Errors & Omissions In Report - Appraiser Refuses To Fix

[sputnam]

Regarding a single family home appraisal report, appraiser completely left certain things out of the report, marked sections as "None" when the items were present, etc. In the comps he was using, let alone not being the same/similar style of home (used cape cods when home is a split) - had completely wrong information within the comps used (wrong acreage compared to tax records, calling basements finished when not) - all which led to a lower value of the home being appraised.

Thought it would be an easy fix and appraiser and bank were sent the correct information, but appraiser refuses to correct. These are not opinion items, these are actual facts about the subject property and comps which he refuses to correct, no one understands why, maybe an ego thing? What would you do about the appraiser at this point? Put "E&O" in the title because we do have his insurance policy and if this deal falls through due to his low valuation, he will most likely be getting sued. Should he be reported to the state licensing board, AMC, etc??

Not having viewed the property nor the appraisal report nor having access to any of the other relevant information, I can't give you a definitive answer. (not what you wanted to hear, right?) However, I will address your concerns in a very general kind of way.

Most appraisers in most places I have familiarity with do not consider public records to be accurate regarding the physical characteristics of a property. The reasons for this include the fact that the County department responsible for your assessment rarely inspects the property, homeowners often make improvements to their houses (like finishing a basement) without bothering to get a building permit or otherwise informing the County. Typically, you can rely on what the tax record tells you about the age of the dwelling, overall features, land size (unless there are multiple lots with separate parcel numbers and addresses).

A competent, ethical appraiser will use the best comparables that are available at the time of the appraisal. 'Best' means different things to different appraisers however, generally it means recent, proximate, and physically similar. Most appraisers that I know will prioritize recent and proximate over physically similar. Unfortunately, on any given date (the date of the appraisal) there may or may not recent sales of highly similar properties available. Some markets are just like that. The appraiser isn't at liberty to create sales.. he/she has to use what is found.

I used to be responsible for dealing with Value Reconsideration requests and I can tell you that many appraisers are very stubborn about it... and no one can tell an appraiser that they have to change their value. At the end of the day, the value reported is the appraiser's informed opinion. The best approach is to simply provide any data that supports a different value to the appraiser and to point out any errors of fact. Remember though, if it was a typical transaction, you have no standing with the appraiser. The appraiser's client is the lender so you have to work through them.

 

[Terrel L. Shields]

Send a copy to the state board, let them sort it out.

 

[James Micozzi]

So you guys, who do this for a living, can submit a report full of inaccuracies, get called out on it, refuse to change it (yes its been confirmed he will not change his mistakes and will not respond to me), and not expect any consequence? I don't know, I am in a very similar field involving the insurance industry and if I submitted something like this, which I have in my earlier days, I would immediately have to fix it and deal with the fallout. Again these are NOT opinion items, these are incorrect and missing facts.

The appraiser is under no legal obligation to respond to you. You are not the client, the lender is. Therefore, the appraiser is correct in not responding to you.

 

[sputnam]

It would be a violation of USPAP (the rules for appraisers) to respond to you or to discuss any specifics of that appraisal. I don't know what the rules are in NY. In NC, the appraisal board is a consumer protection agency. Here you can submit a complaint anonymously.

 

[andrew81]

Regarding a single family home appraisal report, appraiser completely left certain things out of the report, marked sections as "None" when the items were present, etc. In the comps he was using, let alone not being the same/similar style of home (used cape cods when home is a split) - had completely wrong information within the comps used (wrong acreage compared to tax records, calling basements finished when not) - all which led to a lower value of the home being appraised.

Thought it would be an easy fix and appraiser and bank were sent the correct information, but appraiser refuses to correct. These are not opinion items, these are actual facts about the subject property and comps which he refuses to correct, no one understands why, maybe an ego thing? What would you do about the appraiser at this point? Put "E&O" in the title because we do have his insurance policy and if this deal falls through due to his low valuation, he will most likely be getting sued. Should he be reported to the state licensing board, AMC, etc??

ive seen reports riddled with errors and fraudulent information. as an appraiser it does get under my skin that this appraiser and I have some of the same lender clients.

as others have stated the appraiser is obligated by USPAP Ethics Rule to NOT discuss the appraisal with anyone except the client. so if nothing else this is one thing that is being done correctly lol

An appraiser must not disclose: (1) confidential information; or (2) assignment results to anyone other than:
• the client;
• parties specifically authorized by the client;
• state appraiser regulatory agencies;
• third parties as may be authorized by due process of law; or
• a duly authorized professional peer review committee except when such disclosure to a committee would
violate applicable law or regulation.

 

[Evincere]

Absolutely wrong, I am on the seller side of the subject property. The property was appraised TOO LOW for the buyers bank/mortgage, not too high. The appraisal, IF IT HAD THE CORRECT FACTS, would come in right at the number the buyer wants to pay for the property. I have no clue what you are talking about, desk reviews, etc.., but this is simply a case of the appraiser not including the correct information on his report regarding the home for sale and comps. Facts, not his opinion of the property. The E&O & lawsuit discussion was brought up as option, simply because this guy valued a $500k property at $450k and killed a deal.

Just curious. If you would be so kind to factually describe some of the factual errors made as suggested by friendly Fred that would represent a $50k difference?

And Please be factual and concise so that if the property goes to contract again and does not come back at the contract price you will have a better understanding of why you might want to reconsider the list price.

PS. Appraisers reading this thread should give careful thought and consideration to the first 4 words in the thread heading. And why E&O carriers advise against this practice

 

[Pittsburgh Pete]

Just curious. If you would be so kind to factually describe some of the factual errors made as suggested by friendly Fred that would represent a $50k difference?

And Please be factual and concise so that if the property goes to contract again and does not come back at the contract price you will have a better understanding of why you might want to reconsider the list price.

PS. Appraisers reading this thread should give careful thought and consideration to the first 4 words in the thread heading. And why E&O carriers advise against this practice

Thread title is a bit off. OP pointing out that there are errors and omissions in the report that the appraiser refuses to fix. This thread has nothing to do with inserting one's E&O info in a report.

 

[Carlos Danger]

When it comes to lot sizes public records aren't real accurate. You need to look at the tax map. He could be refusing to change what he knows is correct.

 

[jay trotta]

That is fine, yes the buyers lender does have the final say and it cost me a lot of money, so I am involved in this as much as anyone else. Yes I am involved on the seller side and stand to gain from the sale, so when I am out a portion of $50,000, I am concerned about what can be done. The issue is why an appraiser can send in a report full of errors & omissions and get away with it?

So you guys, who do this for a living, can submit a report full of inaccuracies, get called out on it, refuse to change it (yes its been confirmed he will not change his mistakes and will not respond to me), and not expect any consequence? I don't know, I am in a very similar field involving the insurance industry and if I submitted something like this, which I have in my earlier days, I would immediately have to fix it and deal with the fallout. Again these are NOT opinion items, these are incorrect and missing facts.

It would appear some Bias is involved; the Lender is the Client (noted before) it is their option to seek out a "Review" if they deemed it necessary; if it were "Full of Inaccuracies", it would appear a "Review" would be warranted. In my Opinion, something is not right with all of this; get a New Lender and New Appraisal if your not getting what you feel are the appropriate answers, Just a thought.
In this day & age of AVM's etc., perhaps the Lender found an even Lower Price Point....you would not know this, they're not obligated to disclose.

 

[Elliott]

Looks like Don P was a one day wonder. He might not have gotten the answer he wanted.