Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I bought the home (primary residence) in 2008 for 450K, refinanced once in summer of 2010 where appraised amount was 470K. Now, trying to refinance again, this appraiser the bank picked comes in at 400K flat. I couldn't believe it. The local market has been considered "stable" if not increasing since we purchased.
My broker told me I could challenge the appraisal, which I am doing...but I'm just wondering what other options I may have. Can I ask the broker to order another appraisal? I've shown on my appeal facts to support why the appraisal is not an accurate reflection of the sales and market data in my immediate area. I don't want to pay for another appraisal, though. Thoughts?
I bought the home (primary residence) in 2008 for 450K, refinanced once in summer of 2010 where appraised amount was 470K. Now, trying to refinance again, this appraiser the bank picked comes in at 400K flat. I couldn't believe it. The local market has been considered "stable" if not increasing since we purchased.
My broker told me I could challenge the appraisal, which I am doing...but I'm just wondering what other options I may have. Can I ask the broker to order another appraisal? I've shown on my appeal facts to support why the appraisal is not an accurate reflection of the sales and market data in my immediate area. I don't want to pay for another appraisal, though. Thoughts?
You dont have many options. Appraisals are ordered by lenders and not your broker due to the Home Valuation Code of Conduct. You can dispute the appraisal, but more often than not, the dispute is rejected and lender stays with current appraisal.
You can go to a new lender, but you will have to pay for another appraisal.
Here is the section of the (AIR) rule pertaining to disputing & getting a second appraisal:
II. Acceptability of Subsequent Appraisals
A Seller must not order, obtain, use, or pay for a second or subsequent appraisal in connection with a Mortgage financing transaction unless: (i) there is a reasonable basis to believe that the initial appraisal was flawed or tainted and such basis is clearly and appropriately noted in the Mortgage file, or (ii) such appraisal is done pursuant to written, pre-established bona fide pre- or post-funding appraisal review or quality control processes or underwriting guidelines, and so long as the Seller adheres to a policy of selecting the most reliable appraisal, rather than the appraisal that states the highest value, or (iii) a second appraisal is required by law.
That sounds like a pretty high standard to meet, so I can see why Victor's experience has been mostly that they don't accept the dispute. The independent mortgage company where I work would be pretty likely to work with you on it, unless of course our underwriters disagreed with your opinion that the appraisal is considerably off base.
Well, I would definitely say there is "a reasonable basis to believe the initial appraisal was flawed.."
I think the 2010 appraisal was spot on. Homes exactly like ours have been selling consistently at that 450K range, some above. We also made improvements from the original purchase, deck, fence, etc which was factored into the 470K appraisal.
5 homes on our street have sold in the past 3 months, ranging from 430-520K, all similar size 4br/3.5baths. The appraiser didn't use any of these! Are you kidding? Instead, she chose to use a home 1.5 miles away, a REO foreclosure home .5 miles away, and a 3rd smaller home .5 miles away.
Location: Visitation between Wal-Mart & Home Depot
8,309 posts, read 38,776,945 times
Reputation: 7185
Quote:
Originally Posted by ZakAttack
I bought the home (primary residence) in 2008 for 450K, refinanced once in summer of 2010 where appraised amount was 470K. Now, trying to refinance again, this appraiser the bank picked comes in at 400K flat. I couldn't believe it. The local market has been considered "stable" if not increasing since we purchased.
My broker told me I could challenge the appraisal, which I am doing...but I'm just wondering what other options I may have. Can I ask the broker to order another appraisal? I've shown on my appeal facts to support why the appraisal is not an accurate reflection of the sales and market data in my immediate area. I don't want to pay for another appraisal, though. Thoughts?
I would keep that appraisal for the taxing entity, though...
I would keep that appraisal for the taxing entity, though...
Great suggestion. The low ball appraisal you have was done by a state licensed appraiser. If your tax value is higher than that value, use that appraisal to dispute your tax value.
Good idea, however my tax value is still slightly lower than that appraisal. The taxed values in my county are about 10-20% below the street value, which is nice.
I would try another lender. Some lender are known to use appraisers that come in with lower appraisal. Did they disclosed to you how they pick the appraiser?
Are you in VA? Try penfed and see if their rate is competive for you.
Since you obviously know the market value, and the appraiser doesn't; just convince them that they should trust you and not the appraiser.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
