FWIW, I have found that the appraisal process is just as bad now as it was during the Bubble Years, although often in the opposite direction.
I’m very familiar with a condo building where the top floor is very unique (view, higher ceilings, terrace, storage space, etc.) in comparison with the lower floors and the rents reflect the differences. On per square foot basis, the top floors rent at about a 20%-25% premium to the lower floors, which is what you’d expect given the differences. But… since only the lower floors were selling first (most in foreclosure), once the top floor units started to creep into the mix, the appraisers made no adjustments whatsoever – they just applied the same price per square foot to the top floor. Now, I think that if a new owner wanted to point out these differences to an appraiser (that is, essentially do the appraisal for the appraiser) where a re-fi was concerned, the appraiser would likely meet your number if you presented your “suggestions” (that is, “help”) in a nice way (and assuming, of course, that they actually make sense). That is, on the one hand you want to explain to the appraiser what the salient issues are and how they should be viewed; on the other hand, you don’t want to suggest, “You don’t know how to do your job.” Clearly, that’s a fine line.
I wouldn’t be afraid to get a touch “involved” – for lack of a better word – in the appraisal process. Just be careful about how you go about it. While most appraisals continue to be too high, I’ve seen some pretty silly ones on the low side as well as a result of pure laziness.
