What To Do If Your Appraisal Comes In Low?

Unfortunately, despite even the best efforts, our customers’ home appraisals can sometimes come in lower than they hoped. Plenty of outside factors can affect your appraisal, and sometimes these factors can occur through no fault of your own. These forces could sometimes be:

• A rising seller’s market
• A slowing buyer’s market
• A poorly trained appraiser
• A poorly done appraisal job
• A poorly made comparable
• A lack of needed repairs
• A poor surrounding location
• A feature (or features) in poor condition

Of course, you can control the repairs, renovations, restorations, and overall housekeeping done around your property. Researching and reviews, though not a foolproof answer, can give you a good picture of an appraiser’s quality and qualifications in advance. 

But you can only do so much about the world around you, and you can only do so much pre-emptive research about an appraiser or appraisal company before you order their services. Even so, there are plenty of ways to move forward and obtain good results, even in the aftermath of a disappointing appraisal report. Keep reading to find out some helpful steps you could take.

1. Increase Down Payment

A buyer could amp up their down payment or set it aside to recoup some of those losses. Often, the ratio of the loan to the appraised value is prioritized higher than the purchase price, so do what you can to make that loan ratio as ideal as possible. 

Also, be open to negotiations. Appraisers are required to adhere to any state and federal regulations and remain an objective, neutral intermediary that isn’t biased in favor of the buyer or seller. Keep an objective, open line of communication to ensure that you can mutually work toward the best possible results for both parties. 

2. Request A Copy Of The Appraisal Report

If you suspect that there are any discrepancies or deliberate misinformation in your appraisal report, then request a copy of it. Try to facilitate a civil dialogue between you, the buyer/seller, the agent, and the appraiser. Generally, the agent will bring the dispute up to the lender, but it’s still best practice to bring up any suspected issues yourself regardless.

If necessary, ask the buyer to dispute the appraisal, and have the following evidence ready to substantiate your case:

• Comparisons
• Receipts
• Market research that conflicts with the appraisal report
• Any proof that suggests the appraiser failed to conduct a proper appraisal

In any case, negotiate, negotiate, negotiate. That is the one big word you should have in mind when looking to dispute or move past a dissatisfactory appraisal.

3. Appeal The Appraisal

As a buyer of the appraisal order, you are the person entitled to challenge it if you aren’t satisfied with the end result. Bring these concerns up to the appraiser as you would with your lender or buyer. If you’ve exhausted all of your options, all potential compromises, and all possible negotiations and still aren’t feeling satisfied, then you’re well within your right to cancel your contract.

4. Consider Getting A Second Appraisal

You may not be satisfied no matter what avenues you attempt to go down with your appraisal. Granted, you may end up getting pretty similar end results from a second appraisal, whether those stem from factors within or outside of your control. 

Regardless, you may want to consider doing a do-over with the help of Allstate Appraisal! Our national team of certified staff appraisers has been in the business longer than over 97% of the appraisal management companies currently running today.

So, with years of tried and tested success stories under our belt, what are you waiting for? Contact us today to learn more and arrange an appraisal order!