Nevada Real Estate >> Las Vegas Real Estate Specialist: Buying a Home in Las Vegas: Appraisal Reconsideration Request

Buying a Home in Las Vegas: Appraisal Reconsideration Request

Las Vegas Low Home Appraisal – What is a Reconsideration Request?

When financing is involved on buying a home in Las Vegas, more than likely an appraisal will be a required item and contingency for the home purchase.  There are only Sell Your Las Vegas Home Quick!a few exceptions and homepath financing is one of them.

Many times the home will not appraise at the contracted price and that poses a problem.  You have several options at this point when your Las Vegas home appraisal comes in low:

  • Reconsideration Request
  • The buyer makes up the deficiency by putting extra money as a down payment
  • The seller lowers the price to the appraised value
  • The buyer and seller re-negotiate the contract and meet somewhere in the middle
  • The buyer and seller cannot come to terms and decide to cancel the contract

All options should be exhausted BEFORE the contract is cancelled!  The first option the buyer or seller should use is the “appraisal reconsideration request”.  The request comes from the buyer’s lender.

All agents involved in the transaction should go through the appraisal with a fine tooth comb to look for errors.  Potential errors in an appraisal – just to name a few – may be:

  • Incorrect comparables
  • Old comparables (more than 3-6 months old)
  • Distressed comparables used on a non-distressed sale
  • Comparables with very low days on market
  • Condition adjustments
  • Upgrade adjustments
  • Seller paid concession adjustments

Your goal is to respond to the appraiser with new comparable suggestions and in a professional manner.    The reconsideration request should be well thought out and use big “appraiser” words like “paired analysis”.  When I work on an appraisal request, I am ripping apart the appraisal report and NOT the appraiser.

The goal is to have the value adjusted appropriately or plea to have the report “thrown out” (in the event it is a REALLY bad appraisal!)  Not all appraisals warrant a reconsideration because they are great reports and well thought out and there are just no other comparables to support a reconsideration.

Whatever route you take when you have a low appraisal, this should be the first course of action with your agent!

The question of “what is your appraisal reconsideration success rate” should be a part of your interview when you hire your Las Vegas real estate agent.  Not all agents can do these or know this option exists.  Our team success rate is 65%.

 


Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

copyright 2006-2013 Renee Burrows, REALTOR®, Savvy Home Realty Solutions  702-966-2494

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Comment balloon 11 commentsRenée Donohue~Home Photography • July 10 2014 04:55PM

Comments

Renee

It seems these days appraisals can be such a sticky item with lenders

Posted by Tom Braatz Waukesha County Real Estate 262-377-1459, Waukesha County Realtor Real Estate agent. SOLD! (Coldwell Banker) over 5 years ago

Renee, a beautiful read today, that was packed full of great points about our industry. Looking forward to others.

Posted by Winston Heverly, GRI, ABR, SFR, CDPE, CIAS, PA (Winston Realty, Inc.) over 5 years ago

Good morning Renee. I have fought many appraisal battles with the help of the Realtors. I have gotten many appraisals corrected, no it is not easy, but worth the effort. Excellent post, suggested.

Thank you for commenting on my posts.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) over 5 years ago

The key is looking at the comparables and the subject and finding an error or omission that is not showing in the MLS or public records.  Once an error (or more) is found, the odds of getting new and betterappraisal are greatly increased.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 5 years ago

Renee, getting an appraisal changed is an uphill battle but you're right. All options should be exhausted before a contract is cancelled. Better for both parties to try and work it out. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) over 5 years ago

Hey Renee...great post as always. Thanks for the kind words the other day!

Posted by Jeffrey DiMuria 321.223.6253 Waves Realty, Florida Space Coast Homes (Waves Realty) over 5 years ago

Thanl you all for stopping by!

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) over 5 years ago

Joe - I imagine not too many of my collegues do this - either they don't know this is an option or they do not have the experience!  Any movement we can get on a low appraisal is always great!

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) over 5 years ago

Gabe - yep!  Those are my favorite because you know it will fly with getting the appraisal tossed no matter how the appraiser responds!

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) over 5 years ago

Amanda - try and you really have nothing to lose!

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) over 5 years ago

Jeffrey - you are welcome - let me know if you need any assistance with that project!

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) over 5 years ago

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