Home Appraisal FAQs - Appraisals How do I dispute the Appraisal Value?
How do I dispute the Appraisal Value?

Appraisal Report ContentsAny dispute or appeal for a change in the value of an appraisal must be made directly to the lender representative. In order to comply with federal laws and proper ethics, the appraiser can not be contacted directly by any interested party to discuss the value of an appraisal. Most lenders and engagement letters forbid an appraiser from discussing the appraised value or appraisal contents with any party.

Most appraisers welcome being supplied a list of recent improvements and renovations before the inspection or at the time of inspection. This is often helpful in comparing the subject to the recent neighborhood sales. Supplying of recent comparable sales and supporting documentations, especially private sales or builder direct sales, can also be helpful. However, any discussion of the subject value should be off-limits.  

Once the appraisal value has been supplied to the lender, all discussions must be directed to the lender. To file a Value Appeal at this stage, you will need to provide current market evidence and rational to support an increase in the value.

It is suggested, comparable sales being supplied to the lender should meet the following lender requirements:

  • Limited the number of comps to the three to six most recent sales (within 3 to 6 months of closing).
  • In the same development or neighborhood (neighborhood = within 12 blocks - urban, 1 mile - suburban and 5 miles - rural).
  • Similar style (if subject is a colonial; supply colonial comps).
  • Gross Living Area size (no more that a 25% difference in GLA from subject).
  • Condition - similar renovations and updates.
  • Lot size – site area should not differ more that 25%.
  • Amenities (pools, patios, porches, etc.). 
  • Sales concessions should be adjusted to reflect the net to the seller.
  • Comps should support the contract price after all adjustments.  

The lenders policy will dictate how they will process your Value Appeal. Additional comparable sales should be provided in a format similar to the comparable sales grid in the URAR appraisal form. In addition, there should be a brief narrative attached that describes the similarities/differences between the pending sale and the subject.


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