- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
I know we are only obligated to the lenders. However, when you inspect a property and the square footage is overstated by the listing agent, shouldn't somebody alert the buyer that the home is not a big as stated? The loan officer is not going to do it, because they do not want their loan to go south. EX. I inspected property today listed at $169,900, dropped from $192,500 where the listing states the SF as 3,500 SF. The tax records say 3,208 SF. The listing says "tax office SF is wrong. The game room is not included." Well, yes it is. In fact, I came up just shy of 3,200 SF with the game room. The problem is not a value problem. The property is still worth more than the contract price of $164,000, just not as much as the borrowers think. They think they are "stealing" a 3,500 SF home when in fact they are paying nearly market value for a 3,200 SF home. Two years down the road, when they go to sell they are going to find out that they did not buy what they thought they were buying. Who do you think they are going to blame? I informed the loan officer, but I could tell by her resonse that they did not want to disclose the facts because they did not want the borrower to back out and lose the loan. What do you think? No, I am not going to call the borower. My heart tells me I should, but my ethics tells me I can't. Our business just doesn't make sense sometimes.