The key is that there needs to be a material basis; agents have to provide data that meets the underwriting requirements and show that the data should have been considered or is better than what the appraiser used. Once assembled, it's often up to the underwriter to decide whether it''s valid and if so, it'll go back to the appraiser. If the job was ordered through a management company, the appeal goes to them.
No smart agent wants to be in an appeal position, most are a waste of time and not overturned. The vast majority of agents don't provide compelling evidence and their objections are often baseless. Disagreements are fine but most agents that are asked to provide support just try to BS it with data that doesn't meet appraisal requirements.
As I said earlier - smart and experienced agents know what the appraiser will see and ensure that this information is made available to them. HVCC does not prohibit agent/appraiser communicaton; it prohibits coersion and manipulation. There is nothing wrong with leaving an info packet for an appraiser to review.
The sniveling by most agents about this is due to ignorance of the process. If agents would take the time to grab a class or two and stay current on things then maybe they would do better with values. The best way to avoid issues is to be well prepared, something that seems not to have happened with Saleswarden.
Your agent better not be "sitting tight" - he/she better be coming up with something to refute the opinion. A listing agent should always take control of this before it becomes an issue - there are many ways and your agent should have been ahead of the problem. If the data is there, it needed to have been in the appraiser's hand; you cannot expect appraisers to do this anymore.
If I'm the buyer's agent, I'm pushing you to the appraised value; this is good for the buyer. Getting a second appraisal would do nothing for me as their agent, I have a bank appraisal and wouldn't tell my buyer to do anything less than expect that to be the new price.
There's a chance errors could have been made but your agent needs to check that out. I've dealt with too many dumb agents about appraisals - tell your agent to get familiar with our requirements and submit data based upon that. Anything less or not factual is a waste of time.
You'll find my appraisal posts helpful - including - How to Challange an Appraisal - http://hounddogrealestate.com/category/appraisals-valuation/
"Bad" appraisal . . . Hank said it best: "The sniveling by most agents about this is due to ignorance of the process. If agents would take the time to grab a class or two and stay current on things then maybe they would do better with values. The best way to avoid issues is to be well prepared, something that seems not to have happened with Saleswarden."
I am helped a Veteran in Norfolk, VA and even though VA reviewed the appraisal and issued their NOV, the seller & their agent appealed the value with the appraiser (and subsequently lost). Another transaction in Detroit, MI we appealed an appraisal by providing clear evidence that one of the comps used was a rehab project (the subject was in great condition, while this comp was a HomePath property with a demo'd kitchen - no adjustment was made) and that one increased the value by over 5% of the home's initial appraised value.
If a party to the transaction says "I don't think that value is accurate, and I have evidence to prove otherwise" then I would always be very interested to know what that evidence is. I would first discuss my initial thoughts with the parties involved, and if a mutual agreement is made, we'd present it to the appraisal management company and request comment.
Supporting documentation must be submitted for the underwriter to review. Should the underwriter not agree to a dispute, then the issue ends there. More often than not, there is no real basis for an appeal to an appraisal.
To arrive at an appraised value, the appraiser will used 3-4 closed sales. They will often also add one pending sale and one active listing. Closed sales should be within the last 90 to 180 days with none being over 12 months old.
Contrary to what other answers may imply, the seller, buyer, or agent cannot dispute an appraisal. Only the underwriter of the buyerâ€™s lender has the authority to dispute an appraisal. This would only be done if the underwriter feels as though the report is flawed. Should there be grounds to dispute the appraisal, the agents will need to provide comps which would be more similar and supportive. There are regulations in place that prohibit anyone from influencing an appraisal to arrive at a specific value.
If it is an FHA appraisal, the report remains tied to the property for 120 days. Any new buyer would have to use the same appraisal report if they obtain FHA financing.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
You may wish to have another appraisal done to determine the accuracy of the first one. If that appraisal comes in with a similar value then you might have to consider lowering your sales price and negotiating with your buyers.
Prudential Connecticut Realty