What if You Disagree With a Bank Appraisal?

Disputing errors in a home appraisal can prevent a mortgage denial.

Disputing errors in a home appraisal can prevent a mortgage denial.

Disagreements over bank appraisals usually arise when homeowners and home buyers receive an appraisal that is lower than expected. The appraisal affects how much money a lender is willing to lend even if you and a co-borrower have a good credit rating. A lender won’t approve a mortgage or refinance one if a home’s appraised value is less than the loan amount. However, you can dispute a low appraisal, or get it redone, to avoid losing a loan.

Review the Appraisal

You can ask your lender to get another appraisal if you disagree with an appraisal, but examine the lender's appraisal report first to strengthen your case. For example, look for factual errors in the report. Miscalculating a home's square footage and citing the wrong number of bedrooms are examples of factual errors that can lower a home's value. Ask the lender to reconsider the appraisal if you find such errors.


Appraisers use comparable sales to determine the value of a home. Comparables are properties in your area that are similar in style and size to the home you're selling, buying or refinancing. Appraisers often use properties that recently sold as comparables. The appraisal report will show the comparables the appraiser used. Ask your real estate agent to look for different comparables if you disagree with the appraisal. Your agent may find higher-priced comparables than the appraiser did that you can use to dispute the appraisal with your lender.

Change Lenders

Consider submitting your loan application to another lender if you want to buy or refinance a home that received a low appraisal. Home values vary from one appraiser to another, even as appraisers try to maintain objectivity in their valuations. An appraisal done for another bank might come back with a valuation that is closer to what you think the home is worth. In any case, ask the new lender to ensure that someone who has knowledge of the area where the home is located does the second appraisal.

Canceling a Sale

Sales contracts usually allow home buyers and sellers to cancel a purchase agreement due to a low home appraisal. A low appraisal works in the buyer's favor because he can offer a lower price for the home. If you’re the seller, you might not want to reduce your selling price if you intend to buy another home with the proceeds. In such cases, you could risk losing a buyer and leave the home on the market while you get another appraisal to decide if your home is overpriced.

About the Author

As a former freelance writer for Writers Research Group, I have already written many eHow articles, and I understand how to create informative articles that read well in eHow style and rank well in search engines. I noticed the Demand Studios ad listed at JournalismJobs.com says Demand Studios offers writers thousands of titles, and writers can suggest titles as well. That appeals to me as a highly motivated writer because if I am hired, I would be eager to consistently write several eHow articles on a weekly basis and take on other writing assignments that may become available. Additionally, I have written how-to articles under my pen name, which is Frances Burks. The link below is to a guide I wrote under that pen name in a freelance project made available through Writers Research Group. Guide to Handbags http://www.work.com/handbags-4116/{{}}

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