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WHAT TO DO WHEN AN APPRAISAL COMES IN TOO LOW?

Reblogger Elise Harron
Real Estate Agent with Dirt Road Real Estate BR645447000

CONRAD saves the day!!!!  We just had this happen on the "other side," my buyers home is undercontract in another state, thier purchase here in AZ is contingent and their appraisal came in lower than anyone expected!  I can't help but post this awesome tidbit of info.... Thanks Conrad!

Original content by Conrad Allen 74203

First, you need to get a copy of the appraisal.  I read another blog that said the "guidelines" vary from lender to lender.  That couldn't be further from the truth.  Appraisers must follow USPAP.  USPAP stands for the Uniform Standards of Professional Appraisal Practice.  State to state and town to town appraisals all look the same.

They contain the same information.  The only difference would be addresses.  Appraisers must be geographically proficient.  No more out of state appraisers who don't know the area.

So how can we dispute the appraisal?  It has to be about the comparables used.  You have to have better comps than the appraiser.  If you don't then you are dead in the water usually.  Vary, vary rarely do you find math mistakes.  Adjustments are tough to fight.

So if you did your job in the beginning the appraiser would have had the best comps when he came to do the appraisal.  Is it worth double checking the appraisal?  You bet it is if only to see what the appraisal looks like.

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Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Elise.  If there is anything I can do to help let me know.  Thanks for the re-blog.

Oct 10, 2013 12:12 PM
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

Adjustments are difficult but don't forget to look for OMMISSIONS, once I had a low appraisal and the appraiser had TOTALLY overlooked the sunroom addition, another time the appraiser did not take into account the additional lot included in the sale.

Oct 10, 2013 02:05 PM
Elise Harron
Dirt Road Real Estate - Kingman, AZ
Rural Vacant Land and Development Specialist

Thanks gentlemen - I have passed along your Blog Conrad and Greg's suggestion to my Buyers (sellers on the other end) in hopes that this is resolved! 

One thing is for sure - if you have ten lawyers in the room you will likely have 9 different opinions - I'm guessing appraisers wouldn't be that much difference - maybe ten to the room and at least 3 or 4 different ways to evaluate the very same property!

Oct 10, 2013 02:14 PM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Pick the comps, help the appraiser do his job. Or suffer the consequences if he does not come in on target for the price you need.

Oct 13, 2013 11:29 PM