How to Challenge That Low Appraisal

While low appraisals are not always wrong, problems sometimes occur when an appraisal management company uses an valuation professional who is unfamiliar with the local area or when foreclosures or short sales used as comparables lower the prices of non-distressed properties. Experts say sellers can improve valuations by providing the appraiser with information about the property, such as home improvements, and by encouraging sellers — who are permitted to talk directly to the appraiser — to be present during the appraisal. When faced with a low appraisal, buyers can cancel the contract, negotiate a new deal, or offer to pay more money. They also can challenge the paperwork if the comps lack geographic relevance or have different interior and exterior features, or they can ask the lender to hire another appraiser. | Read More