Low Appraisal Killing Your Deal?

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Unlike local appraisers who possibly live within your area, AMCs (Appraisal Management Companies) are pretty much taking over assessing homes. This has caused a huge problem because there is no quality assurance that the appraisers on their roster actually have the competency to perform appraisals in your area. For example, appraisers from Dallas coming to Austin to do an appraisal – that makes NO sense. These appraisers are not familiar with the neighborhoods in which they are working and the quality of appraisals has dropped enormously. This is how AMC operates: They will send a request for an appraisal to all appraisers on the list. The appraiser who is willing to do the job for the least amount of money will win the contract.

Like the example above, in many cases these appraisers are not from your area and therefore might not know anything about your location. Have they been given accurate data and information for appraising your home? Without accurate data, an appraiser may not be able to give a very reliable assessment.

There are a few steps you can take to ensure your home gets a fair and accurate appraisal. As the mortgage company or bank you are financing with. Ask if the appraiser has any experience in doing appraisals in your area. Request where this appraiser’s office is located, as it may be close by or it might be in a completely different city. If they have not done a great deal of work in your area, this could be a big problem. You have every right to request they provide an appraiser who has work experience within your perspective area.

Before the appraiser comes out to your home, they will contact you to set up an appointment. Ask them at that time if they are familiar with your area or if they are outside your area. If they do not know your area, contact your lender and ask for someone else to do the appraisal.

The Appraiser’s Stay Was Way Too Short:

There have been many cases where the appraiser has been in someone’s home for less than 10 minutes! They used their tape measure only once and many of these homes are substantially large! If homeowners are trying to sell their home and their lender simply sent the first appraiser they could grab, this is not providing an accurate and reliable appraisal.

When an appraiser arrives at your home and starts they inspection, watch what they are doing and see if there is any sign that they are actually collecting an pertinent information from their inspection. The appraiser should be collecting measurements for calculating the square footage. If they are not taking measurements that should send up a red flag. They should also ask you questions regarding your home’s updates, repairs or other renovations. This is not to say that you should follow an appraiser around asking endless questions and become a nuisance, just observe.

In Conclusion:

Homeowners put a great deal of time and money into upgrades, renovations or just needing a new look. Many of these homeowners at some time are probably going to put their homes on the market. They are moving to a new job somewhere out of state or the kids are grown and moved on. They deserve an accurate, professional appraisal that will reflect all this hard work.

If an appraiser is doing a good job, they will spend some time in your home taking measurements, asking questions and taking photos. Sometimes minor repairs or upgrades may not jump out, provide them with a list of work done on so they will know what to look for. Most appraisers are professional and will give you a very accurate report. Sometimes you might not like the outcome, but if it’s accurate you just have to accept it. If it’s a poor job, by all means go after your lender and request an accurate appraisal.

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