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Profile picture for Minca

What do you do if you get an incredibly bad appraisal by a company that you hired thru your lender?

We are refinancing our home and used an appraiser recommended by our lender - yet his work was incredibly poor and our house appraised at about $40-60k below market.  We paid for this appraisal and would like to know if we have any recourse?  Anyone have a similar experience?
Thanks.
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January 03 2009 - Eugene
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Answers (15)

Magical House nailed it nothing wrong with it... the problem is the threads are no longer relevent with the changes.  Advice that was given a year ago about appraisals is no longer valid.
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January 12 2010
Profile picture for MagicalHouse
Guidelines, Regulations, and even the market changes often.  Pulling up old threads does little good.  If you have a question, post it, especailly if everything similar was more than a few months old with so many changes happening.
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January 12 2010
Profile picture for vak555
Andrew,

With all due respect, why can't he pull old threads?

He is not an agent, lender, or other real estate professional...He is not getting any business from this board, just trying to talk about what concerns him.  If someone finds a thread that relates to them, they can post there - that's what the forum is for, regardless on how old the thread is....I understand that for a professional an old thread is time wasted, since you can't expect any business from a 1-year old situation....but that's cost of doing business on Zillow.

I, personally, reserve the right to pull any thread I want, any time I want :)

Regards,

V

 

 

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January 12 2010
Why are you pulling up year old threads?
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January 10 2010
Profile picture for bootsxi
Andrew, , i was not talking about the lender. It was talkingabout the appraiser, if you dont have any useful information, then why are you wasting everyone's time.
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January 10 2010
Boot,

You are bitter and keep pulling up threads that are more than a year old.  Lenders have no control over value.  Complain to your congressman, because we can't do anything about it!
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January 10 2010
Profile picture for bootsxi
I am in the process of fighting a "bad" appraisal.  the comps used were nothing like my house. One was 2 miles away, the other was in a different neighborhood and smaller and different style house. The one comp that was used as the number 1 comp had the wrong sale price listed.  It had sold just a few months ago for 100k, but the appraiser thought that this was a recording error, because it had sold 8 months earlier for 55K....he used the 55K sale price.  GUESS HES NEVER HEARD OF A FLIPPER BUYING AND RENOVATING AND SALEING FOR A PROFIT.....LOL
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January 10 2010
Minca, almost all appraisals are reviewed by the bank. If it's too low it will also be questioned. I have a loan in to the bank were the underwriter just questioned why the appraiser didn't add extra value to the property because the lot was over 4,000 square feet larger than the comparables. If your appraisal is a deal killer I would ask your broker to consult another appraiser and get comparable sales from his/her title company. Almost all lenders have an approved appraiser list. It won't be long before the banks will order all appraisals and the borrower won't have a choice who performs this service.
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January 04 2009
If you paid for the appraisal you should be able to get a copy of it. Take it to several other appraisers and ask for their advice. It might cost you a little, but they can tell you if it is a valid appraisal based on available comps, or if there are better comps that could increase the value.
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January 04 2009
Appraisers will use the comparables at hand.  Ask the lender what was used.  Foreclosures, short-sales are valid comparables in this market.  Though you may not like it, they will will be used as they are arm's length transactions.  The only thing you can argue is the adjustments that the appraiser used: square footage, upgrades, conditions, etc.
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January 03 2009
Profile picture for wetdawgs
I agree with the question asked by another poster, what is your definition of "bad"?   Has the appraiser used poor comps?   Has the appraiser used incorrect information?  If you haven't yet done so, sit down and go through the details of the appraisal.   If the comps are not justified, then you may have recourse.  

Once we had option of a corporate buy out of our house when relocating, and we lived in an expensive town surrounded by commuting suburbs.  One of the three appraisers chose to use houses 10 to 20 miles away as comps.   It was clear to all involved that these were not justifiable, and his appraisal was discarded from the company's determination of fair market value.
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January 03 2009
A LOT OF APPRAISORS ARE BEING VERY CONSERVITIVE ON THEIR APPAISALS. I USE ZILLOW.COM AND SHOW THE COMPS TO THE LENDER/APPERAISOR TO SEE IF THEY CAN RECONSIDER THE VALUE. SOME TIMES THEY WILL IF YOU USE 4 MONTH COMPS WITH SAME NUMBER OF BEDROOMS, BATHS AND SQ. FT. 
GOOD LUCK! 
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January 03 2009
Profile picture for dfors2
Your appraisal is likely to be correct.  I just had a rental property appraised.  Was 290k on 11/06 with Wells Fargo.  It now appraises for 180k.  Was trying to refi from 5.75% 15 yr to 30 yr at 5%.  Oh well.
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January 03 2009
is the appraisal "BAD" because it was low or because it contained unsatisfactory comparables? Have you actually seen the appriasal? If you feel the appraisal is inadequate you can choose to fight the appraisal and supply comparables that you feel more closely reflect the value of your home. Keep in mind the comparables should be of similar size in sq footage, similar in condition, should be within 1 mile radius (the closer the better) and should have sold within the last 6 months. If you live in a declining market the appraiser cannot choose to ignore this fact and must list foreclosure and short sales in the report.  Many lenders are rejecting appraisals if they do not have this data contained in them.
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January 03 2009
I have a feeling tht appraiser's are really being very conservative right now.  I would speak to your lender to see what could be done.  Or directly speak to this appraiser that appraised your home and see what comps he used to compare your home.  Perhaps, there is something you know that he/she doesn't.  Good Luck!
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January 03 2009
 
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