Recently we had a presentation done in our office by an appraisal management company. One of the topics was how to go about challenging an appraisal that you’ve had done when trying to buy real estate that you don’t agree with. I thought I would share them with you. If you’ve had the unfortunate chance of having the appraisal on your transaction come in low, there could be a way to help your situation. You can try to “challenge” the appraisal by writing to the appraiser an appeal for reconsideration. The appraiser may, or may not take the information that you provide into account, but it is worth a shot. The following is a suggested outline on how to do so.
Please note that this is for general information purposes only and is not intended to be personal advice.
-Write an opening paragraph. “After review the appraisal for ______________ Address, we would like to request further investigation, based on the following points:”
-Write a bulleted list of the information that you believe is inaccurate. Ask specific questions if you feel you need clarification on why certain adjustments were made.
-Make sure to provide additional comps that support the price that you believe to be accurate.
-Be concise. The appraiser isn’t likely to thoroughly read a novel.
-Do not pressure the appraiser to come in at a specific price. Let the data speak for itself.
-Closing Paragraph: write a polite final request asking for reconsideration. One suggested format: “We would humbly ask the appraiser to take a second look at the information above as it relates to data and adjustments in the appraisal report. We appreciate your time and consideration, and please let us know if you have any further questions.”
Hopefully you have not found yourself in this situation, but if you do, the information above may help the appraiser see your side of things. Then again, after careful review of the information, the appraiser may feel that the original price is still justified. At that point, you may want to consider having a new appraisal performed if you feel that the information provided in the report is inaccurate.