Owner Ordered Appraisal

[49ergirl]

co-worker paid for an appraisal on a home he currently owns. no finance company involved or court orders...he's in the midst of a divorce and wants 50/50 split. he thinks the price is low and asked my opinon.....not that either of us are experts. In researching - I pulled current listings, recent sold listings to submit when asking for reconsideration. upon review of the report, there are NUMEROUS mistakes. not just mistakes in sq. ft or room count, upgrades but other things:

Parcel #
CC&R (report states none) which is incorrect
sq ft listed in site description under topography is incorrect although correct in other areas
site elements (report states corner lot) when in fact its a cul de sac
number of stories (report sates 2). single story

I could on and on, it's as if he pulled a copy of a previous appraisal and only changed 1/2 the information. even some pages (definitions of scope and work) the addess listed for the client is wrong.

There's abunch of other mistakes and while I feel these reports should be accurate, it's gotten to the point where I can't even tell if i'm being nit-picky and what should and shouldn't be requested when he submits an email for the appraiser to reconsider his findings.

some of the addendums are missing, it seems as this report also contradicts his reasons for the figure he came up with. And lastly, the house he weighted as 1 in relation to co-workers property was a cash sale by the kids that inherited the property. Antoher comp is from March and in my opinion, the comps i found (all within the same side of the subdivision) are more recent and relevant then the ones he used.

any suggestions or advice on how to tactfully go about getting the whole thing re-done, fixed or just corrected is appreciated

 

[hastalavista]

any suggestions or advice on how to tactfully go about getting the whole thing re-done, fixed or just corrected is appreciated

First, are you in the real estate business? Just asking because if you are, you may have a higher level of expertise than a non-real estate person.

I'm going to assume that everything you think is incorrect in the report is factually incorrect.

As to what to do, I think you have three choices:
A. Point out the mistakes and ask for them to be corrected and, if warranted, the value be re-analyzed
B. Tell the appraiser that due to the number of mistakes, the credibility of their valuation comes into question: ask for your money back
C. Do A and/or B and file a complaint with the state.

I do not recommend "C" lightly. It could be that what you think are egregious errors affecting value are factual errors, but their correction might not impact the valuation.
But, as a member of the public, you have the right to file a complaint if you believe there are serious issues with the appraisal... and especially if you believe that based on what is in the report, it is not credible and you cannot rely on it (trust it) in your decision-making process (a 50-50 buyout for a divorce).

I recommend working with the appraiser first. But, if you are correct, the level of issues warrant a review by the appraiser regulatory agency (which is a very significant and consequential event for licensed appraisers).

I said "you", but I understand you are writing on behalf of a coworker.

Good luck!

 

[Michigan CG]

B. Tell the appraiser that due to the number of mistakes, the credibility of their valuation comes into question: ask for your money back

I would advise doing the above and finding someone different.

 

[Terrel L. Shields]

I would advise doing the above and finding someone different.

The problem is if the other side knows the report exists, they will want to see it. Pick a better appraiser next time, have the att'y order it as confidential to them so it doesn't see the light of day if "bad"....a relative term depending on the situation. Sounds like you cannot fix this report. But stuck with it in court... if the other side knows it exists.

Imnsho, appraisals are p poor way to divide property. Flip a coin, loser has to set a price, winner then decides to either accept their half or pay the other.

 

[Tim The Enchanter]

Imnsho, appraisals are p poor way to divide property. Flip a coin, loser has to set a price, winner then decides to either accept their half or pay the other.

I cut the goods in half, you pick which half you want.

For the OP, sounds like you got a bad appraisal possibly. Denis gives good advice, I can't add to it. Good luck with it.

 

[49ergirl]

First, are you in the real estate business? Just asking because if you are, you may have a higher level of expertise than a non-real estate person.

I'm going to assume that everything you think is incorrect in the report is factually incorrect.

As to what to do, I think you have three choices:
A. Point out the mistakes and ask for them to be corrected and, if warranted, the value be re-analyzed
B. Tell the appraiser that due to the number of mistakes, the credibility of their valuation comes into question: ask for your money back
C. Do A and/or B and file a complaint with the state.

I do not recommend "C" lightly. It could be that what you think are egregious errors affecting value are factual errors, but their correction might not impact the valuation.
But, as a member of the public, you have the right to file a complaint if you believe there are serious issues with the appraisal... and especially if you believe that based on what is in the report, it is not credible and you cannot rely on it (trust it) in your decision-making process (a 50-50 buyout for a divorce).

I recommend working with the appraiser first. But, if you are correct, the level of issues warrant a review by the appraiser regulatory agency (which is a very significant and consequential event for licensed appraisers).

I said "you", but I understand you are writing on behalf of a coworker.

Good luck!

Many many thanks!! This was a tremendous help and no, not RE professional. Perhaps a bit more knowledgeable (but not much) only because I've made a few investments here and there.

In drafting this appeal letter, I just noticed he listed subject property condition as 'below average' and all the other comps 'superior' yet he's only listed $5k as the difference between subject prop and all the others. Nevermind the fact, I feel 'below average' is totally incorrect (probably another error and the result of the prior report he'd completed) but it seems to me that $5k is kinda small if in fact the home were below average and all the other comps are in superior condition. We're in Houston - NASA area and the houses in this subdivision list and sell between $375k-600k. Wouldn't that big of a difference in condition warrant a much higher difference?

 

[49ergirl]

I cut the goods in half, you pick which half you want.

Funny you say that, I told him the exact same thing! It's what I do with my kids

 

[residentialguy]

Pick a better appraiser next time

On the next divorce?

 

[residentialguy]

but it seems to me that $5k is kinda small if in fact the home were below average and all the other comps are in superior condition. We're in Houston - NASA area and the houses in this subdivision list and sell between $375k-600k. Wouldn't that big of a difference in condition warrant a much higher difference?

Yes...$5,000 is too small. Who in the world makes a $5,000 condition adjustment on a 1/2 million dollar house?

 

[Walter Kirk]

Has the appraiser been contacted about these problems? When I read the description of the things you found wrong I immediately wondered if the appraiser had used an earlier appraisal report from the same area as a template and then shipped a draft report instead of a final proof read report. This doesn't address any problems with the comps used or the size of the adjustments however I think that the appraiser should be made aware of the problem before something as drastic as a report to the state is considered.