Homeowners often spend a lot of time and money improving their home over the years. So, when it comes time to sell, they’re hopeful that it will appraise for more than they purchased it for and invested in it. When these appraisals come back low, many times they are left wondering why?
The Importance Of Home Appraisals
Home appraisals are supposed to be an objective, unbiased estimate of a home’s value based on other homes in the area that compare in size, any renovations the homeowners did, as well as other concrete variables. Unfortunately, home appraisals can vary based on the appraiser and even who is home while the appraisal is being done.
- Rid Your Home Of Personal Items – Real estate agents often advise their clients to depersonalize their home regardless of any minority status so that prospective buyers can visualize the home as their own and not yours. Doing this before your appraisal can keep an appraiser from making a biased valuation. Remove all your family items and pictures to eliminate the distraction of things that have nothing to do with the value of your home. Having your home in the most neutral state is best when it comes to selling your home and having it appraised.
- Do Not Attend The Appraisal – You might want to be there, but you shouldn’t. Allow your listing agents to deal with the appraiser. It is not ideal for sellers to ever meet the appraiser– your agent should be the one handling that. They should come prepared with area comps and present them to the appraiser with skill. Your agent should know what to say to keep from accidentally throwing your appraisal off.
Do You Feel Like Your Appraisal Wasn’t Fair? Here’s What You Should Do.
Those steps can be helpful to avoid an appraisal bias, but what if you have an appraisal that you feel was wrongfully swayed?
If you believe your home was not appraised properly, or that there was bias involved, you have quite a few options. Specific laws have been put in place to protect homeowners from appraisal bias and there are established agencies to help negotiate them. Lenders are aware of this and are usually willing to cooperate while everything is worked out. At the end of the day, all parties want the loan to go through.
If you believe your appraisal was biased, here’s what you should do:
#1: Have the report reviewed
If you are in the process of selling your home, talk to your listing agent about reaching out to the lender to make them aware of comps in the area, as well as other features in your home that your appraiser might have overlooked while doing the appraisal. In some cases, all you have to do is mention discrimination to get the lender to zero-in.
If you are refinancing, contact your lender representative directly to talk about your concerns.
Tom Reese has 20+ years experience in helping his clients sell their homes for a price that sells and makes them a profit. Tom has helped his clients buy and sell property in every neighborhood in Northern Kentucky and Cincinnati.
About Tom Reese
Helping my clients attain their dreams has been the foundation of my success. With my strong attention to customer service, I have earned my clients continued support and referrals. Put my enthusiasm and dedication to work for you!
Call Tom anytime at (859) 393-1293