Question: We are refinancing our home. I think the lender's appraisal of my home is too low. What can I do to show a higher value?

Answer: In general terms as "appraisal" can be seen as an independent estimate of value by someone not party or beneficiary of the transaction.

Values are determined by many factors -- age, condition, location, improvements, recent past sales, new zoning, etc. Appraisers look for values based on how much income a property will produce, how much a property will cost to replace, and comparable values. The last approach is routinely used for residential property.

Thus, the first step is to look at the appraiser's report and see how it was developed. Are comparables current and relevant? Are improvements included?

If still dissatisfied, contact the appraiser and ask (nicely) for a review of the appraisal. If that doesn't work, then speak with the loan underwriter and raise your concerns.