Do I have the right to receive a copy of my home appraisal?

Yes. You have the right to receive a free copy of your home appraisal for a first-lien mortgage.

For first lien and certain higher-priced mortgage loan applications, mortgage lenders are required to provide you with a free copy of all appraisals and other written valuations that provide an estimate of the value of your home. For first lien applications, lenders are required to send you a copy:

• Promptly after the appraisal report is completed, and no later than

• Three days before your loan closes

My appraisal is less than the sale price. What does that mean for me?

It is very risky to purchase a home for more than the appraised value.

A mortgage appraisal "redo" or challenge to correct a low valuation or fix a flawed report is officially called a Reconsideration of Value (ROV).

If you are asking about getting an entirely new, separate evaluation by a different professional, it is simply called a second appraisal or a reappraisal.

Common terms related to re-evaluating a property include:

• Reconsideration of Value (ROV): A formal request submitted through your lender asking the original appraiser to reassess their report using corrected facts or missed comparable sales.

• Second Appraisal: Ordering a brand-new evaluation from a completely different licensed appraiser, usually done by the lender if the first report has major, unfixable errors.

• Appraisal Review: A desk or field check where another expert evaluates the logic and math of the original appraisal without necessarily starting over completely.

Can the lender or the loan officer contact the appraisal company or the appraiser directly?

No, under no circumstances can the lender or the loan officer contact the appraiser directly. The ROV needs to be submitted by the processor to the appraisal company with supporting comparable(s) for review. The appraiser will not openly search more comparable properties after appraisal completion, they will only review submitted ROV request with supporting information/comparable(s)/errors to be reviewed.

First, get a copy of the appraisal

The appraisal is a professional opinion as to the value of the home you want to purchase.  Appraisers have to follow rules in arriving at the value of a property, and lenders are not allowed to interfere with the appraiser's judgment. The lender is required to send you a copy of the appraisal. If you haven't received a copy, ask your lender for it.  

A good next step is to ask the seller to reduce the price on the home

You can often use the lower appraised value to negotiate a reduction in the sales price of the home. The appraisal is strong evidence that the price was above the market value of the home.  

If the seller won't reduce the price on the home, you may want to cancel the sale

Consider your options.  Depending on the terms of your purchase contract, there may be costs associated with cancelling the sale.  However, these costs are likely small compared to buying a home that isn't worth what you paid for it.

What are appraisals and why do I need to look at them?

An appraisal is a written document that shows an opinion of how much a property is worth. 

The appraisal gives you useful information about the property. It describes what makes it valuable and may show how it compares to other properties in the neighborhood. An appraisal is an independent assessment of the value of the property.

When you borrow money to buy or refinance a home, your lender may need to get a new appraisal and may require you to pay for it. Your lender may also use other ways to check the value of the home. For a typical home loan (that is, a loan secured by a first mortgage on your residential real estate), you are entitled to receive a copy of appraisals and opinions of value your lender gets. You should receive them soon after they are delivered to the lender in complete form—no later than three days before closing.

You can’t be charged a fee for copies of an appraisal or other valuation. But you can be charged a reasonable fee for the lender’s cost of preparing the appraisal or other valuation.

I was told I'm buying a home that was flipped and that I have to get a second appraisal. How does that work?

If the home you’re buying is considered a “flip" and you’re getting a higher-priced mortgage loan covered under new mortgage rules, you will have to get a second appraisal.

A “flip” is when:

• You buy a home from a seller who bought the home less than six months ago and;

• You pay a certain amount more than the seller paid for the home:

  • 10 percent more if the seller bought the home within the past 90 days.

  • 20 percent more if the seller bought the home in the past 91 to 180 days.

When you buy a “flipped” home, your lender must pay for a second appraisal of the home that includes an inside inspection. The lender cannot charge you for this second appraisal.

Keep in mind that not all flips are subject to this requirement. For example, flips in rural areas are exempt because those areas might have fewer appraisers available. Also, properties acquired from a government agency are exempt.