How can I challenge an appraisal that seemed incomplete and biased against my interests? – North Carolina

Short Answer

In North Carolina, you challenge a questionable appraisal by promptly asking your lender for a Reconsideration of Value (ROV) and supplying concrete corrections (bad measurements, omitted comparable sales, condition errors) and supporting documents. If bias or serious standards violations are at issue, you can also ask the lender to assign a different appraiser and consider a complaint to the North Carolina Appraisal Board. Move fast—lenders often require ROVs before closing or your due diligence deadline.

Understanding the Problem

You are buying a home in North Carolina and need to know how to challenge an appraisal that looks incomplete or unfair. The decision point is: as the buyer, can you push back on an appraisal before closing, and how? One key fact here is that the appraiser measured only a shed and not the main dwelling, which raises concerns about accuracy and scope.

Apply the Law

Under North Carolina law, appraisers must be credentialed and follow professional standards. Buyers generally cannot direct or pressure an appraiser, but you can ask your lender to review the appraisal, correct factual errors, and, where warranted, order a second appraisal or reassign the work. You are entitled to receive a copy of the valuation before closing under federal lending rules; lenders and loan programs set specific timelines, and many require any ROV request promptly after delivery and before closing. Appraisal bias or conflicts should be raised with the lender and, if serious, reported to the state board that regulates appraisers.

Key Requirements

• Show specific errors: Identify concrete mistakes (square footage, bedroom/bath count, condition, omitted updates, wrong lot size, missing permitted space) and provide proof.
• Offer better comparables: Provide recent, nearby, like-kind sales the appraiser may have missed, with MLS sheets or public records.
• Use the lender’s process: Submit a Reconsideration of Value through your lender (or AMC), not directly to the appraiser.
• Raise independence/competency concerns: If the scope was unreasonable or bias is suspected, ask for reassignment or a second appraisal through the lender.
• Meet timing: File the ROV quickly—typically within days of receiving the appraisal and before your due diligence expiration or closing.
• Escalate when appropriate: Serious standards violations or bias can be reported to the North Carolina Appraisal Board; broker conduct issues go to the North Carolina Real Estate Commission.

What the Statutes Say

• North Carolina Gen. Stat. Chapter 93E (Real Estate Appraisers Act) – establishes appraiser licensure, standards, and discipline.
• North Carolina Gen. Stat. Chapter 93A (Real Estate License Law) – governs broker duties, supervision, and disciplinary authority.
• North Carolina Gen. Stat. Chapter 45 (Mortgages and Deeds of Trust) – addresses lien payoff and satisfaction practices relevant to closing.

Analysis

Apply the Rule to the Facts: As a North Carolina buyer facing an appraisal where only a shed was measured and personal belongings were extensively photographed, ask your lender for the full report immediately and request a Reconsideration of Value. Point out the measurement and scope errors, provide correct square footage and reliable comparables, and ask for reassignment if you suspect bias. Because closing is pending and payoff logistics affect title clearance, coordinate with your closing attorney to keep timelines on track while the lender processes the ROV.

Process & Timing

1. Who files: Buyer to lender (or the lender’s appraisal management company). Where: Your lender’s valuation/ROV portal or designated email. What: Reconsideration of Value request with a concise error list, replacement comparables (MLS/public records), measurements, permits, repair invoices, and photos. When: Submit as soon as you receive the report and before your due diligence deadline or closing.
2. The lender reviews the submission, sends it to the appraiser for reconsideration, or assigns a different appraiser if independence/competency concerns exist. Processing often takes several business days; timing varies by lender and program.
3. Final step and outcome: You receive a revised appraisal or confirmation with no change. If issues persist, discuss contract options with your attorney and, for serious conduct concerns, consider a complaint to the North Carolina Appraisal Board; broker conduct concerns go to the North Carolina Real Estate Commission.

Exceptions & Pitfalls

• Different loan programs (conventional, FHA, VA) impose their own appraisal rules and timelines; some limit second appraisals.
• Contacting the appraiser directly can violate independence rules; route all requests through your lender.
• Unsupported claims of bias rarely move the needle; provide objective errors and market data.
• Missing your contract’s due diligence deadline can undercut your leverage even if the appraisal is flawed.
• Privacy concerns about photos should be raised with the lender, but appraisers often document interiors; focus on relevance and necessity tied to value.
• Unresponsive brokers: escalate to the firm’s Broker-in-Charge to protect timelines and ensure proper communication.

Talk to a Real Estate Attorney

If you’re dealing with a low or flawed appraisal that threatens your North Carolina closing, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.