What Can You Do If You Have Issues With Your Appraisal?

BAD_home_appraisal
This is somewhat of a continuation of the previous article on Low Appraisals Killing Deals.

Homeowners across the country are speaking up about appraisals that are believed to be wrong.  In some cases, owners are claiming the appraisals are not what the owner believes they should be or what a realtor has listed the home for.  In some cases, these are just misunderstandings by the owners or what the owners think their assessments should come in at.  On the other hand, there are appraisal errors that need to be addressed and corrected.

There are many aspects to a full home appraisal that are taken into consideration by the assessor when appraising a home’s value. Are they overlooking an improvement because it’s subtle? Are there homes in your neighborhood that were For Sale by Owner and you happen to live in a non-disclosure state? Not everything is in error as you might see it, but within the appraisal guidelines and the information that the appraiser has available to them.

Upgrades Not Included In Appraisals:

Home owners will, at some time, make improvements and upgrades to their home and expect this to increase the home’s value.  During the appraisal process, upgrades, new construction and other features should be picked up in the assessment.  In many cases the upgrades are obvious while others are subtle and not picked up at all.  When an appraiser visits your home, be available to ask questions once he or she has completed going through the house.  The appraiser should speak with you after the inspection, but if not, request they go over their findings so you can either point out upgrades they overlooked or ask questions regarding their findings.

You, as the homeowner, should have a complete list of any improvements you have made to your property for the appraiser to take along with them.  Your list should consist of the renovations made and a short description of what was done.  If you have kept records of the expenses, include them as well.  The actual cost you paid has little to do with the appraisal, but it can reflect the quality of the work put into the project.

Your Neighbor’s House Was Not Considered In The Appraisal:

A good appraiser should consider other homes in the area and have access to all the sales carried out in your area as well. . Keep in mind, that just because you next to a specific house, it might not be similar to yours and the appraiser might not be looking that closely at that particular property.

On the other hand, a private sale may be difficult for the appraiser to get information on because they may not be listed because the property was For Sale By Owner. If you live in a non-disclosure state, it may be totally impossible to get any information on these homes.

You can get with your neighbors and see if that information can be made available to the appraiser but that is up to the other homeowner.

Keep in mind, that whether the appraiser uses this information or not is totally at their discretion.  He or she has to believe that the particular house in question is even comparable to your home and whether it matches up with the underwriter and appraisal guidelines.

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