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Bad Appraisals and Their Outcomes
This lesson is super important for everybody that’s here today.
The thing is, is the market has cooled right where at the end of 2022.
The market has cooled and some people are getting bad appraisals on their own properties when they’re buying or refinancing.
So what happens if you get a bad appraisal?
And the thing is, there’s a couple of things that we can do to help boost the bad appraisal.
So in order to help you out, there are a couple of tweaks that you can make.
So first, what you need to do is if you have an appraisal that’s not supported.
You have to ask the lender if you can order another one.
They might say yes. They might say no.
Not all lenders support getting a second appraisal.
If they say yes, obviously, and move forward with the appraisal and you go from there, hopefully the second appraisal is good.
I’ve seen it. It’s very rare, but I’ve also seen it happen where the second appraisal was worse.
Usually it’s better because sometimes, you know, the first appraiser that went out there is that the lender is the on the order of the appraisal.
The first appraisal that comes out is is the one that they assign it to.
And sometimes those ones that are the very first ones out there, not all the time, but sometimes it’s because they’re slower, because they don’t get as many appraisal calls, maybe because they’re not as good.
Right. So you have to know these things. But anyways, that’s part of life. Part two is if the lender says no, we will not allow you to get a second appraisal.
Then what you have to do is dispute the first bad appraisal.
So you go to the appraiser and you get your realtor involved as well, and you ask the client’s realtor to get us a list of all of the comparables that compare to this property.
And we present that to the appraiser and dispute the value. And sometimes it’s probably a 50/50 chance of success in disputing the bad appraisal.
We’ve been successful at getting the values increased, and the other times the appraisers didn’t, you know, do their job fairly.
It could be that you are overpaying for the house, right?
That that is a plausible concern. So sometimes you are overpaying and the value of the house changed.
Okay. So these are things that you can do to help yourself, especially if it’s a firm deal you want to purchase.
Talk to a Mortgage Professional
It can be difficult to look at a bad appraisal and find a route forward sometimes.
After all, sometimes the only reason you get a bad appraisal is because your property is worth less than you thought.
However, that is not always the case, so it is always worth a second-look.
We’ve a wide variety of bad appraisals and negative appraisal examples that have been overturned by using comparables or alternative appraisers that work with different lenders.
So, if you want to see if you may be able to overturn a bad appraisal, we want to try to help you.
Simply click the link below to book a free strategy call with our team at LendCity and we will help you weigh your options and find the best option to move forward together.