Low Value : High Blood Pressure ?
Most appraisers try to be as objective as possible when arriving at a conclusion that sets the value for the property.
This is what we all refer to as the appraiser's opinion of value.
If a low appraisal ticks your client off and you think that the appraiser screwed up and made a boo-boo can you appeal his or her decision?
There's a doggone good chance that with the proper documentation you can get that appraisal increased, and maybe even to the figure that the buyer and seller originally settled on.
Time is an important thing to deal with here, because the sooner your seller or buyer balks on the low appraisal, and the sooner you act on it, the better.
As soon as the property has been inspected get in touch with the underwriter or the buyers loan officer to contact you with the results of the appraisal as soon as it's in their hands.
Don't ask the appraiser for the data !
The appraiser has a fiduciary relationship with the lender and can't give you that information without the lender's permission.
Hoo-boy, don't do it !
If that appraisal comes in low try to get this information from the lender if you want to fight it:
1. The final estimate of value.
2. The sales comparison method value.
3. Addresses of three of the comparables that the appraiser used.
It's important that you get this information because the sales comparison method is the core of a residential appraisal.
This is what the lender relies on before they approve the loan.
Check out the appraiser's three comparables and check it against your CMA.
By making this comparison you can decide if a request for a reconsideration of value is reasonable.
Without three comparables supporting your request that a higher value estimate is in order, it could be tough to convince the lender on the basis of what your telling them.
You have to persuade the lender that your comparables are at least similar to the subject properties of the appraisers !
It's known that appraisers don't always use the best informstion available, and when this happens their results might be successfully challenged.
Insure that your request for reconsideration is well researched, documented, and presented like a pro.
What other things can you do to challenge the appraisal?
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