - coincidence, I don't think so.)

Our city is small, and they have their finger on the pulse of the real estate market. I installed a new gas fireplace and they immediately raised my assessment by $5K.

Only a question but how frequently does your state/county reassess? Ours will now be reassessed yearly.

I have seen a drop in my location on the asking prices of houses since early this year. Fewer are selling quickly.

Maifleur, there were assessments in 2016 and they announced the other day that we would see assessors walking around the city, so I am guessing they will reassess in 2020. Houses under $500,000 are snapped up quickly, many selling without even formally going on the market. There is a trend of real estate agents putting out "Coming Soon" signs in front of houses. I wonder what that is about.

Sushipup, by mentioning the rise in my assessed value, my point is only that the city is on top of things.

Government appraisals are done using mass appraisal standards. These are very different from the types of tools used by the residential property appraiser. Trying to compare the two methods is comparing apples to oranges. It just won't work.

If you are in an area that is experiencing a fast moving market, there is a lag to valuation. It's minor, but it does exist. The fact that your friend's appraisal used five comparable properties tells me that the appraiser did their job. They were only required to use three. There are a variety of reasons why the appraiser needed or chose to use two additional comparable properties. The appraiser had a reason and it's noted somewhere in the report. The other two properties were used to support the final valuation in some way.

Yes, the city is on top of things. They are on top of maximizing their tax revenues.

Also the appraisal is what it is at this point but remember while your friend may be trying to maximize the price the bank will want a more conservative value. But either way I think most of your answers are above. Neither your friend or the bank can select the appraiser used.

Ask your friend to look carefully at the appraisal document that the person gave her. Ours had many errors on it, such as :

- listed square footage almost 800 less than we have

- listed 4 bedrooms; we have 5

- listed 3 full bathrooms and 1 half-bath; we have 5 full baths, no half at all

- listed a 2-car garage; it's a 3-car

- listed a smaller amount of land

- left off the pool and dock

- left off that the house is on a lake

The person either made bad notes or mixed our house up with someone elses. I had it corrected by calling the assessment company and having them re-do it.

AJCN's example is a good example of an appraisal that should be flagged. Major items were incorrect and could have affected the result.

There are appraisals that use a limited form, it called a drive-by. They are less expensive and no visit of the subject is necessary. Lenders decide which type to order. It's not up to the appraiser to decide. I've seen a lot of errors on these. Personally, I didn't like doing them because the possibility of error was so high.

Unless someone is taking out the maximum possible amount on a refi, the appraisal doesn't matter as long as it is high enough to allow the refi amount desired. I recently had a home appraised for a refi and felt the appraised value was low. But I was only borrowing less than half of the low appraisal value so it was no issue. If it was for a sale I would have fought it and tried to get another appraisal! The mortgage officer said refi's often come in low since the appraiser doesn't have the sale price to try to match so they tend to be conservative.

Very interesting. I'm trying to refi and tried 2 banks, both appraised my place for 20% less than recent comps. Must be the the bank's way of getting more fees. And I'm asking for less than 75% for the loan.

Bank doesn’t get more fees but they are more conservative on cash out refits than they were in the past for very good reasons.

Many banks do not keep the loans in house but sell them. With the lower interest rates banks are uncomfortable lending right now.