Understanding appraisal adjustments and reconsiderations is essential for home sellers involved in a real estate transaction. These processes can influence the final sale price and the mortgage approval. Sellers should be aware of how these procedures work and their potential impact.
Appraisal Adjustments
An appraisal adjustment occurs when an appraiser revises the property's value based on new information or corrections. This can happen if initial data was inaccurate or if comparable sales change during the process. For sellers, understanding that adjustments can either increase or decrease the appraised value is important.
Reconsideration of Value
A reconsideration of value is a formal request made by the seller or the lender to the appraiser to review and potentially change the appraisal. This is typically initiated if the seller believes the appraisal undervalued the property. Providing additional comparable sales or correcting errors can support this request.
Key Points for Sellers
- Review the appraisal report carefully for accuracy and completeness.
- Gather supporting documentation such as recent comparable sales.
- Understand that reconsiderations do not guarantee a higher value.
- Communicate promptly with the appraiser or lender if discrepancies are found.
- Be aware of deadlines for requesting reconsiderations or adjustments.