House Bill 1151, introduced in Maryland on March 15, 2025, aims to enhance the appraisal process for residential real estate, particularly for homeowners seeking to refinance their mortgages or establish home equity lines of credit. The bill allows homeowners to submit additional information to lenders if the initial appraised value falls short of their expectations. This information can include comparable sales data, which the lender is then required to forward to the appraiser for reconsideration.

Key provisions of the bill stipulate that both the buyer and seller have two business days to provide this additional information. Furthermore, appraisers must consider a cost approach when reassessing the property value. Importantly, any additional appraisal or reconsideration resulting from this process must be provided to the seller at no cost.

The bill also mandates that training and continuing education for licensed appraisers in Maryland include the new requirements outlined in the legislation. This aims to ensure that appraisers are well-informed about the updated processes and standards.

While the bill has garnered support for its potential to empower homeowners and improve the appraisal process, it has also sparked debates regarding its implications for the real estate market. Critics express concerns that the changes could lead to inflated property values, complicating the lending process and potentially impacting housing affordability.

As the bill moves forward, its economic implications could be significant, particularly in a housing market where appraisal discrepancies can hinder transactions. If enacted, House Bill 1151 is set to take effect on October 1, 2025, marking a notable shift in Maryland's approach to residential property appraisals. The outcome of this legislation could influence not only homeowners but also lenders and appraisers across the state.