Considering filing complaint for lack of market conditions adjustment on stale comps

[Zoe]

Point taken, and I appreciate you taking the time to respond. My hope is that you're misreading my posts as they are not intended to be full of smarm, entitlement, disingenuity, and contempt. I know you don't believe me, but I am trying my best to present the situation as objectively as I can. Please keep in mind that I am only able to present my perspective, which includes the appraisal report itself, the emails I was sent, and the things I was told verbally. I am not privy to every part of this process, including conversations / emails that happened between the appraiser and the lender. Based on that alone, you are right in that it isn't anyone's place on this forum to judge the appraiser's work as I have presented it from my limited perspective.

Given that this is an online forum, my ability to convey the situation and its complexities is also limited. I'm not going to post the appraisal or emails here, for obvious reasons, so the best I can do is answer questions about the situation and the report from my perspective. Accordingly, I am not planning to use this forum as a jury for whether I should move forward with a complaint or not. All I wanted to do was get opinions on whether my claim is frivolous or not. It was an honest question because, as you pointed out, I am not (and have never claimed to be) an appraiser, which is probably why I've asked some pretty basic questions in this thread. I'm sure appraisers, and this forum, have seen far too many frivolous complaints from disgruntled buyers and sellers already, so I'm not trying to add to the pile.

Your killing me hound dog. Do you like your house?

 

[throwaway12345]

“information and analysis is summarized to readers in their report. Fifth we have how that summary is interpreted by intended users of the report, which you are not. Reports are written for intended users understanding. “

in summary? The rude awakening for any borrower is when they realize they are NOT considered an intended user Regardless of their analytical/ statistical expertise

USPAP only requires that appraisals be Credible and worthy of belief. Not accurate.

That is true, I am not owed anything, including a sense of understanding of the report or my own assurance of its credibility. The rude awakening for me wasn't necessarily that I am not the intended user, but rather the low bar for which the lender uses to assess credibility.

 

[throwaway12345]

Is this Doc Manhattan? You got us, damn.

Throwaway, I think it would be easier to sharpen your nose on a grindstone wheel than come up with a explanation which would satisfy your appraisal issue. I think you should file a complaint and let the state board deal with it.

Too many movie character references, I keep having to Google who these people are lol

 

[Zoe]

You could have gave half what is worth or twice what it is worth. I have no clue. Remember that definition of market value.

 

[throwaway12345]

You have presented a cogent argument. I am a 35-year appraiser and have done nationwide reviews since 2011, and I could write a book about the lack of competency in this profession. The appraiser stated prices had increased, but a stable market was concluded due to the small data sample?! That’s laughable. If the data sample is too small, you’d better extend your research and compile enough data to accurately assess the market. For this appraiser to rely on sales from 8-10 months ago in the face of 37 competing offers within 8 days is disturbing. Most compelling to me is the listing for $735k that was under contract for $770k. My question is, was it under contract as of the effective date? If so, that is misleading. I am sick to death of lazy appraisers who will not do even basic due diligence and are often the cause of dead transactions and angst for multiple parties. Thankfully, you and the seller were able to compromise. You have a legitimate complaint.

The other duplex was under contract as of the effective date. It was under contract before mine as well, but they've run into delays (my agent is friends with the selling agent of that home). That transaction was scheduled to close before mine, which would have been ideal for providing a fresh comp. I wouldn't call the listing / SC stuff misleading as listings and contracts have been all over the board here. It's pretty tough to lean on those as an indication of anything. Proof of my point: someone listed the same model duplex as mine today for $789K, which seems pretty aggressive.

Your welcome to the appraisers for these upcoming duplex transactions for resetting comp prices lol.

 

[throwaway12345]

Those kinds of correlations can be treacherous, because there can be time lags. If for example, property type A responds positively to certain economic events two months before property type B and by the time that B reacts, property A's reaction has worn off, unless you can somehow shift the sales activity two months ahead for A, you won't pick up the correlation to B. MARS and other software have options for time lags where you can check on these kinds of relationships if you suspect them. But, keep an eye out for that.

Agreed, I'm not equipped with right tools to be able to conduct an analysis with any kind of precision. It's often trying to use a blunt tool in place of a scalpel and assume that the answers are directionally correct.

 

[glenn walker]

OK Glen - this is as good a time as any to ask you a question that's been bugging me ... this "Uncle Billy" of yours; Is he a real person, or just a metaphor you use in discussion? (He's VERY entertaining to read when you bring him up, BTW, which is why I'm dying to find out.... )

Unfortunately for me Uncle Billy is real and alive and in my home : )

 

[throwaway12345]

If OP is so concerned with ethics and the credibility of this appraisal, they should have walked from the deal, obtained different financing, or shelled out the whole $70,000 difference. Since instead they chose to benefit from the appraisal as the basis for a $35,000 price reduction, it is particularly loathsome that they would now send it to their state.

I have addressed these points in other comments, but let me restate them here in response to your speculations and to provide some additional context so you can understand why I made the decisions I did.

First, none of those numbers are correct. The gap was greater than $70K and the price reduction from the seller was far less than $35K. Second, it is because I felt the appraisal lacked credibility that I chose to stick with the transaction. I'm still confident in my personal valuation, and maybe I'm wrong and an irrational buyer, but I'm not going to walk from the deal because the appraiser came up with an opinion that is lower than mine. I would walk from the deal if I did find the appraisal credible.

I didn't shop the loan because I am expecting a baby soon, wanted to ensure I had some housing stability ahead of that, and my prior living situation would have presented an extremely difficult scenario for handling a newborn. I described this part in prior posts as "factors outside of the transaction" to not get into details of my personal life, but since you used the word loathsome to describe my actions I hope this answer is satisfactory to you.

I didn't make up the >$70K difference because I couldn't. Despite your assumptions of me, I did not use the appraisal as the basis for a price reduction. I asked for the price reduction because I didn't have enough money to move forward with the transaction and comfortably be able to provide for my growing family. I don't have a trust fund to tap into or wealthy family members that I can obtain gift letters from, just my savings after years of work. I can't just come up with tens of thousands of dollars in the span of a few weeks (legally).

It's evident that you have your mind made up about my situation, who I am as a person, and my motivations behind everything that I have done. All I can offer is an explanation of the circumstances to clarify for others reading this who are more willing to hear what I have to say.

 

[Fernando]

I'm having a hard time hitting the target price.
If I use larger homes with 2 bathrooms, I can get near the target price. The agent gave me all larger 2 bathroom sales.
If I use similar size 1 bathrooms comps, I'm significantly off the target price.
Buyers won't be happy.

 

[Alsie35]

Unfortunately for me Uncle Billy is real and alive and in my home : )

He sounds like quite a character.