Discovered a major error in my appraisal - now what?

[stencil]

I dont, know for sure but it sounds like the 1820 one includes the garage sf which is incorrect. Garages dont count towards Gross Living Area.

Both of the diagrams do not include the garage area, but both diagrams do include the converted garage bay as living area. I believe that is the right way to do it, but correct me if I'm wrong.

There are a few measurements that differ on the two diagrams by a foot or two, but I assume that is fairly common. The major error is that the recent appraiser misreported the length of the house by 20 ft or so. I triple-measured my house and I'm sure that he got it wrong.

 

[stencil]

I'm not defending the other appraiser's work, but you do realize that 3 years ago, many markets were, and some still are, in the middle of a huge correction.

Understood. That's why I actually did not fight the appraisal harder at the time, I thought it was possible that my home actually could have decreased in value some. It was only after studying the appraisals that I became sure an error had been made.

 

[stangtime]

I'll play the devil's advocate here, I'm wondering about a few things...could you post a picture?

Dan

 

[GCJim]

I would also ask your lender if they contract directly with local, knowledgeable appraisers, OR, if they use a third-party 'appraisal management company' (AMC), which hires the appraiser.

Many of the largest us mortgage bankers own AMCs (talk about a conflict of interest......), and skim a large portion of the appraisal fee for themselves, paying appraisers peanuts. AMCs generally use ONLY the fastest and cheapest appraisers (with no regard whatsoever for quality or experience), are high volume-oriented (in a hurry), and more experienced appraisers refuse to work for them. Using an AMC is a very real crap-shoot when it comes to quality appraisals.

Good luck....

 

[stencil]

I'll play the devil's advocate here, I'm wondering about a few things...could you post a picture?

Dan

I'll get you a picture tonight. I'm interested in any and all theories!

 

[residentialguy]

I dont, know for sure but it sounds like the 1820 one includes the garage sf which is incorrect. Garages dont count towards Gross Living Area.

No, he didn't include the garage. That is correct to that sketch.

OP. Measure the back of your house to decide which sketch is correct.

If it's 76' - the 1st one is correct
If it's 56' - the 2nd one is correct
There is also a decrepancy with the bump out in front...either 22' or 26'

 

[RSW]

I dont, know for sure but it sounds like the 1820 one includes the garage sf which is incorrect. Garages dont count towards Gross Living Area.

Looks like the 2nd appraiser missed about 22 LF on the front of the house.

 

[residentialguy]

Inform the lender. Ask if they could reconsider. That may be too late to undo the PMI but perhaps you can get it removed. I would not be bashful about asking the appraiser to 'fix it' - late to the party or not. It is HIS error apparently.

If the appraiser does not respond with an admission to the error then send the report to the state appraisal board as a complaint. The appraiser ignored your concerns and in doing so, once apprised of a potential error, was negligent in not catching such a serious measurement error. If that issue is raised, I would have checked and rechecked. Appraiser cost you the PMI. You could have a lawyer file a complaint against his E & O insurance as well.

Not to mention that the State Board might want to have a lil fire side chat with the appraiser that is off. Problem is that we still don't know which appraiser is off on the measurements.

Stencil...measure your house's exterior so you know which appraisal was bad.

 

[ctapraser]

Thanks for all of the advice everyone, I am going to have to re-read all of these posts to formulate the right approach as there seem to be a few different opinions in there.

I don't want to sue anyone, nor do I want to damage someone's career over what is hopefully an honest error. I just want to have the PMI taken off of my loan. I actually called all parties involved on Monday (before finding this forum and getting some sound advice), but so far neither the lender nor the appraiser have called me back. This makes me... uneasy. I'll try contacting the lender again.

My bold...


From appraisers all over the USA....thank you and I hope the work with you to correct the appraisal (if it needs it)

 

[Ken B]

Appraisers who make gross errors should be held accountable for their product.