Challenge a Low Appraised Value.

The first thing to remember is that not all appraisers are created equal and an appraisal is an opinion of value. We all know about opinions, everyone has one.   The second thing to remember is that appraisers are human and can make mistakes. However unlike an AVM (automated valuation model) Appraisers can change their minds based on additional valid information.

If you find errors or omissions, you can request a recertification of value from your original appraiser.  If the appraiser will not change their mind based upon the additional information, you can always get a second opinion.

Maybe you're aware of a sale, listing or pending sale the appraiser missed. Possibly the appraiser failed to note an item or value, or just undervalued an amenity. 

For example I've been able to help a client’s when appraisals come in low for homes they were trying to sale.  In the most recent transaction the appraiser adjusted a fireplace of a comparable downwards $5000 which is fine, but they also adjusted the same comparable sales upwards only $5000 for not having a remodeled kitchen. I disagreed that the market values a fireplace and a remodeled kitchen the same, did I mention she lives in Palm Desert where a fireplace sees little action? 

When an appraisal comes in low, request a copy and read it. 

You may notice errors or comparable sales which were not used in the appraisal. I cannot stress this enough, make sure they’re comparable!!! If you notice some errors be polite and state your case.

Ask the appraiser to reconsider the value. In my client’s case we were able to get the buyers to agree and come up with an additional $5000.

There is no guarantee a second appraiser will come in with a higher value but a different opinion is almost guaranteed. It may be worth a second opinion to save an additional $5000.