Dealing with a lowball appraisal
Most homeowners have an idea of what their homes are worth. Unfortunately, these suspicions may not be accurate, especially in today’s soft real estate market. You may have an idea of what your home is worth, but a professional appraiser uses a different set of criteria. The appraiser’s role is to tell the mortgage lender how much a home would be worth on the open market if the borrower defaults on his mortgage. The net outcome may surprise you.
An appraiser is a professional in the field of home valuation. An expert, the appraiser is trained to evaluate a home, the surrounding community and the real estate market to discern what a particular property is worth. Keep in mind that home appraisal is not an exact science. Different appraisers may value a home differently. They evaluate factors differently, and with sales occurring every day, a home’s value can be a moving target.
The type of appraisal can make a difference in the value of your home. A full appraisal involves a visit to your home by a human being, and it tends to be the most accurate approach. The other type of appraisal is electronic. This increasingly popular method is completed entirely by computer, and it can be quite inaccurate. If your mortgage lender requires a home appraisal, insist that the full, human method be used.
If you feel that the value determined by the appraiser is too low, you can get a second opinion. But, you will have to pay for this second appraisal. If the second appraisal leads to a higher value, the bank still can choose which appraisal to use. If the second appraisal is at least 5% higher than the first, you may be able to convince the bank that the first appraisal was not accurate. Bring as much proof as you can in order to support the claims that you make to the bank. Find as many variations between the two appraisals as you can, particularly if they favor you.
Some approaches and mortgage lenders will be open-minded as long as you supply sufficient support for your opinion. You are the only person who has your best interests in mind; remember that. Be vocal, and do your homework. The results may wind up saving you a considerable amount of money. You just have to be willing to roll up your sleeves and do some work on your own behalf.
0 Comments:
Post a Comment
<< Home