Can You Get a Second Opinion On A Home Appraisal?
A home appraisal is how a current home value is determined and is critical to banks for mortgages and refinancing. Since banks won’t lend more money than the value of the home, the appraisal is a determining factor in the amount of a home loan. This means a low home appraisal can be hurtful in receiving a home loan or refinancing.
If you have good reason to believe the appraisal was too low, you can get a second opinion on your home appraisal.
How To Get A Second Opinion
To start, find a reason to appeal.
This could be fact checking for errors like miscounting bedrooms or bathrooms, or listing the wrong square footage. If there are no factual errors, it’s important to consider if your own opinion of value is unbiased - is it what you WANT for the house, or what you KNOW it’s worth?
Next, Challenge The Appraisal
If you still believe your home is worth more than it was appraised for, you can challenge the appraisal. But - you must be prepared to point out mistakes the appraiser made in comparing other properties, “SIMILAR” sales comparable’s that the appraiser did not use or new/ upgraded features in your home that the appraiser missed.
The first step is to collect the data the appraiser didn’t provide, or details about how the appraisal was incorrect.
This information needs to be sent to the lender and your real estate agent can assist. Once the lender receives the data, it is sent to the Appraisal Management Company, then finally to the appraiser. Once the appraiser sees your information, they are required to respond.
In the end, you may or may not be able to get the value changed.
The appraiser has to answer to underwriters and state regulators as well as following the Uniform Standards of Appraisal Practice (USPAP), so they're not very willing to change values unless there is an error in the report (missing adjustment, math error etc.) or new information that was not available initially is provided.
Need A Second Opinion Appraisal In Phoenix AZ?
We do home appraisals in the Phoenix area including Scottsdale, Chandler, Gilbert, Mesa, San Tan Valley and surrounding areas. We welcome you to look through our website, review appraisal services, join our Facebook community, and learn more about our expert appraisers.
Give us a call to schedule your appraisal.