When might a lender require a second appraisal?

A lender may require a second appraisal primarily when the property has undergone significant changes. This could include substantial renovations, additions, or other modifications that may have affected the property's value since the first appraisal was conducted. Significant changes can alter the marketability or worth of the property, making it essential for the lender to have an updated assessment to ensure the loan amount aligns with the current property value.

In some cases, a lender might also seek a second appraisal if there are discrepancies with the first. However, the primary justification is tied to the condition and valuation of the property, highlighting the importance of accurate and current appraisals in the lending process. This requirement helps protect the lender's investment by ensuring that the property serves as adequate collateral for the loan amount.