Purchasing a home is usually one of the largest investments a person can make. This is why it is absolutely critical that you take every detail into account in order to ensure that you are receiving the best possible deal. One of the best ways to do this is by requesting an appraisal of the house, which, essentially, allows you to determine the fair market value of the home. If you are a veteran and are purchasing a home with a loan backed by the Department of Veterans Affairs (VA), an appraisal is mandatory. While appraisals help in giving buyers as much knowledge possible in order to make an informed decision, are they always accurate? What if you wanted to challenge that appraisal because you think it’s a bit unfair? Well, today’s blog will provide some tips on how to do just that.
Get Your Information Straight
When requesting an appeal, you aren’t exactly simply asking for a “re-do”; you must present proof that shows that the original appraisal was, in fact, erroneous. In order to do this, you must get all of your information in order and comb over every piece of it. Once you’ve been given the appraisal report, you must read over it in its entirety and create an airtight case, otherwise, you risk wasting your time. Some of the most common mistakes are those related to square footage and additions and renovations that can positively or negatively impact the property’s value.
Speak With Your Agent
In order to determine the value of the property, appraisers obviously compare it to the market, however, sometimes they do not have the most up-to-date information. This is where your real estate agent comes into play. Speak with your agent and ask if they can create a comparative market analysis (CMA). Including the CMA with the most up-to-date values of various other properties in the area in your appeal can mean the difference between winning and losing your case.
So now you’ve spoken with your appraiser and your agent, you’ve written to your lender and you’ve received your new appraisal, but it didn’t go the way you’d hoped. The value is roughly the same and you’re left feeling defeated. This does not need to be the case. If the appraisal process did not work in your favor, then maybe some good old-fashioned negotiation will. Speak with the seller and ask if there is anything that can be done about price. Present your information in a positive, respectful and professional manner and maybe the seller will reconsider the price.
The appraisal process can be a lengthy and arduous one, but it is important. What’s even more important is knowing that you have the right to challenge that appraisal in order to get the most accurate value possible.