• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

What Does An Audit Mean?

Status
Not open for further replies.

Hbh hanson

Freshman Member
Joined
Jun 10, 2017
Professional Status
General Public
State
Arizona
Hey there,
We are in the process of buying a beautiful manufactured home on 1.09 acres of land and everything his great. Our lending has been approved and all we are waiting for is the appraisal. They couldn't do it until the 20th so the lending company put a rush on it. It was done Wednesday. They said they would have it back on Friday. Last night I got this,

"Just got an email saying it's being audited. He submitted, but the appraisal management company selected for an audit.... don't read into it, it's random".
Then he said its common for manufacturerd homes.

What is an audit and what does this mean!?
I'm freaking out.

Thanks!
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
My guess is the audit means a review appraisal by another appraiser on the your appraisal submitted. They are looking for a second opinion.
 

Hbh hanson

Freshman Member
Joined
Jun 10, 2017
Professional Status
General Public
State
Arizona
Why? Who prefers a second opinion and what makes this happen? How long now will it take to get back?
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
They want aasurance of the quality of the appraisal and that the review appraiser agrees with the value conclusion. This may be a quality control function or it may have been triggered by a computer review or AVM .

Ask your lender how long.
 

Hbh hanson

Freshman Member
Joined
Jun 10, 2017
Professional Status
General Public
State
Arizona
Thanks. Does it mean there's something wrong with the amount they appraised it at? Or is this really totally random?
I'm a mess. I guess this is going to delay closing.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
And what is an AVM?
Thank you

AVM = automated valuation model

It is a computer program that will predict a value. It can be wrong. That's why an appraiser is used that actually inspects the property and does the research and chooses properties to compare that are similar to yours.

Does it mean there's something wrong with the amount they appraised it at? Or is this really totally random?

No, it is not totally random.
 

Hbh hanson

Freshman Member
Joined
Jun 10, 2017
Professional Status
General Public
State
Arizona
That or they're stalling for time and this is the excuse they are using.
That's kind of what I thought. Cause it was 8pm when they sent that to the lender. And they were supposed to have by 5pm and didn't.
Does that happen a lot?
 

Hbh hanson

Freshman Member
Joined
Jun 10, 2017
Professional Status
General Public
State
Arizona
When does the payment happen for the appraisal? After it's completed?
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks