Home appraisals are a mandatory part of the home buying and selling process that allow lenders to determine a home’s “official” value. Unfortunately, an appraiser may find that your home’s value is less than what you expected it to be. In fact, according to Quicken Loans Home Price Perception Index, appraiser value and homeowners’ perception of value often differ by a few percentage points.
The good news? You are able to appeal the appraised value if one of the following situations occurs, according to TheMortgageReports.com:
- When the appraiser doesn’t know the local area
When an appraiser is unfamiliar with your neighborhood, he or she may rely more heavily on data from public records to reach your home’s final valuation. If you feel this to be the case, notify your lender as soon as possible.
- When the appraiser uses outdated “comps”
This happens frequently because local home sales aren’t immediately reported to the public record. A real estate agent can help you find the most recent comparable (comps) sales, or if you’re aware of a recent sale, notify your lender.
- When the appraiser omits home improvements
If an appraiser omits key home improvements you’ve made, it’s usually because they aren’t aware of these updates. The easiest solution is to be on-site with the appraiser, then review the appraisal when it’s completed.
- When the appraiser makes a mistake
Always review your home appraisal for errors, such as incorrect information about the square footage, or the number of bedrooms and bathrooms; or omitted features, such as fireplaces and patios. Be prepared to show evidence of the mistake when you make your appeal.
