Thread: Appraisal

What guidelines did they not follow?
Did you see the appraisal? Was any of the features of the home incorrect? Were the comps used incorrect on any features?

If you can find incorrect facts you may be able to contest it.

Originally Posted by Andy Mann

Is there any recourse against an incompentent Appraiser who failed to follow basic appraisal guidelines and appraised a home at significantly less than market value ?

Is this a case of unrealistic expectations or how are you judging their failure to follow basic appraisal guidelines... You do realize that lenders today are extremely cautious, due to the instability of the market, the over-bloated inventory, and you do realize that an appraisal is just the appraiser's "best guess/opinion" of house value. Take three different appraisers and you will get three different values.

It is all in what the appraiser feels that the house is worth, and again with the huge supply, and the lenders holding fast to their capital, houses are not worth what they used to be.

Just my opinion and observation.

Later!

My home is in escrow. I have bought and sold many homes over the years. I keep current on home prices and market conditions. Most homes in my immediate area in the past 6 mos. have been either short sales or foreclosures and generally in poor condition. Two homes, one of which was identical to mine (plan and footage) and on the same block were not even used in the appraisers comp. Despite mine having over $70K worth of upgrades (complete new kitchen, appliances, flooring and paint throughout, completely landscaped, new fixtures, lighting, garage doors etc.) over the others and is in immaculate, move in condition, mine was appraised lower than all the others. Furthermore, my home has has a larger lot, rear green-belt view, and does not require any repairs (termite/dry rot etc). I also received multiple offers within the first week and ultimately sold for 96% of list price. All offers were within 1% - 2% of sale price. The immediate market in the last month or so has shown a slight gain in sales price.

The appraiser valued my home at less than 90% of list and $10K less than the same plan home, which sold in 2 days and listed as a 'fixer' in the MLS. The low appraisal has caused my buyers, who were obviously satisfied with the agreed to price, to walk. I have back-up offers but never-the-less...IMO the appraiser screwed up.

FWIW I am also a Home Inspector and have Handyman business. Both my realtor and the buyer's realtor were shocked.

Andy

Google Home Valuation Code of Conduct and investigate whether this appraiser was from your area and as qualified as they should have been.

How long ago did the homes on the same block sell? That may have been the reason the appraiser did not use them as comps.

For many months I have been looking for an exotic place to move to. While there is no shortage of real estate websites out there, most have not been of any real value to me. If anyone knows of some good websites to visit please let me know.

Markbrian and others, thanks for the response.

The home which was identical to mine (plan and footage but not condition) was placed for sale about six weeks before mine in April. It sold in two days (offer accepted for asking price and probably priced too low) and was in escrow when I put my home on the market. Escrow closed on that home and recorded a day before my appraisal. My realtor specifically referred the appraiser to that home as one of the comps. and provided others which were more comparable than the ones he used. He disregarded all the information we provided, showing the added value to my home over the others, and still went with foreclosure pricing. Mine was not a foreclosure or short-sale. The appraiser was definately not familiar with the area and brought in by the lender from a neighboring county and 40 miles away.

Thanks for the Google link.

Andy

Originally Posted by Andy Mann

Is there any recourse against an incompentent Appraiser who failed to follow basic appraisal guidelines and appraised a home at significantly less than market value ?

Andy

Not unless you are the client.

Originally Posted by chrisrich

For many months I have been looking for an exotic place to move to. While there is no shortage of real estate websites out there, most have not been of any real value to me. If anyone knows of some good websites to visit please let me know.

Describe "exotic"

Great fishing? Great golf? Waterfront? Ocean? Mountains?

Originally Posted by Andy Mann

Is there any recourse against an incompentent Appraiser who failed to follow basic appraisal guidelines and appraised a home at significantly less than market value ?

Andy

Residential appraisers (Since FIRREA) are now all licensed by your state and the state sets the standards that they are required to use.

In addition to these requirements, lenders (who are their actual clients) can make additional requirements as well.

All of the standards should be available to you either through the state licensing agency or the lender.