10 Steps Houston First Time Home Buyers Should Know to get a Fair House Appraisal
Image taken by Diana for Firsthomehouston.com
Millions of race related appraisal bias were recently uncovered by the Federal Housing Financing Authority which resulted in a newly formed Property Appraisal and Valuation Equity task force to develop recommendations to eliminate racial and ethnic bias in the appraisal process. If you are a home owner and is concern about getting a fair appraisal there are a few things you should know as well as things you and your agent can do.
The lender is responsible for hiring the appraiser when you apply for a mortgage and also when you refinance your home.
You can, and should ask your lender about their fair housing protocols as well as bias training, in addition to the criteria they use for selecting appraisers.
You should also ask for the qualifications of the appraiser.
The mortgage lender is required to send you a free copy of the appraisal report at least three days before the loan closes. The report should include what the appraiser considered when valuing your property.
You have the right to submit a reconsideration of value if you do not agree with the value the appraiser placed on your home.
Make sure you review the report thoroughly once you receive it to make sure there are no errors or missing information.
The process to dispute an appraisal, varies by mortgage lender, but you will generally need to submit written information to the lender along with supporting evidence as to why you believe your appraisal is incorrect.
Rely on your agent for guidance.
Your agent can and if necessary, should provide the appraiser with comparable home sales.
In a 2022 appraisal survey, 47 percent of real estate professionals say they had transaction that did not close due to the appraisal process. So please do not think that you are alone.
If an appraiser say your home is worth X, and you believe that the appraiser took things into consideration such as the color of your skin, your origin, your religion, or other things of which you have no control over, you can do something about it.
If you believe the appraisal was unfair, you can request a second appraisal. You also have the right to file a complaint with the Appraisal Complaint National Hotline, U.S. Department of Housing and Urban Development, Consumer Financial Protection Bureau as well as the local housing and civil rights authorities.
We hope you enjoyed your visit with us today. As always, thank you so much for stopping by. Until next time…Diana.
Source: National Association of Realtors