How does one challenge appraisal results?

Asked by Trulia Oakland, Oakland, CA Mon Apr 29, 2013

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Jackie Care, Agent, oakland, CA
Mon Apr 29, 2013
It depends. I dont know if you are dealing with a purchase or a refinance?
I've recently helped rebut an appraisal for a clients refinance. The data the appraiser used was from 2012 and they used a pending price which was $100K under the sale price. (local agents often have this information) The mortgage broker asked me for very speciific data, list to sale price, all closed sales in a particular area and any other information I could provide as a local agent very familiar with the inventory. A local mortgage broker and a local agent can be a big help if you're trying to do this!
Sometimes, the listing agent, the buyer and the buyers agent can write narrative reports to
explain why they are all in agreement on the purchase price! Buyers looking for months in a particular area where there is zero inventory are going to pay a premium.
When an appraiser calls to set up an appointment, you may want to make sure they are familiar with the area. I think they have a very hard job.... value is never just in the data!
1 vote
Antoine Pirs…, Agent, Oakland, CA
Mon Apr 29, 2013
Not easily. Appraisers are not very willing to "adjust" their appraisal as it would indicate they did not do a good job to begin with. They also do not want you to talk to them "directly". You will have to find issues like: not the right comparable, not the same finishes (appraisers rarely know anything about the inside of another property), not the right size, too far from the subject property, lot size issues, etc etc. If you are not familiar with reading appraisals, they are somewhat puzzling. Ask your mortgage broker, to see if you can get a second appraiser in (at a cost of course), and in time withing the offer criteria. The appraiser may not be familiar with the area ( happens more often than you think). I do not wish this on anyone. Good luck.
1 vote
Lance King, Agent, San Francisco, CA
Mon Apr 29, 2013
It depends on where there is something(s) one can point to that are flawed in the appraisal. Measurement is often the biggest problem, so you can pay another appraiser a small sum to re-measure.

We have been successful rebutting a number of bad appraisals, but there has to be something you can point to that is wrong about it.
1 vote
Robert Chome…, , San Diego, CA
Mon Apr 29, 2013
You need to ask the buyers lender for instructions on how to challenge the appraisal. The key is you need to find comparable sales not used by the appraiser that support the price you want. You can send these comparables to the buyers loan officer to submit to the appraiser.
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