When Can Your Lender Require a Second Appraisal?

Second Appraisal

Much like Texans themselves, the real estate market in Dallas/Fort Worth can be complicated and intense. Homes in the Metroplex are beautiful, valuable, and often sell extremely quickly. If you are applying for a mortgage and your lender requests a second appraisal for the home you’re buying, don’t panic. There are various valid reasons for requiring a second appraisal on a potential home purchase in Dallas, Fort Worth, or the surrounding area. For sellers, you’ll want to make doubly sure you’ve asked a fair and favorable price. And no one should consider buying any property without the knowledge that the appraisal was as spot on as possible.

Though it can be a bit disconcerting for a mortgage company or lender to request a second home appraisal, especially when you are trying to close, ultimately these processes are an instrument of good. Who knows? You might even learn that your house is worth more than you thought!

Good reasons for a second appraisal

If your mortgage company requires you to obtain a second home appraisal, it could be for one of the following reasons:

  • The AVM (Automated Valuation Method) is used by mortgage companies far and wide, and is known to be very inaccurate at times. This computerized system of determining home value does not always take into account everything it should.
  • The first appraisal is more than six months old. This can happen if your sale takes a long time, or if the real estate has been on the market for months or years.
  • The original appraisal might be significantly lower or higher in value to comparable homes in the surrounding area.
  • You are buying a “flipped” house.
  • You’ve taken out an FHA loan. For many reasons, FHA lenders may require a “second opinion.”

Asking for a second appraisal is not at all uncommon. It is also not a personal slight against you, the seller, or the original appraisal. These things happen, and are often just customary as part of the buying and selling of property. You’ll be grateful you got your second appraisal, especially if the value of the house turns out to be significantly different than in the first appraisal. You might just get your home for a better bargain!

Dallas Fort Worth real estate for discerning buyers & sellers

If you are considering purchasing a house in the greater Dallas-Fort Worth region, you would be wise to call Linda Peterson! She loves her community and will sell homes at many price points, helping you through the process, from appraisal to closing. She lights up when talking about your potential dream home in this great area.  Call her today at (817) 829-3000 or fill out an online contact form.