In the realm of real estate, property appraisals play a pivotal role in determining the market value of a home. Appraisals are conducted by licensed professionals and serve as a vital tool in the buying and selling process.

However, there are instances when sellers may disagree with the appraisal value, believing it to be too high and potentially affecting the sale of their property. In this blog, we will explore the circumstances under which a seller can challenge an appraisal and the steps involved in this process. Let’s delve into the intricacies of navigating an appraisal dispute and understanding the seller’s rights.

  1. Grounds for Appraisal Challenge

When a seller receives an appraisal that they believe overvalues their property, they may choose to challenge it. However, a mere difference in opinion is not sufficient grounds for a challenge. To have a legitimate case, sellers must be armed with solid evidence to support their claim. Some common reasons to challenge an appraisal include:

a) Comparative Market Analysis (CMA): Sellers can conduct their own Comparative Market Analysis to find recent comparable sales in their area that align more closely with their property’s value.

b) Errors or Omissions: Appraisals are not infallible, and human errors can occur. Sellers should review the appraisal report thoroughly for any inaccuracies or missing data that could skew the value.

c) Property Upgrades or Repairs: If the appraiser overlooked significant upgrades or recent renovations that enhance the property’s value, sellers can provide evidence to support their claims.

d) Local Market Trends: Real estate markets can be dynamic, and the appraiser might not be fully aware of current trends or neighborhood developments that could affect the property’s value.

  1. Gathering Supporting Documentation

Before challenging an appraisal, sellers must gather all relevant documentation to present a compelling case. This documentation may include:

a) Recent Sales Data: Obtain information on recently sold properties in the neighborhood that are comparable to your home. This data should include details like square footage, number of bedrooms and bathrooms, and other relevant features.

b) Appraisal Report Review: Carefully review the appraisal report for factual errors or omissions. Note any discrepancies that could impact the final value.

c) Home Improvements Documentation: Compile records of any significant improvements or repairs made to the property, including receipts, permits, and before-and-after photos.

d) Market Trends: Research and present data on local market trends, including supply and demand factors, recent sales, and any other relevant market insights.

  1. Requesting a Reconsideration

Once the seller has gathered all the supporting evidence, they can submit a formal request for reconsideration to the appraisal management company or lender. In this request, the seller should outline the grounds for their challenge and include the supporting documentation. It’s essential to present the case in a clear and concise manner, avoiding emotional arguments and focusing on factual information.

  1. Independent Appraisal Review

In some cases, sellers may opt to hire an independent appraiser to conduct a second appraisal of the property. This can provide an additional perspective and may strengthen the seller’s case if the second appraisal aligns more closely with their desired value.

  1. Negotiation and Resolution

Upon receiving the seller’s request for reconsideration or an independent appraisal, the lender or appraisal management company will review the case. If they find substantial evidence supporting the challenge, they may consider adjusting the appraisal value. In other cases, negotiations between the seller and buyer may occur to find a middle ground that satisfies both parties.


Challenging an appraisal is a complex process that requires careful consideration and strong supporting evidence. While sellers have the right to contest an appraisal they believe overvalues their property, doing so successfully involves diligent research, gathering documentation, and presenting a well-structured case. In some instances, seeking professional advice from a real estate agent or appraiser can provide valuable guidance throughout the process. Remember, open communication and negotiation between all parties involved can lead to a satisfactory resolution that ensures a fair market value for the property.