When a home is being sold or refinanced, the bank must order an independent appraisal to ensure it is lending against the property's actual value. Localities appraise propertie൩s regularly to assess property taxes.

How happy you are with the 澳洲幸运5官方开奖结果体彩网:appraisal may depend on whether you are the seller, a buyer, or a taxpayer. As a result, it's essential to know what to do if the appraisal comes in lowe𝐆r—or higher—than you had expected. Your sales price, mortgage, or taxes are all impacted by the appraisal.

Whether you are a seller or a potential homebuyer, it hel💝ps to understand how appraisals work, especially if you need to challenge them.

Types of Appraisals

If you are 澳洲幸运5官方开奖结果体彩网:refinancing, selling, or financing the purchase of a home through a 澳洲幸运5官方开奖结果体彩网:mortgage lender or financial instit🤡ution, you will need a🧸n appraisal. An appraisal is an inspection of a home to determine its value and is performed by an independent, professional appraiser.

Not all homes must be appraised. For example, cash buyers can opt-out, which may occur when home prices are up and inventory is low. However, housing experts suggest that even when paying cash, it's still beneficial to know a property's value.

There are times when you might disagree with the appraisal value, but before disputing the appraisal, it's important to first determine which type of appraisal took place.

Online Appraisal

Some 澳洲幸运5官方开奖结果体彩网:mortgage companies perform an electronic appraisal (often to cut costs) where they do an internet searไch of comparable homes ("comps" is the appraisal term) and base the value of your home on the comps and other factors. With an online appraisal, information such as a newly renovated kitchen or bathroom or other items that might impact an assessment may not be visible online.

County Appraisals

Another type, often used for cಞounty appraisals, is the drive-by appraisal, where somebody may take a current picture of the home and research comps, again, without going into the home.

Traditional Appraisals

Finally, the 澳洲幸运5官方开奖结果体彩网:traditional appraisal occurs when the appraiser enters the home, collects current information, asks questions about any updates to the house, and then ♓makes a comparison to other homes similar to you𝓡rs in your neighborhood or town.

These traditional appra꧙isals may cost several hundred dollars and occur when a home is sold to a new owner.

How to Challenge a County Appraisal

County appraisals are conducted so property taxes can be assessed based on the current value of the home. If you aren't planning to move in the near future and when the assessment comes in too low in your opinion, remember that your property tax bill will also be lower.

If you're planning to sell your home in the near future, call your county auditor. Most localities allow you to appeal the assessment by providing evidence of upgrades and remodeling.

Finally, when valuing a property, real estate agents are more likely to research the comps in your area instead of using the county's or locality's assessed value, so it may not be as important as you think.

How to Challenge Other Appraisals

Whether you're purchasing or selling a home, if you believe the appraisal value is inaccurate, you can challenge the evaluation. The appraisal might be considered too low for a seller or for a homeowner looking to take out an equity loan or 澳洲幸运5官方开奖结果体彩网:equity line of credit (HELOC). Nevertꩲheless, you 🔴can ask to view the appraisal report and there are several ways to approach challenging an appraisal.

Real Estate Agent

Work with the seller's real estate agent to ensure that all upgrades, improvements, and large-scale repairs were factored into the appraisal. Next, ask the seller's real estate agent to speak with the appraiser about the comps they considered when establishing a selling price.

Mortgage Lender

If you're a buyer financing a home through a mortgage lender, ask the lender for a reconsideration of value (ROV). This reassessment is an analysis of the appraisal giving you a chance to voice your concerns as to why the evaluation was inaccurate. You can also provide additional information that should have been included that would affect the home's value.

Appraiser

You can request that the appraiser reexamine their findings based on your research of comps in the area. If there are very few recent sales in the area, the appraiser may have found similar homes in other areas that weren't as comparable as originally thought. If you can provide factual information to the appraiser, they may reconsider their findings.

Be Respectful

Finally, when challenging the appraisal, remember that people have feelings, and they won't want to admit that they're wrong to somebody who has put them on the defensive. Respectfully challenge the appraisal, always keeping conversations business-like. You can also ask your broker to help you plan out what to say to an appraiser or even act as a liaison between the two of you.

The Bottom Line

Sometimes, a low appraisal can work in your favor regardless of whether you're the buyer or the seller. If you're purchasing a home, a low appraisal may allow you to pay less for the house, and a lower appraisal often means lower county taxes. Remember that appraising does not always accurately reflect the current 澳洲幸运5官方开奖结果体彩网:market conditions.