Challenging Low Home Appraisal: Your Essential Guide
Monday, 31st July 2023
In the world of real estate
In the world of real estate, appraisals are crucial to shaping the financial landscape of a property deal. An appraisal is a professional estimate of a property’s market value. It’s determined by an appraiser, typically as part of a mortgage lending process, to ascertain whether the home’s contract price is appropriate given the home’s condition, location, and features. When selling your home, getting a fair appraisal value is key to securing the best possible deal. But what happens if you receive a low appraisal?
If you find yourself in this predicament in Arizona, do not fret. There are ways to challenge the appraisal and potentially raise it to a more satisfactory level. In these situations, choosing an experienced real estate team, such as The Carol Royse Team, can significantly improve your chances of success.
Why Low Appraisals Happen
Several factors could lead to a low appraisal. Sometimes, it could be due to the appraiser not being familiar with the local housing market or failing to consider relevant comparable sales. Other times, it might be because the appraiser overlooked or undervalued certain home features.
The Appraisal Rebuttal Process
If you believe the appraiser undervalued your home, you can go through the appraisal rebuttal process. Here’s how to go about it:
- Review the Appraisal Report: Start by scrutinizing the report for errors. Look for inaccuracies about your home’s square footage, the number of bedrooms or bathrooms, or the property’s age.
- Gather Comparable Sales: Find recent sales of similar properties in your area that were not included in the appraisal report. These comparables, or “comps,” should be homes that have similar features and are in the same or a similar location. They should also have sold recently – preferably within the last three months.
- Document Home Improvements: Provide a list of improvements you’ve made to the home. Be sure to include receipts and documentation if possible.
- Compile Your Rebuttal: Put together a well-documented, written argument that outlines why you believe the appraisal was incorrect. Include all supporting evidence.
- Submit Your Rebuttal: The rebuttal should be submitted to your lender, who will then forward it to the appraisal company for consideration.
Why Real Estate Selection Matters
Navigating the appraisal rebuttal process can be complex, and having an experienced real estate team in your corner can make a world of difference. For instance, a reputable team like The Carol Royse Team, with a deep understanding of the Arizona housing market, can assist in finding the most relevant comps, help you highlight undervalued features, and even liaise with appraisers and lenders. They can guide you through the process, providing invaluable advice and support, ultimately helping bring your home’s appraisal up to market value.
A low appraisal doesn’t have to spell the end of a successful home sale. With thorough research, careful preparation, and the right real estate professionals on your side, you can challenge a low appraisal and ensure your home is accurately valued. Remember, it’s not just about selling your property; it’s about attaining the best possible outcome.
Looking for your perfect real estate match? Finding your dream agent is easy with https://www.carolroyseteam.com/. Our team consist of top Real Estate agent to help you with any of your real estate needs! Call Carol Royse at 480-776-5231. Or feel free to share our contact information with anyone you know that needs expert help in buying or selling their home.