Navigating Value Revisions in Appraisals
Q: "This is happening more and more, and I'm getting really frustrated. After I submit an appraisal, the underwriter often comes back with “alternate sales” they want me to consider. I can't even remember the last time one of these so-called “alternate sales” was a decent comp. Often, they're clearly inferior—maybe in worse condition, with fewer upgrades, or they sold a long time before the subject property. In these cases, it feels like they're trying to push me to lower my valuation.
Then there’s the opposite situation. I’ll submit a report, and the underwriter will bring up other sales that are far superior—maybe in gated communities, new construction, or completely renovated. It seems obvious they’re trying to get me to increase the value.
This process takes up a lot of time, and no one is offering extra pay for it. I can’t be the only one frustrated with this. Can’t I refuse? It feels like a blatant attempt to influence the value. If they want this additional work, shouldn’t I be compensated?
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A: Asking the appraiser to reconsider value or to review some additional sales is generally reasonable. In many cases, the sales are not coming directly from the lender; rather, they are being offered by one of the parties to the transaction. Requests of this nature are quite common.
If a particular client repeatedly asks you to include specific sales or pressures you to alter your report, that could be grounds for claiming “undue influence.” However, that doesn’t seem to be the situation described here.
This does happen regularly. Appraisers are asked by their clients to consider other sales or to reconsider value. The requests might originate with one of the parties or it could come from FNMA. While these requests might be time consuming and frustrating, they rarely rise to the level of undue influence.
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