Challenging the bad home appraisal with a smart move
A home appraisal is an unbiased view of the expert, who has a professional knowledge in mentioning the appraisal of your property to the bank against the said loan or papers. Sometimes, the appraiser makes a mistake while preparing your home appraisal which might put you in trouble. During such circumstances, you need to fight back for getting a second home appraisal. Every time a second home appraisal doesn’t work in your favor but you can still try using some smart moves for overcoming a bad home appraisal.
What is a bad home appraisal?
A bad home appraisal is a lower value appraisal than the amount you have expected of your house or properly for resale or loan. As per the national institute of Realtors, 1 out of every 10 home appraisals reports a bad home appraisal every month. This is quite common and there are ways to challenge it by raising an appeal for a second home appraisal.
The lenders generally approve the loan amount based on the home appraisal report and hence if you have received a bad home appraisal then it is important to fight back or you are going to lose a great opportunity.
Warnings that you need a second appraisal for your property
If a house next to yours or a house in the neighborhood is sold at a higher price than the amount mentioned in your home appraisal report then you must seek for a second home appraisal by requesting the lender or the bank. Sometimes the appraiser has not used the comps wisely and he might have missed out many things to mentioned in his report or statistics. You must bring it to the notice of your bank that the house in your neighborhood is being sold at a certain minimum rate.
If you have made some recent changes in your home or if you have recently made some renovations then it is important to mention it to the appraiser so that he can consider the renovations while preparing your home appraisal report. You must have spent a great amount of money after renovating your house and this adds more value to your house than before. Hence, these things are to be considered by the appraiser for finding out an estimate of your home property. If he hasn’t done that, you must call for a second appraisal discussing the same to your bank.
Apart from the above-mentioned reasons, there are other ways too for helping your home to earn a good appraisal. The following key comparisons are must for any appraiser to mention in the report such as square footage, home age, the condition of the house, facilities inside the home, furniture cost, location of the area and neighborhood, etc. You can talk with the lender or the bank to know whether all this information was considered on the primary basis for preparing the appraisal. It is important for the appraiser to be a local person in order to be aware of the current location and its land value. An appraiser must be knowledgeable on various factors to make a really strong appraisal about your home or property.
Nevertheless, you can ask the bank for a second appraisal by writing a letter to him. You can yourself also prepare your home appraisal by paying for the expenses.