So you’ve decided to refinance your mortgage. Good for you, refinancing can help your finances a lot. However, you first have to find out how much your house is worth. And to do that you need to appraise it. But what if you’re faced with a low home appraisal? What next? Do you give up on your refinancing dreams?
You don’t have to. A low home appraisal is a nightmare that can cause you a lot of problems. But you’re not helpless against it. After all, it’s just the appraiser’s opinion. Here’s some advice that might help you pass this ugly hurdle.
Prove to your appraiser that his opinion is wrong
First read your copy of the home appraisal. Next, compare your home to similar homes that have recently traded in your neighborhood. If you notice any big differences between the home values, it might be worth pointing them out.
If you provide the appraiser with data that he didn’t use before, he’ll have no other choice but to take a second look. He might not know all the homes that have changed hands in your neighborhood recently, as many homes sell without ever being listed.
Make sure that your appraiser used information from homes that traded in your neighborhood, in the past 90 days. This is extremely important!
A second opinion can never hurt
Getting a second opinion doesn’t guarantee that your home value will change for the better, but it might work. Appraisers can make mistakes. And these mistakes can cost you if you don’t discover and report them in time.
Point out home improvements
If you invested money to renovate or upgrade your home, then make sure that your appraiser knows it. He might miss the renovated kitchen, or the new bathroom, or the updated roof, or any other new features. But all of these add extra value to your home.
That’s why it’s important that you, the owner, are present at the time when the property is evaluated. This way, an appraiser can ask questions and you can answer them right away.
