The Gillgren Group

The ?thorough? second look was requested at 11:21am on Friday Aug 21st and we received response from the lender at 7:48am on the following Monday Aug 24th which revealed ?no material defect likely to affect property value.? Our lengthy response was sent to the provider on Wednesday Aug 26th and included several requests for supporting assumptions, market multipliers, and calculations which were never provided, let alone a follow-up response of any kind. The appraisal itself lasted 38 minutes. We took exceptions to three distinct valuations in particular. We have an adobe pdf portfolio available for review that contains (1) a graphical representation of homes sales in our neighborhood over the last two years along with where our valuation falls in that range, (2) our 3-page rebuttal letter to the provider explaining our position while raising questions about their calculations and assumptions, (3) the appraisal itself, and (4) the email exchange back and forth which documents the timeline and each party's general sentiments. In short the 3 exceptions we took to the appraisal results are: (1) of the 3 comparable (comp) homes, our home was 26%, or 426 sq ft larger than two of those. Our valuation however was awarded an upward adjustment of only $27,700 ($65/sq ft). (2) We purchased (rather than leased) a new solar PV system for $15,500 which was turned on by SDG&E 43 days prior to the appraisal. Conservatively assuming a useful life of 10 years this asset should be depreciated by 1.17% or $183. However, the Gillgren Group valued this asset at only $5,000 relative to the three comp homes that did not have a solar PV system. (3) Our property size is ~40% larger than two of the three comp homes and was valued at +$5,000. Granted property size may not carry as much weight as dwelling size, I asked for backup calculations to help me understand how these variations are valued and never received a response. Also of note: - The entire interior of our home was repainted from floor to ceiling in Aug 2013 - The flooring throughout the entire house was stripped and replaced with a combination of dark distressed hardwood, tile, and top of the line carpet padding and carpet in Oct 2013 - A solar PV system was purchased and installed in Jun 2015 - Custom baseboards and window trim installed after flooring was laid - New blinds installed Jul 2015 I mention these because although our kitchen and bathrooms have original cabinetry and appliances, the rest of the house is most likely much newer than all three of the comp sales. We have knowingly accepted a lower quality rating of C4 in the appraisal while all three of the other comp homes received an improved condition rating of C3. We were adjusted downward $25,000 compared to all three comp homes. We expected the valuation for the size of our house to far exceed the $27,700 we were upwardly adjusted to compensate for original cabinetry and appliances. I've also learned that I should have bought down my mortgage to remove PMI rather than spend $15,500 for an asset that loses 2/3 of its value almost immediately according to the Gillgren Group.

THE APPRAISER DID AN EXCELLENT JOB OF COMPARING OUR HOUSE WITH OTHER HOUSES IN THE NEIGHBORHOOD. HE EMPHASIZED THE STRENGTHS OF OUR HOUSE. HE WAS ON TIME AND PROVIDED HIS REPORT IN A TIMELY MANNER.