How to Appeal a Home Appraisal

A home appraisal provides an estimate of a property’s market value. This valuation is a standard requirement for various financial transactions, including purchasing a home, refinancing an existing mortgage, or assessing property taxes. Occasionally, a homeowner may find that an appraisal report presents a value lower than anticipated or contains inaccuracies that could impact financial decisions.

Reviewing Your Appraisal Report

Examining the appraisal report is an important first step. Begin by verifying the basic property information listed, such as the correct square footage, the number of bedrooms and bathrooms, the precise lot size, and the property address. Also confirm the legal description and parcel identification numbers.

Next, scrutinize your property’s characteristics in the report. This includes construction type, age, and overall condition. Specific features like a garage, swimming pool, or finished basement should be noted. Errors or omissions in these fundamental details can directly influence the valuation.

Appraisals rely on comparable sales, often called “comps.” Review the properties the appraiser selected. Assess if these comparables are similar in location, size, age, and condition. Recent sale dates (ideally within 90 days) provide a more accurate market reflection.

The report details adjustments for differences between your property and comparable sales. These adjustments account for variations in features, size, or condition. Evaluate if these adjustments appear reasonable or disproportionate. Identifying factual errors, typographical mistakes, or significant oversights can serve as a basis for questioning the valuation.

Gathering Supporting Information

Building a case for an appraisal appeal requires collecting evidence. Focus on identifying new comparable sales the original appraiser might have overlooked or undervalued. Look for recently sold properties in close proximity that share similar features, size, and condition.

Documenting property improvements or renovations not fully reflected in the appraisal report is beneficial. Documentation can include receipts, permits, and before-and-after photographs. Descriptions of work performed, such as kitchen or bathroom remodels, provide evidence of increased value.

Researching current market conditions can provide further support for your appeal. This involves looking at recent sales after the original appraisal date, which could indicate an appreciating market trend. Information on neighborhood advantages, such as proximity to amenities, can highlight aspects not fully captured in the initial report.

Highlighting unique or desirable features of your property that add value but were not adequately considered is another avenue. This includes specialized landscaping, energy-efficient upgrades, or custom architectural elements. Obtaining a second opinion from another qualified appraiser or local real estate agent can provide additional data points.

Submitting Your Appeal

Once you have reviewed your appraisal report and gathered supporting documentation, initiate the formal appeal process. The party to contact depends on the appraisal’s purpose. For a loan (mortgage or refinance), your contact is usually the lender or appraisal management company that ordered the report. For property tax assessments, contact your local appraisal district or assessor’s office.

Appeals are often submitted via a formal request letter, referencing the original appraisal report and stating specific reasons for disagreement. This letter should list all attached supporting documentation. Some lenders or appraisal management companies provide specific forms for disputes, available directly from them or their websites.

Many entities offer online portals for submitting appeal documentation, streamlining the process once documents are prepared. Regardless of the submission method, compile all supporting evidence into a clear, organized package. Retain copies of every document submitted, including the request letter or completed forms.

Appeal deadlines are strict, typically 30 to 45 days from the appraisal report or notice date. Adhering to these timeframes ensures your appeal is considered. Submitting all relevant information in a comprehensive package can expedite the review process.

Understanding the Appeal Outcome

After submitting an appraisal appeal, involved parties, including the original appraiser, appraisal management company, or lender, will review it. Response time varies; a reconsideration might take one to two weeks, while a more extensive review could extend to 10 to 25 business days.

Several outcomes are possible following an appeal. The original valuation may be upheld if the appraiser or review board finds no basis to change the initial assessment. Alternatively, the appraisal could be adjusted, resulting in a revised valuation reflecting new evidence. If significant discrepancies or complex issues exist, a new appraisal by a different appraiser might be ordered.

If the appeal is unsuccessful, homeowners have further options. For loan-related appraisals, explore options with a different lender, as they may use a different appraisal process or appraiser. For property tax assessments, subsequent levels of appeal, such as a review board or formal hearing, are often available depending on local regulations. The entire process, from submission to outcome, requires patience due to the detailed review.