Dealing With Low Appraisals
Posted June 30th, 2017
One of the largest concerns regarding appraisals is what to do when you receive an unexpectedly low appraisal. The entire appraisal process can be confusing and even affect the buying & selling aspect. If you suspect your listing has gotten a low appraisal, there are several things you can do.
Speak to the appraiser
Many people believe you should not speak to an appraiser. Though they each have their own reasons, this isn’t true. If you have relevant information that can help an appraiser during the appraising process, you need to speak with them. If you have any questions, you can ask them. However, depending on the situation they may not be able to give you an answer until later on. Even after the appraisal, a good appraiser is willing to go over their findings and comps with you. This does not mean that you can persuade or try to influence an appraiser during an appraisal, though. Appraisers are meant to be third-party affiliates to protect both your investments and the lenders.
Speak to the lender
If you have spoken to the appraiser after getting a low appraiser and believe there is still something wrong or unsatisfactory, you can let the lender know. If they look into the problem and agree with your assessment, they often have a second appraisal done. This is not a guarantee, but banks and lenders want everything to be as accurate as you do. Otherwise, everyone loses money.
Keep an open mind
An appraisal can still be accurate and lower than you expected. There are many variables that go into an appraisal, and they constantly change over time. If the appraisal isn’t where you would like it even after having investigated it, you can always wait to sell. The comps etc. could improve within a few months or even a year. It is also good information to have the second time around. Maybe you think it over and instead, use it as a realistic guideline to pricing your home. Whatever the case may be, keep an open mind and adjust your options from there.