A low appraisal can put a stop sign in front of your plans to sell and move on. However, according to the mortgage lending experts at Texas Lending, there are a number of factors the appraiser takes into account, meaning there is a chance his numbers could be off. Read on for more information on how to dispute an unexpected dollar value.
Q: My appraisal is much less than I expected. Can I file an appeal with my lender?
Texas Lending: Yes! You will first need to go over every aspect of the appraisal and highlight the areas where you don’t agree. It isn’t always easy, but your lender has the option to change their valuation if you put forth a convincing enough argument.
Q: How do foreclosed and short sale properties affect the value of my home?
Texas Lending: A short sale or foreclosed property may be similar in features and appearance to yours. However, in these cases, they are sold under extenuating circumstances, often for far less than what they would be otherwise. If the appraiser uses these properties, it can negatively affect your investment. If you feel the appraiser has used one of these homes in error or that the actual square foot value has become outdated, talk to your bank and ask about updating the appraisal.
Q: Can I point out upgrades to my property to the appraiser?
Texas Lending: Yes, but don’t be pushy! You’re appraiser’s job is to determine the value of your property. Keep in mind, however, that he or she may miss subtle details that add value to your home. Do you have a water filtration system? Is there hidden storage in the closet? These little things can add thousands of dollars to the final figures.
Q: Should I get my real estate agent involved?
Texas Lending: Absolutely. Your realtor is a professional and may already have a working relationship with the appraiser. Make sure your agent has plenty of comparable listings on hand and has enough information to justify an increased estimate.
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