Lisa Mailhot | July 17, 2024
Buyers
In a volatile real estate market where prices have surged dramatically in some regions by up to 47% since 2020, securing a fair appraisal for your home is more crucial than ever. However, disparities in appraisal values can lead to significant financial dilemmas and even legal disputes. Let's talk about four pivotal strategies to help homeowners maximize their appraisal value, drawing on insights from fair housing expert Dr. Lee Davenport and recent industry developments.
1. Know Your Comparables
Before listing your property or considering refinancing, it's essential to be well-informed about your local market. Recent sales within your neighborhood are key indicators of your home’s potential market value. Real estate professionals typically equip their clients with this data to ensure they are well-prepared for a fair market evaluation. Keeping abreast of recent comparables within the last six months ensures you have realistic expectations and can argue your home's value effectively.
2. Know Lender Policy
When a buyer presents an offer, understanding the lender's appraisal dispute policies can significantly impact the negotiation. Should an underappraisal occur, it’s vital to know whether the lender offers a free reconsideration of value or if a second appraisal comes at an additional cost. These details can determine whether a transaction moves forward smoothly or encounters financial hurdles.
3. Know How to Report and Resolve an Issue
If discrepancies arise with the appraisal value, having quick access to resolution resources is crucial. Homeowners should be familiar with the Appraisal Complaint National Hotline and local fair housing centers to address concerns promptly. Being proactive about potential issues can save significant time and stress.
4. Know Which Lenders Can Help You
A robust network of lenders who have transparent and homeowner-friendly policies regarding appraisal disputes can be invaluable. Real estate agents can provide a service to their clients by maintaining a current list of such lenders, ensuring all parties are informed and prepared to address any valuation issues effectively.
Navigating the appraisal process requires more than passive acceptance of an appraiser’s initial report. It calls for proactive engagement, understanding the intricacies of the process, and having the right resources at your disposal. If you're planning to make a move in the vibrant real estate market of Orange County and you need a trusted partner to guide you through maximizing your property's value, let's connect.
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