Can I challenge a low appraisal?
Can a low appraisal be overturned? Yes — and here’s how to force a fair value fast.
Why a low appraisal happens
A low appraisal doesn’t mean your home is worth less forever. Appraisals can miss facts. Appraisers rely on sales comparables, condition notes, and local market trends. If comps are outdated, misselected, or if upgrades aren’t documented, values drop. Often appraisals fall 5–15% below market because of poor comps or ignored renovations.
Immediate steps to challenge a low appraisal
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Review the report line by line. Look for wrong square footage, incorrect bedroom/bath counts, or missed upgrades like new roof, HVAC, or finished basement. These items change value.
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Gather hard evidence. Pull recent comparable sales (within 90 days if possible), listing histories, invoices for renovations, and quality photos showing upgrades and curb appeal.
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Ask the lender for an appraisal review or reconsideration. Lenders can order a second review or new appraisal when you provide solid proof. Don’t ask emotionally — present data.
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Order a second opinion from a licensed appraiser. A paid “check” appraisal can highlight mistakes in the original and give the lender a professional counter-point.
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Negotiate options. If the lender won’t budge, use the report to renegotiate price, ask the seller for a credit, or adjust your offer. Many deals survive a low appraisal when the buyer, seller, and agent act quickly.
What wins an appraisal challenge
- Recent, stronger comps closer in location.
- Clear proof of upgrades with receipts and photos.
- Evidence of market movement (multiple pending sales above closed comps).
- Errors in the original appraisal, like wrong lot size or condition grade.
A single accurate comparable sale can shift value by thousands.
Common mistakes to avoid
- Acting emotionally. Lenders need facts, not feelings.
- Submitting weak comps or opinions from online sites without verified sale data.
- Waiting too long. Timely challenges get traction; delays lose leverage.
Real-world example
A Toronto bungalow appraised $50,000 low. The buyer’s agent compiled three better comps and invoices for a new kitchen and roof. The lender ordered a review and adjusted the value upward, saving the deal. That’s not luck — that’s method.
Final play: use an expert who knows the system
Challenging a low appraisal is a process. You need precise comps, clear documentation, and a lender-focused presentation. A skilled local realtor knows where to find overlooked comps, how to package evidence, and how to push the lender for a review.
Ready to fight a low appraisal and protect your sale or purchase? Contact an experienced local realtor who wins these fights regularly. Email tony@sousasells.ca or call 416-477-2620. Visit https://www.sousasells.ca for proven results.
