So, you’ve reached that critical point in the home-buying or selling process- the home appraisal. Only to find that it didn’t value your home as you’d hoped. Don’t despair; there’s a recourse, and it comes in the form of challenging the appraisal. You heard it right. You can contest a home appraisal, and here’s a comprehensive guide to help you navigate the process.
Why Challenge a Home Appraisal?
Well, it’s a big deal. A low appraisal can halt your home sale or refinancing dreams faster than a leaking roof on a newly decorated party patio. But before you dive headfirst into the process of challenging a home appraisal, you need to understand the reasons behind such a move.
Whats the Purpose of a Home Appraisal?
Imagine this scenario: you’ve invested money, time, and emotional energy into upgrading your home, only for a figures-focused appraiser to undervalue it. Frustrating, isn’t it? Especially when each dollar lost on the appraisal price means a dollar less in your pocket or a dollar more on your new mortgage.
Understanding The Basics: How Appraisals Work
Home appraisals often involve a thorough inspection of your home’s interior, exterior, and location. The appraiser considers things like the size of your home, the condition of its interior and exterior, recent comparable home sales, and any renovations or upgrades made.
How does an Appraiser Determine Home Value?
It’s akin to a complex puzzle with several moving pieces. Changes in local markets, house sales in your locale, and the quality of your renovations all play a part. It’s a tapestry of data and localized insight woven together to create a picture of your home’s monetary value.
Getting Down to Business: Challenge the Appraisal
Okay, let’s get to it. Enough of why and how let’s talk about the way forward. What can you do once an appraisal fails to meet your expectations?
Can I Dispute a Home Appraisal?
In a word, yes. You are within your rights to challenge an appraisal if you feel it undervalues your home. Let’s examine some actionable steps you can take in this regard.
Step by Step Guide to Disputing an Appraisal
1. Review the appraisal report: Look for possible errors or outdated comps. An overemphasis on foreclosures or distressed sales could also skew the appraisal.
2. Conduct your research: Gather evidence underscoring your home’s true value. This could include recent home sales not included in the appraisal.
3. Write your rebuttal: Document your concerns and justify your objections based on your research.
4. Submit the challenge: Using the appropriate channels, submit your dispute. Usually, this process involves your lender.
5. Wait: The review process can take time. Expect a different outcome but be prepared for the appraisal to remain unchanged.
In a Nutshell: Wrestling with the Valuation Ballpark
As Freddie Mae, renowned housing market analyst, once said, “Home appraisal challenges are definitely not pedestrian stuff. Like any other dispute, it takes a while. But with a compelling case, the results are often worth the effort”.
Ready to Challenge Your Home Appraisal?
Arm yourself with information, courage, and patience. And remember, while it’s a daunting task that requires effort, successfully challenging your home appraisal can mean thousands more in your pocket or shaved off your new mortgage. Here’s to fair home values!