Example of a format for challenging a low appraisal

June 5, 2012 ATTN: [Lender Name] Subject Property XXXX La Cienega Drive North Highlands, CA 95660 After reviewing the appraisal for XXXX La Cienega Drive by [Appraiser Name], I would like to request further clarification and investigation by the appraiser. I would also like to ask for a reconsideration of value based on the following points: Critique Comp 1 (if necessary) with specific points (example on following page). Critique Comp 2 (if necessary) with specific points (example on following page). Critique Comp 3 (if necessary) with specific points (example on following page). Critique any listings used in the appraisal report In your critique, make sure to focus on comp selection, adjustments and items that impact value (as opposed to minor errors or typos that are not the main issue at hand): - Did the appraiser use sales similar to the subject in condition? - Is there a difference in the level of upgrades between the subject and comps? - Are the neighborhood boundaries correct? - Is there any big difference between the reported square footage and bed/bath count in the appraisal report in comparison to what you know to be accurate about the subject property? - Is there a difference between distressed and traditional sales in the neighborhood? - Are there any major location differences unaddressed? Busy street? Next to gas station? - Are current listings similar to recent sales? Provide new potential comparable sales to ask the appraiser to consider.

Closing Paragraph: Summarize your main points and your opinion of the value in the report. Use something like, Overall the final opinion of value appears to be reconciled to the lower end of the market range and is out of sync with the expectation of market participants based on the points above. I would humbly ask the appraiser to take a second look at the information above as it relates to data and adjustments in the appraisal report. I appreciate your time and consideration, and I can be reached with any further questions at 916-XXX-XXXX. Respectfully,
Your Name Your Company TEL (916) XXX-XXXX

Your Company Name 179 Main Street Sacramento, CA 95820 Phone: 916-XXX-XXXX This form was developed for clients asking for help by www.SacramentoAppraisalBlog.com

Example of a format for challenging a low appraisal

June 5, 2012 ATTN: [Lender Name] Subject Property XXXX La Cienega Drive North Highlands, CA 95660 After reviewing the appraisal for XXXX La Cienega Drive by [Appraiser Name], I would like to request further clarification and investigation by the appraiser. I would also like to ask for a reconsideration of value based on the following points: An adjustment of $10,000 was given to Comp 1 due to the subject having superior updates, but this adjustment seems minimal and not market-derived. Comp 1 has an original kitchen, original bathrooms, and is generally outdated. The subject property has been completely remodeled throughout. Why was Comp 1 given the most weight in this report despite having an original kitchen, original bathrooms and overall being outdated? Comp 2 is similar overall in condition, but the subject property does have a brand new driveway. It is important to note that Comp 2 is located near an entrance street and therefore has increased traffic flow, whereas the subject street is deeper in the neighborhood. An inferior location for Comp 2 seems to play a role in the market, especially when considering a model match property (7653 Sweetness) went pending at $117,000 after only 16 days of market exposure. Comp 3 was given a site adjustment, but this adjustment does not appear supported. Comps 1-2 have smaller lots, yet sold at higher levels. This shows the market is not willing to pay more for properties with a larger lot size all the time. Its also important to note that Comp 2 is located off of a main entrance street to the neighborhood. This property sold as an REO and was discounted as a sale due to being bank-owned. Comps 4-5 as pending listings seem to support a higher value than the appraised value. Why did the appraiser give less weight to the listings? If they close at $115,000, would that change the value? 7649 23rd St closed at $115,000. This property has a slightly superior GLA, overall similar updates, but one huge difference is that it has no garage. What does the appraiser think of this property for use as a comp? 4863 Sugar Way closed at $117,000. This property is a model match to Comp 2, which sold at $115,000. What does the appraiser think of this property for use as a comp?

Overall the final opinion of value appears to be reconciled to the lower end of the market range and is out of sync with listings mentioned in the appraisal report as well as additional sales and data mentioned above. I would humbly ask the appraiser to take a second look at the information above as it relates to data and adjustments in the appraisal report. I appreciate your time and consideration, and I can be reached with any further questions at 916-XXX-XXXX. Respectfully,
Your Name Your Company Your Company Name 179 Main Street Sacramento, CA 95820 Phone: 916-XXX-XXXX This form was developed for clients asking for help by www.SacramentoAppraisalBlog.com