If you are ready to sell, a poor appraisal can ruin your excitement and take away from the equity you’ve worked so hard to build. But, according to the mortgage lending experts from Texas Lending, you have the right and obligation to dispute an unexpected dollar value. Read on as the Texas-based company answers a few common questions regarding appraisal disagreements.
Q: What is the first thing I should do if my appraisal does not come back with the valuation I expected?
Texas Lending: Your first line of offense is to meticulously scour the appraiser’s records. An appraisal is made up of two primary components: the actual value of the home and the data upon which that value was established. An issue with the latter can significantly affect your home’s potential sales price.
Q: What types of issues?
Texas Lending: The appraisal is based on comparable homes (comps) in your area and the appraiser will rely heavily on recent sales figures in the estimation of the property value. There are a number of factors, however, that can invalidate comps. These include short sales, foreclosures, and sales where the owners were under duress such as in the case of spousal death.
Q: Should I make a point to show the appraiser upgrades on my home?
Texas lending: Absolutely, you know your home better than anyone and are keenly aware of upgrades – both visible and hidden – that add monetary value to your property. It’s probably best to steer clear of pushing obvious improvements, however. Pointing out a new roof, for example, may come off as condescending. Keep in mind that the appraiser is an expert in the field and will notice significant improvements right away.
Q: How do I request a value appeal from my lender?
Texas Lending: Simply pick up the phone and speak with the mortgage agent. While your lender is under no obligation to change the appraiser’s valuation, they may be willing to consider a revision if you can provide enough substantiated evidence.
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