A low home appraisal can mean problems for both the home buyer and home seller.
How can you protect yourself from this happening? Here are some suggestions for buyers and sellers.
If you're a home buyer tell your lender to:
- Find an appraiser who comes from your county, or perhaps a neighboring county.
- Make sure the appraiser have a residential appraiser certification and a professional designation, such as the Appraisal Institute's senior residential appraiser, or SRA, or membership in the Appraisal Institute, or MAI.
- Meet the appraiser when he or she inspects the home and share your knowledge of recent short sales and foreclosures that might skew the comps.
- Many appraisers are just pulling up data out of MLS (Multiple Listing Service) or off the deed at the courthouse and not checking it out and most good appraisers will appreciate the information.
You can speak with your appraiser; the prohibition only applies to your lender.
If you're a home seller:
- Get a home appraisal before you list and search for a qualified appraiser in your area on the Appraisal Institute site.
- A home appraisal will help to set a realistic listing price for your home.
- Give a copy of your prelisting appraisal to the buyer's appraiser.
- Question a low appraisal because there's always a chance the appraiser or a supervisor will take into account new or overlooked information.
