Is it possible to appeal the April report? I decided to write a post about Appraisal (Appraisals) because…
Is it possible to appeal the April report?
I decided to write a post about Appraisal (Appraisals) because for the first time I was able to appeal the Appraisal report. In every mortgage transaction, the lender sends on his behalf an appraiser whose job it is to check and evaluate the value of the property and this is to know if the mortgaged property is worth the value that the seller and the buyer agreed to pay. In my experience, appraisers are very conservative, which means they are very careful and because their job is to "protect" the bank's interest, they usually value the property slightly below its true value. They enter the house, checking the condition and quality of the property (similar to the inspection) but a more overlapping inspection. Their real test is to sit at home later and do homework. Make comps, call agents who have sold homes in the area and consult with them, and do tests and calculations on the true value of the home. Such an appraisal costs about $ 700-750 and it is not possible to choose who exactly will arrive. By the way, we as real estate agents, apart from coordinating his arrival in front of the tenants, must not really talk to him in order not to influence his decisions.
Several times the appraisals in the properties I sold came out low (usually when I represented sellers and we were fit to sell at a high price) and knocked us down deals. Last week I was on a contract to sell a property and the appraisal came out $ 34,000 below the price agreed between buyer and seller.
I wrote to the lender (the mortgage broker in this case who works closely with us) a long and detailed email with lots of reasons why the appraisal is inaccurate and indeed for the first time I was able to challenge and increase the value and all this within our time in the deal (
My main claims were:
- One of the compasses on which the frieze rests was a sale from 2019. After all, in today's crazy market, since 2019, a lot of water has passed through the river, especially a drastic price increase, so do not use this compass.
- The property we examined was a triplex. The appraiser relied according to the MLS on another property that was presented as a triplex, but in a deep examination I conducted in the county, it was a duplex that was used as a triplex or in other words an illegal triplex and therefore it was not considered either.
- Another compass he used was indeed Triplex and in his description of what MLS was written it was refurbished so the appraiser downgraded the value of our Triplex which was less refurbished. I found pictures of the same triplex that was defined as "renovated" and showed that it was just a description and that was not the case.
The Appeals Committee accepted the allegations and raised the price to the purchase price agreed upon by the seller and the buyer!
Usually from experience, it does not work these appeals but in this case it worked and therefore always worth a try.
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
First time I hear of someone who managed to appeal ????
I had the same story this week with a 33k gap, I did not have enough comps to even try to appeal.