If you review the assessment objectively and feel it is off-base, write a rebuttal or provide comments on your performance appraisal. State clearly why you disagree with the evaluation. A rebuttal aims to add a permanent record to your current review.
What you can do is appeal the appraisal, submit your comps that you feel are more representative of your property and see if the lender will request a reconsideration of value.
An appraisal is a professional opinion. As such, you can't sue someone for an appraisal and win, even if it is ``low,'' unless the opinion clearly violated professional standards.
If the lender won't reconsider or you think you received an unfair home appraisal, there are places to turn to for help. You can file a complaint with your state appraisal board, the Consumer Financial Protection Bureau or the U.S. Department of Housing and Urban Development.
Either the buyer or the seller can challenge an appraisal or request a second appraisal.
A sales contract with a kick-out clause allows you to continue marketing and showing the property. If by the kick-out clause date you find another buyer willing to pay the sales price despite the lower appraised value, you can 'kick out' the original buyer and accept the new offer.
Some of the factors that make a performance appraisal unfair are personal biases, comparing employees, changing standards, limited feedback, and a lack of training. Performance appraisals can have a detrimental effect on employees if unfairly conducted.
Appraisal is lower than the offer: If the home appraises for less than the agreed-upon sale price, the lender won't approve the loan. In this situation, buyers and sellers need to come to a mutually beneficial solution that will hold the deal together — more on that later.
The appeal must include: a. A written memo stating the employee's intent to appeal and listing the specific parts of the appraisal with which the employee disagrees and explaining the nature and extent of the disagreement; b. Copy of the performance appraisal with the employee's comments; and c.
Provide your lender with a written description of the problem with the appraisal or evaluation and provide any evidence you may have.
The concerns from the appeal will then be sent to the appraiser to make adjustments, if applicable. It can sometimes take up to two weeks before we hear the results of the appeal, so keep in mind that if you do decide to submit an appeal, it could delay your closing.
Appraisal bias is discrimination in the appraisal process, such as assigning a lower value to a home because of the race or ethnicity of the person who lives there. A home appraisal is the process through which a real estate appraiser determines the fair market value of a home.
Telling an appraiser that you think the house is worth more can backfire. It may make the appraiser suspicious of your motives. Appraisers are trained professionals who use market data to determine a home's value. They don't base their assessment on what the homeowner thinks.
If the appraisal is too high or too low compared to the agreed-upon selling price, a bank or lender may renege on the loan. Property value appraisals are also used for tax purposes to estimate the amount of property taxes the owner must pay.
Contact Your Lender to Dispute the Appraisal
Be prepared to support your contention by pointing out errors, omissions or other evidence indicating the appraisal should be reconsidered. The ROV allows you to request further details or explanations for the appraiser's valuation.
Appraisers do look in closets to determine the total square footage of the property. This doesn't mean every single inch of your house has to be in tip-top shape for the appraisal, but the interior of the home should be clean and free of clutter, and this includes closets, under sinks, and in the attic.
The quality and condition of interior features — such as flooring, walls, windows, doors, appliances, countertops, fixtures, and plumbing — greatly affect your home's appraised value.