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?
Please be advised that:
The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.
By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.
Before you even think about committing a real estate crime
click this red button.
"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."
© All Rights Reserved.
Department of Justice Legal Policies
Click "HERE" For Today's Question
David Saks Show
University of Memphis
Mr.Saks' participation in ActiveRain ended April 13, 2015.
His blog archives will remain online.
May God bless you.