What a home appraisal is and why it matters to your finances
A home appraisal is a written estimate of what your house is worth, ordered by your lender before they approve a mortgage. The appraiser is a licensed professional who inspects the property, compares it to similar homes that sold recently in your area, and produces a report with a dollar value. That number determines how much money the lender will give you — if the appraisal comes in lower than the purchase price, you either pay the difference out of pocket, renegotiate the sale, or walk away from the deal.
Appraisals can be wrong. An appraiser might miss recent renovations, undervalue your neighborhood, use outdated comparable sales, or make calculation errors. If you believe the appraisal is too low, you have the right to challenge it. The process is straightforward but has specific steps and timelines you need to follow.
Key Takeaways
- You can request a reconsideration of value from your lender at no cost, usually within 10 to 14 days of receiving the appraisal report.
- A reconsideration requires written evidence: recent comparable sales in your neighborhood, documentation of recent repairs or upgrades, and a letter explaining the discrepancy.
- If the lender denies your reconsideration, you can order a second appraisal at your own expense, typically costing $400 to $600.
- Some lenders allow you to challenge the appraisal before closing; others require you to do so after you own the home, which limits your options.
- The appraiser themselves cannot change their report based on your complaint — only the lender or a new appraisal can override a low valuation.
Requesting a reconsideration of value from your lender
A reconsideration of value (sometimes called a reconsideration of value request or ROV) is a formal ask to your lender to have the appraisal reviewed for errors. You do not pay for this. The lender sends your written request to the appraiser or to a senior appraiser at the appraisal company, who reviews the original report and your evidence to see if the valuation should change.
You must submit your reconsideration request in writing — email, fax, or certified mail to your lender's appraisal department. Include a cover letter that clearly states why you believe the appraisal is too low. Attach supporting documents: a list of comparable homes that sold recently in your area with their sale prices, photos or receipts for recent renovations or repairs, property tax records showing the assessed value, and any other evidence that the appraised value is inaccurate. The more specific your evidence, the stronger your case.
Timing matters. Most lenders require you to submit a reconsideration request within 10 to 14 days of receiving the appraisal. If you are in the middle of buying a home, ask your real estate agent or loan officer for the exact deadline. The lender will typically respond within 5 to 10 business days, though some take longer.
What evidence to gather before you submit
Comparable sales are the strongest evidence. Find homes in your neighborhood that sold within the last three to six months and are similar to yours in size, age, condition, and lot size. Real estate websites like Zillow, Redfin, and Realtor.com show recent sales prices. Your real estate agent can pull a more detailed market analysis report. Print or screenshot the listings with the sale price, sale date, and key details. Aim for at least three to five comparables, and prioritize sales that are closer to your home's actual condition than the ones the appraiser used.
Documentation of recent work is your second line of evidence. If you renovated a kitchen, replaced the roof, updated electrical systems, or made other significant repairs, gather receipts, invoices, and before-and-after photos. The appraiser may have missed these improvements or underestimated their value. Include the date of the work and the amount you spent, though note that the appraiser may not add back the full cost — they value improvements based on what they add to resale value, not what you paid.
Property tax assessments and prior appraisals also carry weight. If your county assessor valued the home higher than the current appraisal, include that assessment. If you had the home appraised within the last year or two for refinancing or another purpose, and that appraisal was higher, include it. These documents show a pattern that suggests the current appraisal is an outlier.
Ordering a second appraisal if the lender says no
If the lender denies your reconsideration request or the appraiser makes only a small adjustment that still leaves you short, you can order an independent appraisal at your own cost. This appraisal is separate from the lender's appraisal and is yours to keep. A second appraisal typically costs $400 to $600, depending on your location and the size of the home.
Contact appraisers in your area directly — search online for "independent home appraiser" or ask your real estate agent for referrals. Make sure the appraiser is licensed in your state and has experience with residential properties in your neighborhood. When you call, explain that you want an appraisal for a value dispute, not for a lender. The appraiser will schedule an inspection, usually within a few days, and deliver a report within one to two weeks.
If your second appraisal comes in higher than the lender's, you can present it to the lender and ask them to reconsider. Some lenders will accept a higher independent appraisal; others will not. Before you pay for a second appraisal, ask your lender in writing whether they will consider one if it comes in higher. Get their answer in writing so you know what you are paying for.
When you can challenge an appraisal and when you cannot
If you are buying a home and the appraisal comes in low before closing, you have options: challenge it, renegotiate the price with the seller, or walk away. Most purchase agreements include an appraisal contingency that protects you if the home appraises for less than the sale price. Read your contract to see if you have this protection.
If you are refinancing your current home, a low appraisal can block the refinance entirely. You can still request a reconsideration or order a second appraisal, but if both come in low, the lender may deny the refinance. In this case, you can shop for a different lender, though most will order their own appraisal and may reach the same conclusion.
If you have already closed on the home and discovered the appraisal was wrong, your options are limited. You cannot force the lender to change their appraisal after closing. You can order your own appraisal for your records, but it will not affect the mortgage you already have. If you believe the appraisal was fraudulent or grossly negligent, you can file a complaint with your state's appraisal board, but this is a slow process and does not recover money.
Common reasons appraisals come in low
Appraisers sometimes use outdated comparable sales, especially in fast-moving markets. If homes in your area have been selling for more money in recent weeks, but the appraiser used sales from four or five months ago, the appraisal will be low. This is one of the easiest errors to correct with a reconsideration request — provide recent sales and explain the market shift.
Missed or undervalued improvements are another frequent problem. An appraiser might not notice a new HVAC system, updated plumbing, or a finished basement if the work was done recently or is not immediately obvious. They might also underestimate the value of upgrades — a new kitchen might add $30,000 to resale value, but the appraiser might count only $15,000. Photos and receipts help correct this.
Neighborhood bias or unfamiliarity can skew an appraisal. An appraiser who is not familiar with your area might undervalue homes because they do not know that the neighborhood is improving, that a new transit line is coming, or that certain blocks are more desirable than others. Local real estate agents and recent comparable sales are your best counter to this.
What happens after you challenge the appraisal
If your reconsideration request succeeds, the appraiser will issue a revised report with a higher value. The lender will update your loan file and move forward with the mortgage. If you are buying a home, this clears the way to close. If you are refinancing, you can proceed with the new loan terms.
If the reconsideration fails and you do not order a second appraisal, you are back where you started. For a purchase, you will need to decide whether to pay the difference, renegotiate with the seller, or walk away. For a refinance, the lender may deny the loan or offer you a smaller loan amount based on the lower appraisal.
If you order a second appraisal and it comes in higher, present it to the lender in writing. Some lenders will average the two appraisals; others will use the higher one; some will ignore it entirely. Ask your lender in advance what their policy is. If they refuse to budge, you can shop for a different lender, though you will likely have to pay for another appraisal with the new lender.
Frequently Asked Questions
Can the appraiser change their report if I send them evidence?
No. The appraiser cannot discuss the appraisal with you directly or change their report based on your input. All communication goes through the lender. Your evidence goes to the lender, who forwards it to the appraiser or a review appraiser. Only they can decide to revise the report.
How long does a reconsideration of value take?
Most lenders respond within 5 to 10 business days, though some take up to two weeks. If you are in the middle of buying a home, ask your loan officer for an exact timeline so you know whether you will have an answer before closing.
What if I disagree with the second appraisal too?
You can order a third appraisal, but most lenders will not consider more than two. At that point, you are paying for appraisals without a clear path forward. If two independent appraisals come in low, the market may genuinely support that lower value, or you may need to accept the lender's position and explore other options.
Do I have to pay for a reconsideration of value?
No. The lender pays for the reconsideration review. You only pay if you order your own independent appraisal, which typically costs $400 to $600.
Can I challenge an appraisal after I close on the home?
You can order your own appraisal for your records, but you cannot force the lender to change their appraisal or the loan terms after closing. If you believe the appraisal was fraudulent, you can file a complaint with your state's appraisal board, but this is a separate process and does not recover money or change your mortgage.