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Are there any drawbacks to appealing an appraisal that’s lower than the purchase price?

by JennyPascale728 from Fort Wayne, Indiana. Feb 8th 2017 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,938 contributions

You have the right to appeal the appraisal, but in my experience, you have a very tough road ahead of you.. No one likes to be told how to do their job, and appraisers are no exception.. they are used to dealing with homeowners who think that their property is much more special than any other property in the area.. but unlike the homeowner, the appraiser is not emotional in his decisions.. he has a specific process he goes through to determine valuation.. are they wrong sometimes?? Yes... Do they make mistakes?? Yes.. but the majority of the time, their valuations are spot on..Keep in mind that the requirements to become an appraiser is very stringent.. First you have to have a 4 year degree, then 1 year of "Appraisal Education".. then you must work as an apprentice appraiser for 3 years.. that's 8 years before you ever do your own appraisal. this all being said, if you wish to contest the appraisers valuation, then you will be required to put your request in writing, provide additional comparable sale that have closed within the most recent 90 days, and that was not listed on the original appraisal, and provide an explanation as to why you believe your property value was not correct.. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Feb 8th 2017
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Scott Swinford (scott@nwiloanguy.com)
#17 ranked lender in Indiana - 18 contributions

You didn't mention if you are the buyer or the seller, as that does make a difference. Assuming you are the seller, you always want the appraisal to be at or above the purchase price.The buyer, on the other hand, may want to see the appraisal come in at or under the purchase price so that they can possibly renegotiate a lower price for the home. The drawback is that you are possibly asking to pay more for the home than the real market value that the appraisal is supposed to show. Depending on the loan type, you may or may not be successful in being able to get the appraised value increased. If you have specific questions, you are welcome to contact me directly.

Feb 8th 2017
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Mike and Jill Kohler (LenderMike)
#31 ranked lender in Pennsylvania - 56 contributions

You could always appeal it, but in my exerience I've only every had one go my way, and that was for a refinance. You could always try, but I would highly doubt the appraiser will change his opinion of value. That's like asking an umpire to change his call. It doesn't happen.

Feb 9th 2017
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