Real Estate Advice: Low Appraisal for Refinancing

You can always try again. It’s just going to cost you each time you have to order an appraisal. When an appraiser is assigned you should make sure that this appraiser is familiar with the area. if the appraiser is from out-of-the-area, then you can request a different appraiser. Also, you should pull comps that you can give to the appraiser to help them do their job. You can probably ask your real estate agent to do this for you. I have clients who call me all the time for this assistance.
But keep in mind, appraisals for re-fi’s typcially come in lower than appraisals for purchases. One main reason is that when it’s a purchase the appraiser knows the purchase price and they just have to confirm if the price is above, below or at market value. When it’s a re-fi, the appraiser is not using any number to compare against. They have to come up with a number just based on the research they pull, and they are usually more conservative. For instance, I had clients who tried to re-fi their home. The appraisal came in at $1,100,000. But when we put their home on the market a few months later, I got it appraised at $1,335,000 (the selling price)..

How Long Does it Take Banks to Respond to an Offer?

When it comes to REOs (or bank owned properties) the banks are much speedier than when responding in a short sale. The reason being, the bank is the actual seller in this situation and they have set the price themselves. REOs work much like standard sales with more normal timeframes. With that being said, it may take a little longer to hear a response only because you are dealing with bank employees with 9-5 hours. But it shouldn’t take more than a week or two at worst case scenario. Usually they respond relatively quickly. The one thing to keep in mind is that sometimes banks respond verbally. They don’t sign any paperwork until all terms are agreed on and at the very end the bank rep puts ink to paper. Although it’s not the bbest case scenario, you don’t really have a choice and have to move forward in good faith during negotiations. Also, the bank will usually add all their own boiler plate addedums for you to sign. They will not negotiate on these points. Pay extra special attention to these addendums because they quite often change timeframes and other terms in the contract.