I bought a house from a family friend recently. It was sold a bit under market value, but, surprise surprise, the lender’s appraiser appraised it at exactly the purchase price (actually, his appraisal was $10 over the purchase price…).
I’d like to eventually get it refinanced. My lender basically said you’d have to prove improvements to get a higher appraisal if you request a refinance in the next year, which seems a bit odd b/c the last 10 homes sold in our neighborhood sold for at least $200k more despite being smaller, lower quality finishings, and fewer bedrooms/bathrooms.
My question is this: is there still this “burden of proof” if I try a different lender? I’m sure they’ll also reference the purchase price, but do they weigh market movements more than the initial lender’s appraisal?