Lost HELOC increase due to appraisal and I want to dispute. Any advice?

Hello, I am new to this site and actually have alot of questions! But, I will start one by one. First, Let me acknowledge that I am a Realtor with limited hands on experience. I received my license in May of '06 and continually educate myself with the anticipation of my becoming a full-time rehabber/investor. I received an offer from my bank for an increase on my HELOC, so I felt that we (my team) were ready and I applied for the increase. I received a letter stating that I had been approved conditionally. We were waiting on the appraisal. OK, My original purchase in '04 was owner financing and the value was strictly in the land. One year later, I refinanced with a mortgage company. At that time we had made numerous improvements to the home, although it was still incomplete (the majority of the improvements were structural). The appraisal came in at 140,000, with the value still pretty much in the land. Since then, we have completed more inside the house, completely privacy fenced the property, and added alot of landscaping. This time the appraisal came in at 103,000. Does this sound reasonable to anyone? I have put thousands more into the place and she appraised almost 40,000 less. I understand the cooling market maybe affecting my value, but the last “vacant” lot in my neighborhood sold for 80,000, less than 6 months ago. I know that she had a hard time getting comps for two reasons (1. I have military north of me and a bay south of me and 2. I only have 1bd/1ba). I sort of feel that she did not give due diligence. Should I dispute this? Will it affect my property value in the future? And now that I can’t seem to get the increase, I have nothing to work with. I have an awesome team ready to start rehabbing and need a financial backer. Any advice or suggestions would be great!

All you can really do is try to get another appraisal done. Maybe the current appraiser was unfamiliar with your area.

I’d say your problem is that you are using a bank that needs an appraisal for a heloc. The big boys- chase, wamu, bank of a, generally do not need one to do a second and have their own method of determining value. As a realtor, you probably know a few loan officers, try and find one you trust and ask them to check out your scenario for a stand alone second for the amount you need. good luck

Right, you need to check with some loan officers that have a bunch of appraisers in their rolodex. Then they need to call them to do a comp check. The appraiser that “hits the number” then gets the appraiser job. (BTW some appraisers really hate that part and technically it may be illegal, but it’s done all the time because if they don’t hit the number, they won’t get called on any other job.)

Sometimes the bank you pick uses some sort of automatic valuation tool instead of a real appraiser that will take multiple factors into account. Those tools sometimes aren’t accurate, but they’re cheap, probably under $100 as opposed to a real one which could cost around $300.