Opinion on Appraisal

[Eli]

IMHO, your best avenue is to keep working with the lender, a little longer anyway. There is a possibility that improper appraiser selection criteria was utilized. In some ways, how your lender responds to your concerns should be just as relevant and important as how the appraiser responds to the lender's concerns over the appraisal. I hope I am making myself clear that if the lender is not addressing your concerns satisfactorily, then that could have a bearing on the appraiser not addressing your concerns in a manner that you feel is appropriate. The lender can order another appraisal maybe, and/or work with the existing appraiser further.

 

[client123]

Thank you for the link, Mike Kennedy.

If we cannot resolve this through the appropriate lending channels, I am very aware of what our options are.... both legally and through the State Board. The idea of going down that road makes me sick. It costs us time, money, and mental well-being. I just want the service for which we paid..... an error-free appraisal.

 

[J Grant]

While an appraisal may never be 100% error free, since it is prepared by a person and involves varying sources etc, it should be free of gross material errors that would impact value, as well as have well selected comparable sales. If this report contains gross material errors and/or very poorly selected comps, I would point this out to lender and ask for another appraisal.

 

[Eli]

You stated that the home has appraised higher in recent years. You might talk to some realtors that work your neighborhood to find out their opinion of whether values have been declining or not in your neighborhood, and share this information with your lender along with the prior appraisals.

 

[client123]

You stated that the home has appraised higher in recent years. You might talk to some realtors that work your neighborhood to find out their opinion of whether values have been declining or not in your neighborhood, and share this information with your lender along with the prior appraisals.

We have met with realtors in our area, and all of them have said that prices have gone up 15%-20% over the course of the past few years. We live in a desirable area of our city/town. If you look at houses in our neighborhood with the same square footage and features, they have all sold for virtually the same amount. The current appraisal came in $250,000 below those sales prices., and our other appraisals all reflect the higher value. The current appraisal report is littered with errors. I truly think that there are more errors than factually accurate statements. It's a nightmare trying to sort through the report. When the comps chosen have material square footage errors (originally overstated by 1,800 sqft), sales price errors, are 60% our GLA, include a short sale with no adjustment for that (the foreclosure rate for our area is less than 4%), and overlook numerous other properties without explanation, the integrity of the entire report is gone. I am sorry, but he was not diligent or competent enough to get the bed and bathroom count of the SUBJECT property correct in his original report. That just reflects his attention to detail.

 

[PhysicalDepreciation]

First of all, I truly commend you for your tolerance and patience. Most people are the exact opposite. They'll dig through the entire report until they can uncover any little error then threaten the appraiser with a state complaint. You seem to have some real issues that need to be addressed. I always like to give people the benefit of the doubt(especially my own peers), but if what you say is true, this appraisal needs to be sent to the state for review. You've been very understanding and have given him multiple opportunities to right his wrongs. I feel for your predicament and wish you good luck. Please keep us updated on how everything turns out.

 

[Eli]

We have met with realtors in our area, and all of them have said that prices have gone up 15%-20% over the course of the past few years. We live in a desirable area of our city/town. If you look at houses in our neighborhood with the same square footage and features, they have all sold for virtually the same amount. The current appraisal came in $250,000 below those sales prices., and our other appraisals all reflect the higher value. The current appraisal report is littered with errors. I truly think that there are more errors than factually accurate statements. It's a nightmare trying to sort through the report. When the comps chosen have material square footage errors (originally overstated by 1,800 sqft), sales price errors, are 60% our GLA, include a short sale with no adjustment for that (the foreclosure rate for our area is less than 4%), and overlook numerous other properties without explanation, the integrity of the entire report is gone. I am sorry, but he was not diligent or competent enough to get the bed and bathroom count of the SUBJECT property correct in his original report. That just reflects his attention to detail.

I think if you are persistent with your lender, things may change based on the information you have provided. Banks must comply with very important appraiser selection criteria rules. Sometimes, it is hard to get to the right person in a bank to get things done. Try to talk to another officer of the bank if you don't get anywhere with the one you are dealing with. Ask for their supervisor, and on and on. All the data, you have shared here, needs to be shared with the right person at the bank, and hopefully, that will solve the problem. Well, and you can take any further actions you want to as well.

 

[Eli]

Client123, I said "bank", but the same advice I gave you would apply regardless if you are dealing with a local bank, an internet mtg co, or whoever you are dealing with unless it is some type of loan by an unregulated institution, which I doubt. I wish you the best and feel fairly confident you can get it worked out based on what you have shared, if you can communicate with the right person with your lender.

 

[Tim The Enchanter]

Be persistent. :icon_idea:

 

[residentialguy]

it will cost us tens of thousands of dollars

I so don't want to go down this road. Truly, I don't.

Hmmm, so if someone stole tens of thousands of dollars from you and you knew he'd probably do to that to many other people, you wouldn't report it??? :Eyecrazy: