How To Do An Appraisal Dispute or Appraisal Review

What is an appraisal dispute? When Can it be used? Today we cover how to get a higher evaluation & how to get a lower evaluation when the situation calls for it.

The appraisal is one of the most important factors dictating what you can sell your home for. Banks will generally only lend buyers enough money to buy a home priced near or above the appraised value, so there is usually not much wiggle room for you to set your price higher.

You are stuck pricing your home in line with the appraisal value – a sobering fact if you discover that the appraiser valued your home significantly less than you anticipated.

Fortunately, all hope is not lost. There are ways to challenge a low real estate appraisal. There is the possibility that you can eventually get a better appraisal value than you did originally, as long as you are willing to take the necessary steps.

In all likelihood, if you are reading this you probably put your home on the market, had an offer accepted, are now finding out from your real estate agent that your home did not appraise for the agreed upon sale price.

Given what I know about real estate transactions, there are probably a number of folks who are feeling frustrated including the buyers, sellers, real estate agents and mortgage brokers. No doubt everyone is probably ready to burn the real estate appraiser at the stake.

The buyer is also probably second guessing whether they paid too much for your home as well. These are frustrating and stressful times for sure. Nobody wants to see a low real estate appraisal come in on a property.

The following information will give you some ideas on what you can do to get an improved appraisal value, and the higher sale price that goes along with it. Disputing a low real estate appraisal is not fun but it’s a necessary evil if you want to get the agreed upon price for your home. You should first understand how the appraiser figures out the value of a home before challenging his or her appraisal.

Here is a quick summary of how an appraiser determines home values:

The sales prices of similar, recently sold properties in close proximity to the subject property in the last six months or less.
The average time it takes for homes to sell in the general neighborhood.
What are the price and value trends of homes in the neighborhood? Are values trending upward or downward?
What is the supply and demand of homes at the present time? Is there a shortage or glut of homes?
What are the properties condition and construction quality?
What is the square footage and gross living area of the home?
What traits does the home have including bedrooms, bathrooms, and any distinct features?
What major home improvements have been made since the date of purchase?
What is the lot size relative to other homes in the neighborhood or properties in the general area.
What is the zoning of the property?
Is the home unique in a good or bad way?
Does the home have any functional obsolescence?

(credit for description: Bill Gassett)

Luis Leiva is the CEO of Culture Estate, a lifestyle brand that caters to business minded Real Estate professionals. Luis is also a public speaker and trainer, he has trained and mentored Real Estate agents, entrepreneurs, and corporate clients. Luis also holds a NJ instructors License and has continuously spread his knowledge through this Youtube page and throughout Facebook, Instagram, and Twitter.

Luis’ Real Estate team deals with first time home buyers, investors, Corporate clients. On top of that we also specialize in Sheriff’s sales, Foreclosure, REO, Short Sales. We also have agents in house that handle Luxury, and celebrity clients.

Follow us on:

Facebook: facebook.com/Cultureluisleiva/
Instagram: instagram.com/Cultureluisleiva
Snapchat: snapchat.com/add/Cultureluisleiva
Website: cultureestate.com
Twitter: twitter.com/realestatebylou