The new appraisal rules are supposed to protect lenders and consumers, however many homeowners have been burned by the system. Homes undervalued by appraisers unfamiliar with area, or inexperienced overall, have derailed many a sale lately.
Check out the great article in Money Magazine by Sarah Max, which provides you with a road map on how to get a fair appraisal. The keys? Hire a Realtor that will do the job when it counts and will advocate for your home’s value before and during the appraisal process, and, as a homeowner, you should also be proactive and do your part by properly preparing your home and providing relevant neighborhood information.
The selling process is a team effort. If, in spite of your best efforts, the appraisal goes south, don’t give up. Continue to fight for you the proper valuation of your home, straight to the real estate commission and appraisal board if need be.
September 18, 2009 at 11:46 pm |
Hey Allison,
I like your blog. The article about appraisals is VERY timely. I know a guy who had 4 appraisals for a construction loan and there was a $2M difference! How does that happen?
October 1, 2009 at 11:57 pm |
Thanks, Mark. I also had a recent appraisal issue, though not nearly as drastic as your story. In my case the appraiser selected lived and worked mostly in the mountains, was in no way familiar with the city or urban neighborhood in which my listing was located, and was unable to even correctly pronounce the street name. If was no wonder they were unable to correctly value the property. However, after making my case the appraiser did raise their valuation to within $1000 of the contract price — tell me that’s not a subjective crock!