How To Dispute a Home Appraisal

The purpose of a home appraisal is to determine the fair market value of a property, and it’s usually conducted by a licensed, third-party inspector. However, if the results don’t match your expectations, then you may decide to dispute the appraisal.

Can you dispute an appraisal? Yes. Whether you’re buying or selling, here’s a look at the steps you can take.

Review the Appraisal Report for Errors

Once you receive the appraisal report, review it for accuracy. If you think that the report undervalues the home, then you’ll want to know sooner rather than later. If you’re selling and you’ve made upgrades or renovations, be sure to confirm that the appraisal report includes those features in its assessment.

Provide Updated Comp Data

If property values in the area have increased, then make sure that those are factored into the home appraisal. It can help to gather proof of what other nearby homes have sold for recently, especially if they’re not included in the appraisal report.

Check For Missing Permits

As a seller, to get credit for any renovations or upgrades you’ve done to improve the value of your home, you’ll need to provide the work permits you obtained for those projects. If you got the permits but can’t locate them, you can get a copy from the government agency that issued them.

Make an Appeal to Your Lender

As a buyer, make your mortgage lender aware of any discrepancies or additional information that wasn’t considered by the appraiser. It’s not uncommon for lenders to offer an appeals process if you’re unsatisfied with the results of the appraisal.

Request a Second Opinion

Although appraisers are supposed to be unbiased, there can be cases where it’s just best to get a second opinion. If the appraiser values the home lower than you expected, you could have a different appraiser assess the home and submit a new report. If there’s a large enough discrepancy between the two, the lender may reconsider the initial appraisal results.

FAQ

Here are the answers to some frequently asked questions about disputing an appraisal.

Can you get a second opinion on an appraisal?

If you aren’t satisfied with the results of the appraisal, you can have a different appraiser come in and evaluate the home. Just know that you’ll be responsible for this additional cost.

What if an appraisal has wrong information?

If you’re concerned that the appraisal report has incorrect information, then you can order an appraisal review. During this process, a different appraiser will review the report to verify the information and weigh in with their opinion. The review appraiser also can submit different comps if they feel that the original comps used weren’t appropriate.