Profile picture for hcronk

Seller gets appraisal numbers DAYS before buyer??

A VA appraisal was ordered on the home I am purchasing. After a week or so I inquired about the status. My loan officer said the appraiser was having a little trouble finding comps. The appraisal finally came in $9000 low. During a phone conversation, my real estate agent 'let slip' that the seller and her agent have had the appraisal information for days already, long enough to contest it and be denied. Is there a legitimate reason that the seller would get the appraisal results before I, the buyer, had them??
  • October 25 2013 - Tooele
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Answers (8)

Best Answer

Profile picture for CallTheSisters
I just ran into similar circumstances.  When a VA mortgage is going to come in low you get a 48 hour heads up.  Both sellers agent and buyers agent.

It is called the Tidewater Initiative.  We got 48 hours to supply other comps. It is the way VA appraisals are done now.

Our appraisal also ultimately came in low.
  • October 26 2013
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Profile picture for RealEstateCrew
Sounds like the seller was working to keep the agreed terms of the contract and you will now be back at the table.  

Put your negotiating hat back on and work on figuring out how to close and not who had appraisal info before who.  If you want the house.  If you do not want the house, work with your Realtor on cancelling the contract.  
  • October 26 2013
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Profile picture for CallTheSisters
To further clarify hcronk.  Neither agent is told what the appraisal in coming in at - nor will the appraiser share his comps.  The blind leading the blind.  The appraiser sends an email to the lender.  The lender in turn alerts the agents.

No one is permitted to talk to the appraiser and glean any information.

In my instance I did alert my buyer.  Some times when an agent has nothing to tell a buyer except I just got a 48 hour notice from the appraiser - they are hesitant upsetting the buyer until they have the facts.

Mine came in significantly below because a home closed just days before the appraisal which knocked out prior comps.
  • October 26 2013
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Profile picture for hcronk
I appreciate your answers. My concern is that my agent knew there was something going on with the appraisal and didn't disclose it. She was asked for comps and provided them to the appraiser. If the seller got to see the numbers, at the very least it seems I should have been able to see them before they were formally contested. The low appraisal has not, in fact, worked in our favor as now the seller cannot pay our closing costs. We are already on the hook to pay them for the buyers of our current home. In order to afford the second CC, we have to take a higher interest rate so, though the sales price is a bit lower, our payment will be the same.
  • October 26 2013
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I doubt your story is totally correct. My guess, and it's just that based on a lot of experience, is that the appraiser was having problems getting comps to get to the amount needed to justify the sale price. When this happens the appraiser will often contact one or both agents to see how they arrived at the listed price or the contract price to see if the appraisal missed something. It's pretty much as simple as that I bet. This has happened to me more than a few times and a few times my suggested comps helped raise the appraisal amount. I don't think anything more than this occurred here.


tim
  • October 26 2013
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I think that since you are the one paying the appraiser they should have
been working with you and your agent only.

I keep my clients information completely private, as a Contractor,
Appraiser or whatever the case may be you should always be loyal
to the person that is writing your check.

I would also be upset with my Agent who knew and didn't tell me...
regardless the facts of, they should be communicating with you before
something like that had a chance to take place.
Doesn't matter that it worked out for you, it matters that it was allowed
to happen in the first place.

If the appraiser was having a problem finding comps. they should have
contacted the buyers  agent not the listing agent.

No way to do business people.
-Joseph-
  • October 26 2013
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Profile picture for nmbostrom
I agree with the previous comment.  I am located in Wisconsin and it is not typical for the seller to have access to the appraisal.  My guess is that the appraiser was having a difficult time finding comparable homes so he/she reached out to the listing agent to see what they used for comps.  

Either way, the price came in lower than your offer price, so it doesn't appear to have affected your position negatively.  You will likely be able to pay a little less for the home.  I personally wouldn't lose any sleep over it.

Best of luck.
  • October 26 2013
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Honestly the seller shouldn't have the appraisal in the first place. The buyer pays for it and owns it. The seller has no reason to see it. When sellers ask me for my clients appraisal I tell them that it either came in at value or that it we will be sending them an addendum asking for a price reduction. I would really look into this, something here isn't matching up for me.
  • October 25 2013
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