Attention Realtors: How to Properly Dispute Bank Values

How to Properly Dispute Bank Values

Much more frequently than in the past, property valuations completed by lenders are being returned with figures higher than “fair market value”.  It is then the responsibility of offices like ours to submit documentation that proves that the bank-determined value is too high.

The following list provides guidance on what documentation is acceptable for such disputes:

 Comparables:

  • No farther than 5 miles from subject property;
  • Similar square footage and living space;
  • Same number of bedrooms and bathrooms;
  • Similar age ;
  • Sold homes that closed within 6 months of lender’s valuation (Non-distressed (no short sales, no foreclosures, no REOs)

** Explain any difference between subject property and comparable in a typed letter addressed to the lender.  Do not submit a comparable that isabove the price of the current offer.

Repairs-

  • Address only structural issues, not cosmetic;
  • Provide one repair estimate per item from a licensed contractor; and
  • Supply colored pictures that show damage to the home

Appraisal

  • Best means of disputing a value
  • Needs to be current
  • Offer under review should reflect appraised value, or close to it

Bratton Scott is very experienced in negotiating value disputes and has successfully overturned hundreds of high bank-determined values.  If you have any questions or concerns, please reach out to our short sale department at 856-857-6007 today!