4 Smart Moves to Challenge an Appraisal Value

Here's a nightmare scenario for anyone trying to sell a home: a deal-killing appraisal that shows your house isn't worth nearly as much as your sale price. This is not an uncommon occurrence. Each month, about 1 of every 10 real estate agents reports that low appraisals scuttled a home sale, according to the National Association of Realtors. A low appraisal can lead to a canceled sales contract because lenders won't approve mortgages for more than the home's value. But if you believe your home is worth more than the appraisal shows, what should you do? Most lenders have a process for challenging an appraisal, says Bob Lear, a real estate appraiser for more than two decades. But you must be prepared to point out mistakes the appraiser made in comparing other properties or by missing new or upgraded features in your home. Our 4 smart moves won't guarantee the outcome you're looking for, but they should help protect against honest mistakes. After all, an appraisal is just the appraiser's opinion.