Top 10 Ways to Avoid Low Appraisals

5. Challenge inaccurate reports and inappropriate practices, and request a second appraisal when necessary

Appraisers are bound by their code of ethics to provide accurate information in their reports, Gardiner says. If an appraisal contains errors, contact the lender with your concerns and notify them that you are going to discuss the errors with the appraiser.

There’s no rule against a lender requesting a second appraisal if the original contains errors or was conducted improperly.

To make this happen, you need to have all your supporting information prepared. Give the lender all the information you provided to the appraiser, particularly as it relates to appropriate comps that support the sale price. If those were not considered in the appraisal, the appraiser will have to justify that decision.

Mitchell went through this process on a lot with a mountain view that couldn’t be seen from the street, but was in full view of where the house would be sited. His sales agent had asked the appraiser to meet her on the site and was told the appraiser didn’t have time.

“They ended up doing a drive-by appraisal of the lot,” Mitchell says. “They noted a comp having mountain views and pastoral views and knocked the value of our lot because it didn’t have that. If they’d gotten on the lot, they’d have seen we had a better view, but they didn’t take the time. We went through the appeal process with the bank and gave them four or five additional comps. They ordered a new appraisal, which came in at higher than our sale price. At the end of it all, we got the appraisal, but it took 30 to 45 days with a lot of back and forth.”

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