Help! VA Appraisal came in $40K less

[KYLECODY]

In my opinion, this feels grossly unfair and I'm looking into filing a complaint with whomever regulates appraisers in FL and contacting my Senators.

If you want to file a complaint with a Senator over this you must not have much else going on in life? Do you think they care? Appraising is an opinion of value, its not a perfect process. There is room for interpretation. You can't file complaints based on "value issues" as I've never heard a buyer, seller, realtor, lender tell me my appraisal was "too high"...its always the other way. You would have to file a complaint based on USPAP guidelines or gross negligence. It would be a waste of yours and everyones time and wouldn't change the outcome. I am surprised he upped his value after the reconsideration of value. I have increased my value once out of hundreds of reconsiderations in 20 years. He must be weak willed or new..

If the market is that good and prices are going up, just pony up the 20k. You're not flushing it down the toilet, you are investing in a home. Plus, you are so certain you are right and the appraiser is wrong why wouldn't you? Theres not that shadow of a doubt in your mind is there that it might be overpriced and you don't want to pony up more of your own money? Good luck either way. The appraiser is there to help a lender make a lending decision and potentially help a buyer from overpaying for a home. You can have your own opinion and its your money.

 

[Salty]

You would need to prove negligence. A simple difference of opinion may not be that. I believe at a minimum you would need to do the legwork and show evidence that the other sale should have been used (assuming that is the only issue). That has to be proved with market data. I know nothing about how state boards operate but I think if I was on a state board and going to hinder one's ability to make a living over an appraisal I would need indisputable proof that the appraiser was negligent. At least 2 other appraisals. And not just form filler appraisals, I would want to see a good market study showing that lot size should not have been taken into account and that that other sale should have been used or at least considered. Then I would want to see if it would have an impact on value. Simply filing a complaint will not result in anything unless it is glaringly obvious fraud / negligence. All of this is what it is so very important to work with lenders that utilize good quality appraisers that actually take the time to get it right. Who knows, perhaps the original appraisal might have been the right number, but I would want to see the data indicating that a site difference is still relevant in your market market today before making the decision not to use a possible comp that supports value because it is on a larger lot. If the data is not there, a survey of active agents/brokers could also be a good data source.

 

[Zoe]

Have to remember an appraiser cannot hang their value opinion on one sale.

 

[Terrel L. Shields]

The home is worth $280K. The market clearly defends that. Had the house existed in September 2020, then yeah, it would have been worth $237,000.

An 18% increase in price in a year is unsustainable. Did your salary increase by 18%? Did you retirement check increase by 18%. Did your investments return 18%? If not then this house will have a hard time retaining its value. Market Value implies a prudent and well-informed buyer and seller.

 

[KenAZ]

Arizona values increased almost 50% over the past year. I had a realtor tell me not to buy homes at this time.

I think the OP is being caught up in this. Just wait until January when the market stabilizes or declines. Right now is crazy, and people are not thinking clearly when buying. They don't know that this has the feel of 2008 when you could buy these home for 1/2 price!

 

[KYLECODY]

Arizona values increased almost 50% over the past year. I had a realtor tell me not to buy homes at this time.

I think the OP is being caught up in this. Just wait until January when the market stabilizes or declines. Right now is crazy, and people are not thinking clearly when buying. They don't know that this has the feel of 2008 when you could buy these home for 1/2 price!

50%? You're an appraiser right? In the same market as me? You might want to run some actual market data.

 

[shrubberyvaluation]

Arizona values increased almost 50% over the past year. I had a realtor tell me not to buy homes at this time.

I think the OP is being caught up in this. Just wait until January when the market stabilizes or declines. Right now is crazy, and people are not thinking clearly when buying. They don't know that this has the feel of 2008 when you could buy these home for 1/2 price!

50% increase even accounting for inflation seems nuts. Of course with the current administration and congress inflation may catch up. No one can tell the future for certain but we can see the forces at work and get some hints.

 

[KYLECODY]

Arizona values increased almost 50% over the past year. I had a realtor tell me not to buy homes at this time.

I think the OP is being caught up in this. Just wait until January when the market stabilizes or declines. Right now is crazy, and people are not thinking clearly when buying. They don't know that this has the feel of 2008 when you could buy these home for 1/2 price!

Here, Ill help you just so you don't confuse people...Would love to see your time adjustments if you think its 50%...and you're going to listen to what a realtor tells you to do about buying/selling, while you're an appraiser? I have concerns.

All single family homes in Maricopa County(Phoenix metro) from 9/2020-10/2020 have a mean value of 435k while 9/2021-10/2021 have a mean value of 514k...We call that 15%.

 

[KenAZ]

Phoenix Housing Market: Trends and Forecast 2025-2026

Get the latest Phoenix housing market forecast! Expert analysis of home prices for 2025 & beyond. Will Phoenix home prices drop or crash? Find out now!

www.noradarealestate.com

April increases were near 50%, now it has dropped to 31%.

 

[KYLECODY]

Phoenix Housing Market: Trends and Forecast 2025-2026

Get the latest Phoenix housing market forecast! Expert analysis of home prices for 2025 & beyond. Will Phoenix home prices drop or crash? Find out now!

www.noradarealestate.com

April increases were near 50%, now it has dropped to 31%.

Cute article, they can write whatever they want. They contradict their "numbers" numerous times in several places, did you read the article? Still looking for your 50% number. Do your own research and see what you come up with.