How to Dispute an Appraisal

By Daniel Duffield

Dealing a with Bad Appraisal

When getting a home appraisal, many factors can come into play that can distort or misrepresent the actual value of your property, and an inaccurate appraisal can be very detrimental in many cases. According to the National Association of Realtors (NAR), the most common reasons for an inaccurate appraisal include ambiguous neighborhood boundaries, inaccurate lot dimensions, underestimation of home renovation costs or materials, and erroneous floor dimensions. In order to avoid receiving an appraisal with a low estimate, present your home’s blueprints to the appraiser, along with a list of renovations and remodeling. If you have already received a bad appraisal and would like to contest it, this article will cover some basic ways to deal with an inaccurate appraisal:

1.       Inspect the Appraisal Report.

When you receive your appraisal report, inspect it thoroughly to for anything inaccurately reported or misrepresented. Ensure that all home dimensions are precise and that nothing has been neglected. If you discover any mistakes, present the appraisal report to your lender or real estate agent, along with documentation that provides the correct information.

2.       Research Comparable Properties.

If you suspect that your appraisal estimate is lower than it should be, try researching comparable properties. A comparable property is one that has recently been sold that is a relatively similar size and is located nearby in a similar neighborhood. To assess the accuracy of your appraisal, find comparable properties within your area to determine what their listing prices are and how their home amenities compare to your property. If you find a discrepancy between these home values and your appraisal, discuss this with either your real estate agent or mortgage lender.

3.       Contact a Real Estate Agent.

If you have any documentation to substantiate your claims that the appraisal was inaccurate, contact your real estate agent and prepare to present this paperwork. While this may not be effective in all cases, real estate agents may sometimes be able to schedule a meeting with the appraiser to discuss and amend the appraisal estimate.

4.       Consult Your Mortgage Lender.

If you have been unable to successfully amend any errors or misrepresented facts on your home appraisal through the above methods, you should contact your mortgage lender directly to see if there are any methods for recourse. According to the NAR, contacting your mortgage lender is essential when you have specific, documented proof that the appraisal is inaccurate. Ideally, the lender will be able to have a new appraisal conducted and override the first appraisal report, though this will almost always require some concrete evidence of misrepresentation.

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