Refinance Appraisal Issues · The MHP Pros Mastermind

Refinance Appraisal Issues

I just received a refinance appraisal on a park that came in essentially flat from the appraisal when we purchased it over a year ago, despite significant improvements to the property and increases in rental income.

Purchase appraisal: $1.22M

Current refinance appraisal: $1.25M

Since acquisition, we’ve improved the property and increased rents, including lot rents to $395 for TOH and $550 for RTO homes. Based on the improved operations and NOI, I expected to see considerably more value creation reflected in the new appraisal.

For anyone who has been in a similar situation:

Were you successful in challenging the appraisal or getting a second appraisal?
What was the most effective evidence to provide, better comps, corrected NOI, cap-rate support, rent roll, trailing financials, documented improvements, etc.?
Did you work primarily through the lender, directly with the appraiser, or request a formal reconsideration of value?
Were you able to materially increase the final value? If so, by roughly how much?
Any lessons on what actually moves the needle versus what appraisers tend to ignore?

I’m less interested in appraisal theory and more interested in hearing firsthand examples from operators who challenged a low MHP appraisal and actually got the value changed.

Thanks in advance for any insight

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Refinance Appraisal Issues