Incompetent appraisal on Re-fi, what are my options? (premium, loan, properties)
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Annemieke, yes my home and the whole street is new construction. All of our houses are part of the newest phase of construction in the neighborhood. These newest sales were closing out the final phase. There should be no measurable depreciation in a home built in December 2008 (ours) and the ones built 2009-2011. The appraiser did not take off for any depreciation in this regard, for our home.
On the flip side, the 3 comps she used were 6, 10, and 14 years old, compared to our 3 year old home, and no adjustments were made.
I just think there needs to be more formula-type approaches in a certified appraisal. As it stands, it looks like there is too much discretion left to the actual appraiser, and if they are not very familiar with a specific, local market, it makes it difficult to get an accurate read IMHO.
BTW, we are located near the Montclair area in PW County.
If you like, email it to me and I'd be happy o look at it for you. I am certified in OK (and almost in AR) so I can't give you an opinion of value, but I can look at it and see whether or not it is a credible report.
MODS ..... this is not a business transaction ... just trying to help somebody out.
Annemieke, yes my home and the whole street is new construction. All of our houses are part of the newest phase of construction in the neighborhood. These newest sales were closing out the final phase. There should be no measurable depreciation in a home built in December 2008 (ours) and the ones built 2009-2011. The appraiser did not take off for any depreciation in this regard, for our home.
On the flip side, the 3 comps she used were 6, 10, and 14 years old, compared to our 3 year old home, and no adjustments were made.
I just think there needs to be more formula-type approaches in a certified appraisal. As it stands, it looks like there is too much discretion left to the actual appraiser, and if they are not very familiar with a specific, local market, it makes it difficult to get an accurate read IMHO.
BTW, we are located near the Montclair area in PW County.
PW County has a lot of foreclosures maybe the values aren't as strong as you think.
PW County has a lot of foreclosures maybe the values aren't as strong as you think.
Edward, you are right there are still a good amount of foreclosures/short sales. Much better than it was. In our area, though, new home construction sales has been excellent over the past 3 years, and still dominate the immediate area sales trends.
The underwriter at the lender can declare the appraisal invalid, with minimal fanfare. The problem, they can't challenge the appraisal and then not pick up the charge on the second appraial. It is also very possible, your area has experienced a rash of short sales and foreclosures, which has and continues to happen in the Metro DC area. While overall, the area is holding it's own, some neighborhoods are definitely treading water where short sales and foreclosures have become the market. The appraiser cannot hop-scotch over those in search of non distressed sales.
As for slightly "used" new construction vs. the new, to be built, construction selling down the road......I have 2 homes over in Port Potomac in the exact situation you describe. I have found problem is in the (very many) options and as others stated, your home is not going to be going for the same price as the new, never lived in home. Another problem with new.....almost all new homes are not part of the MLS database. The builder is not going to go out of their way to assist some random appraiser that's trying to use their home as a comp. Most of the builders have a admin assistant, located far away from that subdivision that has access to all the closed sales. The site agent isn't handing out that cleark's number. So, if the record of the sale isn't accessible, it's not a comp and not part of your appraisal. The information the appraiser needs is considered confidential by the builder and is only released to assist in the appraisal of another new home. In the same respect, the lenders on those new homes aren't going to share data either.
As for slightly "used" new construction vs. the new, to be built, construction selling down the road......I have 2 homes over in Port Potomac in the exact situation you describe. I have found problem is in the (very many) options and as others stated, your home is not going to be going for the same price as the new, never lived in home. Another problem with new.....almost all new homes are not part of the MLS database. The builder is not going to go out of their way to assist some random appraiser that's trying to use their home as a comp. Most of the builders have a admin assistant, located far away from that subdivision that has access to all the closed sales. The site agent isn't handing out that cleark's number. So, if the record of the sale isn't accessible, it's not a comp and not part of your appraisal. The information the appraiser needs is considered confidential by the builder and is only released to assist in the appraisal of another new home. In the same respect, the lenders on those new homes aren't going to share data either.
Thanks SmartMoney for the info. That data, however, is readily accessible via the PW County Property Tax Records site, you can run a simple home sales search for our neighborhood and all of the new construction sales come up as well. The appraiser should be checking the tax recorded sales and the MLS data they have access to, in my opinion. I'm not sure if they are required to check both, but I would if I was an appraiser to get the most accurate data, and not just rely on one solely, as it may not have the most up to date sales, etc.
Broker came back and said their appraisal review team did not think there is enough for a rebuttal on the original appraisal. The appraiser did note one area of a "declining" market, for the category of "Median Comparable Sale Price". Again, I think this determination was reached simply on the fact that the 3 comps used were smaller, older homes, which of course will carry a lower "median sale price". It's silly that she used these comps, and none of the ones on my street, simply because those first 3 were slightly more recent. (Sold 2 months vs 4 months ago)
Oh well. It's frustrating to waste $400 on an appraisal and to have the re-fi fall through. Now I have to either roll the dice with another broker/appraiser, or wait a few months to make sure the "3 most recent sales" (regardless of lack of similarities apparently) are favorable.
Thanks SmartMoney for the info. That data, however, is readily accessible via the PW County Property Tax Records site, you can run a simple home sales search for our neighborhood and all of the new construction sales come up as well. The appraiser should be checking the tax recorded sales and the MLS data they have access to, in my opinion. I'm not sure if they are required to check both, but I would if I was an appraiser to get the most accurate data, and not just rely on one solely, as it may not have the most up to date sales, etc.
Absolutely, but you've seen the site. Not much there in the way of information. Granted, it has the most important bare bones, square footage, but nothing about builder paid closing costs, which are definitely relevant when builders are still paying 10K, or giving 10K to 15K non-cash discounts. Financing isn't provided, nor is the date of contract, which could be up to a year before closing. When appraisers pull comps from the MLS, the terms of the sale are suppose to be in the MLS. Even then, they still pick up the phone and interview, verify and validate the information provided by the Realtors, and that's with a lot of detail already in the computer. New homes aren't exactly big holes in their grid, but enough holes to disqualify the comp to be considered in underwriting.
the fact that the 3 comps used were smaller, older homes, which of course will carry a lower "median sale price". It's silly that she used these comps, and none of the ones on my street, simply because those first 3 were slightly more recent. (Sold 2 months vs 4 months ago)
Yep, that is how comps work.
Quote:
Originally Posted by ZakAttack
or wait a few months to make sure the "3 most recent sales" (regardless of lack of similarities apparently) are favorable.
Think about your logic here. If my exact model, lot size, neighborhood home sold 2 weeks ago, versus a 14 year old home from 1.5 miles away that sold 1 week ago, it is not inappropriate to use the more comparable first home in this scenario, since it is still well within an acceptable and relevant sales window, not to mention a much better sales comparison as well as a much more accurate representation of my home's value, worth, and estimated marketability.
I've already had several professionals review this appraisal and agree there are glaring issues. I don't know from what experience you speak to, but it's obvious you're just trolling.
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