That's a fair point, but expanding comps can sometimes backfire if the lender pushes back. Had a similar scenario with a property I developed last year—thought broader comps would help, but the lender argued they weren't comparable enough due to subtle neighborhood differences. Ended up wasting a good chunk of time and energy. Not saying it's always a bad idea, just weigh carefully how strict your lender tends to be about comps before diving into that route...
"Ended up wasting a good chunk of time and energy."
Been there myself. A couple years ago, I tried to drop PMI on my first place after putting in some sweat equity renovation. Thought I'd easily hit the 20% threshold, but the lender's appraiser nitpicked my comps like crazy—said the renovated homes around me were "too different" because of minor street traffic differences. Lesson learned: lenders can be surprisingly picky about what's considered "comparable," even when it seems obvious to us homeowners...
Totally agree, lenders and appraisers can be way more particular than you'd expect. A few things I've noticed from my own experience and conversations with others who've been through PMI removal:
- Appraisers often seem to have their own subjective criteria for comps. Even if you think your house is clearly similar to another, they'll find some minor detail—like street noise, lot shape, or even proximity to a busy intersection—to justify excluding it. It's frustrating because the guidelines aren't always clear-cut or consistent.
- Another thing that surprised me was how conservative lenders can be about valuation increases due to renovations. You might spend thousands on upgrades thinking it'll boost your home's value significantly, but the appraisal may only recognize a fraction of that investment. They seem especially skeptical of cosmetic improvements like flooring or paint, even though those can genuinely affect market appeal.
- One tip I've learned: if you're planning to request PMI removal based on home improvements, document everything meticulously. Before-and-after photos, receipts, contractor invoices—having solid proof helps build a stronger case for the appraiser. Doesn't guarantee they'll agree with your assessment, but at least it gives you some leverage.
- Also, timing matters more than you'd think. If the local market is hot and prices are climbing steadily, waiting a few extra months could make a big difference in your appraisal outcome. Conversely, if things are cooling off, you might want to move quicker before comps start trending downward.
Bottom line: ditching PMI isn't always straightforward or fair...but understanding how lenders think and preparing accordingly can save you some headaches down the road.
You're spot on about documenting renovations—I've seen it make a real difference. One client of mine had their appraisal jump significantly just by providing detailed before-and-after pics and receipts. Doesn't always work, but definitely worth the effort.
I've gotta say, documenting renovations is helpful, sure... but honestly, sometimes appraisers just don't care as much as we think they do. I once spent an entire weekend meticulously organizing before-and-after photos, receipts, paint swatches—heck, I practically made a scrapbook. Appraiser barely glanced at it. Instead, he spent more time chatting about the neighbor's new fence. Go figure. So yeah, it's worth a shot, but don't bank on it being your golden ticket out of mortgage insurance jail.
