Real Estate experts at Simplythebestloans.com write on lenders rejecting appraisals:
Appraisals: It’s about the Property, Not your Loan!
One of the newest issues with many loans today is lenders reviewing and rejecting appraisals. The appraisal is a ”defensible” and carefully documented opinion of value. Most commonly derived using recent sales of comparable properties by a licensed, professional appraiser. Since the real estate market has been extremely heated in my area, property values have soared at a rapid rate. Lender’s are beginning to question these values and whether or not they’re realistic.