Realtors are finding that low appraisals are putting the brakes on deals more often than they like to recount. Â The problem may lie with the fact that Federal rules encourage banks to use in-house or affiliated appraisal management companies even though they may not have a person on staff that is familiar with the properties location.
How can we help the appraiser determine the true market value?Â
Actually it is quite easy if you are working with a Realtor that is familiar with the area, as Federal rules allow you, or your agent, to provide the appraiser with your own comps and actually appraisers are usually thankful for the help. A good realtor will put together a report with clear explanations for comps selling low, such as short sale, bank-owned or a divorce situations. They will will be sure to point out the features on your home that will cause it to appraiser higher.
If the appraisal still comes in low after taking all these precautions be sure to ask for a copy of the appraisal and appeal directly to the lender. If you feel the appraiser was incompetent you may ask for a second valuation, although this may cost you some money.
Waiting for an appraisal to return can be nerve-wracking but as long as you have done your homework, and made the effort to show your findings to the appraiser, you should sail through that portion of the lending process with ease.
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