What to Do when a Property is Undervalued?

14 de February de 2025

One of the keys when applying for a mortgage or putting a property up for sale involves its appraisal, which is crucial nowadays. Sometimes, the appraisal may not be what was expected and may have a lower result. This can generate some concerns about how to proceed.

Below, we will explore three common cases of low appraisal and offer some tips on how to handle each circumstance.

Contenido

1 First case: Mortgage Appraisal
2 Second case: Real Estate Appraisal or Property Valuation
- 2.1 Buy your Official Appraisal for Mortgage
3 Third case: Contradictory Expert Appraisal or Cadastral Discrepancy

First case: Mortgage Appraisal

A mortgage appraisal is an evaluation carried out by a financial institution when you apply for a mortgage loan. If the appraisal is lower than expected, measures must be taken to avoid affecting the mortgage process. Here are some steps to consider:

Understand the appraisal: Before taking action, you must understand the details of your mortgage appraisal. Review the report in detail to identify the factors that contributed to the low rating.

Submit additional information: Provide the appraiser with additional information to support the estimated value of a property. Document any improvements, updates, or unique features that may not have been considered.

Negotiate with the lender: Initiate a conversation with your lender to discuss the appraisal. If the evidence is conclusive, some financial institutions may reconsider or adjust the evaluation results.

Second case: Real Estate Appraisal or Property Valuation

When you are looking to sell your property and the appraisal is lower than expected, it is crucial to manage the situation strategically. Here are some suggested steps:

Consult different valuers: Listen to opinions from different appraisers and compare the appraisal results. This can help identify potential biases and determine if the initial assessment was accurate.

Make improvements to the property: Consider which improvements will increase the value of your property. This may include repairs, renovations, or cosmetic improvements to attract potential buyers.

Reassess the sale price: If the appraisal indicates that the sale price is lower than expected, adjust your expectations and offer based on them to attract buyers.

Buy your Official Appraisal for Mortgage

Valid for any financial institution with which you want to apply for financing.

Request Appraisal

Third case: Contradictory Expert Appraisal or Cadastral Discrepancy

When there is a cadastral discrepancy or disagreement with the expert appraisal, it is necessary to address this situation in a legal and technical manner. Here are some actions we suggest you take:

Consult an independent expert: Seek the opinion of independent experts to assess the differences. An expert can provide you with an impartial perspective and support your position in the event of a dispute.

Initiate a contradictory expert appraisal: In some countries, you will be allowed to initiate a contradictory expert appraisal to resolve discrepancies regarding the cadastral value. This process is likely to require the intervention of competent professionals and authorities.

Review documents and records: Make sure you have all the necessary documents, records, and evidence to support your claim during the contradictory expert appraisal process.

In conclusion, facing a low property appraisal can be challenging, but addressing the situation with knowledge and strategy can help you find solutions. Whether in the context of a mortgage, a real estate sale, or a cadastral dispute, taking informed measures is essential to protect your interests.