Depends on what you mean with ranch. If it is all one level then the 1.5 story might still be valid, but if it is a split ranch as in it has stairs then the 1.5 story isn't a match since split ranches or raised ranches tends to sell for less.

Edited to add: The comps in the bad school district wouldn't be good comps without adjustments. School district matters a lot for selling prices too when it is a family neighborhood.

I had posted previously with having issues with adjustments made on a prior appraisal now that a couple more sales are coming through I want to better understand what might be used to decide whether I should get another appraisal to close out a lower level finish.

Appraiser refused to make any type of adjustment for school districts even when presented with the data

By a ranch I mean all the living spaces on one level.

The 1.5 story house the majority of the living space is on the main level for example three bedrooms three baths but then they have the bonus room above the garage and then a loft with a fourth bedroom upstair.

Bank said they would use this as a comp if they couldn’t find enough ranches within a certain distance but I would think if there is a 1.5 story in my subdivision, in the same school district and built the same year (2017) would trump a ranch that is 5 miles away in a different school district and 10 years older.

When an appraiser finds comparable sales, s/he will choose the best sales that are the most similar to the subject property usually within the neighborhood if such sales are available. There usually has to be an adjustment to the comparable sale for features it may or may not have in order to value the subject property. I have found that in rural areas, the 'neighborhood' is generally much larger than a suburban type neighborhood which allows the appraiser to go longer distances to find credible comps.

As to schools: if the market shows a reaction to the school district then it should show up in the appraisal. If there is no reaction from the market, then it won't show up. Reaction equals price and DOM. These are just my observations.

Appraisers vary in their expertise.

It sounds like you need additional funds to complete your refinance. Is that so? Or do I have it wrong? I think I referred you to a very good website - the forum section - where appraisers discuss all types of appraisal issues and approaches. If I haven't, it's called AppraisersForum.com and there is a section for the public to ask any question of the appraisers in the forum. It gives great insight into the challenges appraiser face with each appraisal.

Concur with homechef about school districts. The appraisal process doesn't adjust for school districts. Too subjective. Adjustments for physical aspects of house.

I'd agree that the sale of the house should be indicative of its relative value in the area and district its in.

However my issue is that a generic square foot adjustment is used and is not indicative of the selling price per square foot difference between the two schoold districts. The houses sold in my school district have a lower DOM and higher price per square foot therefore I'm negatively impacted if smaller houses outside my school district are selected.

I'm in a construction loan and will need to refi into a new loan. I can use the appraisal from the consturction loan but it puts me in a low PMI bracket and I don't want any PMI. There is a slight risk in that a new appraisal could be even lower further creating an equity issue.

However the 1.5 story home in my subdivision just recieved an offer that is close to $100K more than my appraisal. IF this would be used as a comp it would have a SIGNIFICANT impact on a new appraisla hence the question as to whether it woudl be used.

Homechef, based on your approach you're saying you would not select this 1.5 story home as a priority since my home is a ranch. You would go outside the neighborhood into a different schoold district to select another ranch. Is that correct?

The 1.5 story home wouldn’t be used until it’s a closed sale. The offer means nothing until the house is sold.

Yes sorry, it would close before I need to refi as my project wiill not wrap up for another few months.

"Homechef, based on your approach you're saying you would not select this 1.5 story home as a priority since my home is a ranch. You would go outside the neighborhood into a different school district to select another ranch. Is that correct?"

Maybe. How's that for an answer? It would depend on a number of factors. What is the condition of the 1.5? How old is it? When was it renovated last? There are a series of questions that I would need to answer before I decided to use it as a comp. There may be a ranch in the neighborhood that is a more suitable comp. I would not ignore the 1.5. I would note it presence. But, under some circumstances it would not be one of my primary comps.

So, the answer is, it depends. Sorry I can't be more specific.

Because your home is new, custom construction and an infill project, it's a very complicated assignment. It's the type of assignment that I want extra time to think about in order to do a good job for you. Lots of factors to consider.

My ranch and the 1.5 story up the road where built the same year (2017) with comparable semi custom quality.

Logic tells me the ranch used in my previous appraisal that is 3 miles away in a poor school disctrict and built in 2005 shouldn't be used over the one above.

But I have no idea!

To put school districts in perspective

My subdivision = in the top 10 in the state

2 comps from prior appraisal = falls just within top 40

1 comp from prior appraisal = not even in the top 100 districts in the state