Can the Buyer Contact the Appraiser?

A home appraisal is an objective assessment conducted by a licensed appraiser to determine a property’s market value. This valuation is a standard step in the mortgage lending process, acting as a safeguard for both the borrower and the lender. Lenders require an appraisal to ensure the property’s value justifies the loan amount being sought, as the home serves as collateral for the mortgage. The appraisal helps prevent a lender from extending more credit than the property is worth, while also protecting the buyer from overpaying.

Direct Buyer Contact Restrictions

Direct contact between a homebuyer and the appraiser is generally restricted to maintain the appraiser’s independence and objectivity. Regulations are in place to prevent any party with a financial interest in the transaction from influencing the appraisal outcome. Communication must typically flow through the mortgage lender or an authorized Appraisal Management Company (AMC). This intermediary system ensures the appraiser can form an unbiased opinion.

The Dodd-Frank Wall Street Reform and Consumer Protection Act reinforces appraiser independence requirements. These rules prohibit coercion, bribery, or attempts to influence an appraiser’s judgment. This prevents conflicts of interest and ensures the integrity of the valuation process. Appraisal Management Companies (AMCs) facilitate the assignment and review process, further insulating appraisers from direct influence.

Permissible Information for the Appraiser

While direct conversations about value are restricted, buyers can still provide factual information to the appraiser through the proper channels. This information should be compiled and submitted to the lender, who then forwards it. Acceptable documents include a list of recent home improvements, detailing dates, costs, and contractors involved. Information about unique property features not immediately obvious during a visual inspection can also be helpful.

Buyers can also provide details on relevant comparable sales the appraiser might not have considered, such as recent off-market sales or properties with similar characteristics that sold at a higher price. A complete executed sales contract, including all addenda, is also acceptable as it outlines the agreed-upon terms. Any shared information must be factual and not include opinions on value or attempts to persuade the appraiser towards a specific outcome.

The Appraiser’s Role and Independence

An appraiser’s primary responsibility is to provide an objective, unbiased opinion of a property’s market value. This objectivity is protected by strict independence requirements. Appraisers must operate free from influence or pressure from any party involved, including buyers, sellers, real estate agents, or lenders.

The Uniform Standards of Professional Appraisal Practice (USPAP) are the ethical standards appraisers must follow. USPAP mandates that appraisers act competently, impartially, and objectively. These standards ensure valuations are consistent and transparent. Attempting to influence an appraiser can lead to significant consequences for both the individual and the appraiser, who could face regulatory penalties and license issues.

Challenging an Appraisal

If a buyer disagrees with an appraisal’s outcome, a formal process exists to dispute the valuation, known as a Reconsideration of Value (ROV). The initial step involves reviewing the appraisal report for factual errors, omissions, or overlooked comparable properties. Buyers are entitled to a copy of the appraisal report from their lender.

All challenges must be submitted to the lender, with supporting documentation. This evidence might include additional comparable sales or details about property improvements not adequately considered. The lender will then review the request and may forward it to the appraiser for reconsideration. The appraiser is not obligated to change their original valuation but must consider the new information and provide a response, which could involve revising the report or offering further explanation. This appeal process focuses on correcting factual inaccuracies or demonstrating oversights, rather than negotiating a higher value.