My Egregious Appraisal Story

Sometimes the wildest real estate stories don’t come from buyers or sellers—they come from the people in between. In a recent episode of Selling Greenville, host Stan McCune opened up about one of his most unbelievable appraisal experiences yet (because nothing says “fun day in real estate” like arguing with a spreadsheet that thinks your property is worth less than a used minivan).

This wasn’t just a story about numbers—it was about persistence, fairness, and the patience it takes to navigate a system that doesn’t always play by its own rules.

My Appraisals Story: Lessons from an Egregious Appraisal Experience

Egregious Appraisal Story: The host began by admitting what many in the industry already know: appraisers and realtors have what you might call a love-tolerate relationship (some days it’s teamwork, other days it’s tug-of-war). Both sides depend on each other, yet accountability for appraisers remains limited—and when a bad appraisal hits, the fallout can derail weeks of work.

In this case, the host was refinancing two side-by-side duplexes—identical structures, same street corner, same layout, same tenants, even the same parking lot. On paper, it should have been straightforward. Two separate appraisals by two separate appraisers were required, one for each property. What could go wrong? (Cue ominous background music.)

The Setup: Cash-Out Refinance Reality Check

Before the drama unfolded, the host walked listeners through why he was even pursuing a cash-out refinance in the first place. He wasn’t looking to sell. The duplexes had been reliable performers since 2020, bringing in steady rent and minimal maintenance headaches.

A cash-out refinance, he explained, lets a property owner borrow up to roughly 75–80% of a home’s appraised value—effectively turning equity into liquidity. It’s a strategic way to access cash without selling, and the best part? The money isn’t taxed like income because it’s technically debt (the IRS may be ruthless, but even they know how to label a loan).

For him, that cash meant reinvesting in new opportunities while keeping the properties he’d already nurtured. The math made sense. The timing did too. All he needed now were two fair appraisals.

The First Appraisal: A Pleasant Surprise

When the first report came in at $275,000—far higher than expected—relief and disbelief hit at once. It was, in his words, “a once-in-a-lifetime high appraisal.” He’d budgeted mentally for around $215–225K per duplex, so $275K felt like hitting a real-estate jackpot (minus the confetti).

He knew luck played a role—appraisals often hinge on timing and nearby sales—but this one checked out. Recent comps supported it. The math worked. For a moment, things looked almost too smooth.

The Second Appraisal: A Gut Punch

Then came the second appraisal. Same property type, same block, same everything—except this time the value came in at $195,000. That’s an $80,000 difference between two twins sitting side by side.

It made no sense. Even with small variances, such a gap was statistically absurd (like identical twins having birthdays six months apart). Yet here it was—two official numbers, both from licensed professionals, claiming wildly different realities.

The lower value didn’t just bruise the ego; it directly affected the math. A lower valuation meant less money available to refinance—and ironically, even a slightly smaller loan amount bumped the interest rate bracket higher. Less cash, higher rate—the worst combo since “low-fat cheese.”

The Rebuttal Mission: How to Challenge an Appraisal (Without Losing Your Mind)

Determined not to let an arbitrary number sink the deal, the host worked with his lender to submit a rebuttal—essentially an appeal requesting the appraiser to reconsider. (Think of it as politely telling someone they’re wrong while hoping they don’t double down out of pride.)

He began comparing both appraisals side by side. The high appraisal used strong sold comps — real, closed sales that supported the higher value. The low appraisal? It used a mix of four sold comps and two unsold ones, which made no sense. Why reference properties that hadn’t even sold? It was like grading a test based on unfinished homework.

Digging deeper, he noticed the biggest red flag of all: the low appraisal ignored several relevant sales entirely, including one that sat right next to a comp it did use. It also failed to adjust for key differences like condition and upgrades.

Still, rebuttals are notoriously hard to win—unless you find something irrefutable.

The Floodplain Discovery

That “aha” moment came when he mapped out the low appraiser’s chosen comps. Two of the lowest-value properties were smack in the middle of floodplains—zones where flood insurance is mandatory and resale value takes a hit (because, as he joked, “nothing says cozy duplex like waterfront property you never asked for”).

His own duplexes weren’t in floodplains, and yet the appraiser had made zero value adjustments for that difference. It was an obvious oversight. When he cross-checked the flood maps and sent them to his loan officer, the rebuttal suddenly had solid ground—literally and figuratively.

The Outcome: A Partial Victory

Within days, the lender received an updated appraisal: $220,000. Still below the first property’s $275K, but far better than the insulting $195K. That correction unlocked better loan terms and put both properties into the ideal loan-to-value range.

The result wasn’t just more cash—it was validation. Sometimes persistence (and a little flood-map sleuthing) pays off.

And the irony? Had he sold those properties outright, the net cash after capital gains taxes would’ve been about the same as the refinance proceeds—except he’d no longer own the assets. This way, he kept the properties, kept the income, and still freed up funds to reinvest (talk about having your cake and refinancing it too).

Why Appraisal Accountability Matters

The story underscored a deeper point about how uneven the appraisal system can be. Two professionals can look at identical data and land $80,000 apart—and yet only one number dictates the outcome.

Appraisers hold enormous influence over both financing and fairness, but when they miss key factors, the burden falls on the homeowner to catch and correct them (like proofreading a test you didn’t take). The host’s experience served as a reminder that data isn’t always objective—it depends on who’s holding the pen.

As he put it, “Every once in a while, an observant realtor can help an unobservant appraiser do their job better.” (Translation: sometimes the squeaky wheel gets the accurate comp.)

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Bottom Line

Appraisers may be essential, but they’re not infallible. One overlooked detail—a floodplain here, a missing comp there—can shift tens of thousands of dollars. This egregious experience was a master class in persistence, proof, and the quiet power of paying attention.

For those navigating their own refinancing journeys, the lesson is simple: double-check everything, challenge what doesn’t make sense, and never underestimate the value of good documentation (or a well-timed flood map).

Ien Araneta

Journal & Podcast Editor | Selling Greenville