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Old 03-01-2009, 06:54 PM
 
14 posts, read 83,878 times
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I'm buying a house, had to pay for an appraiser to secure a loan. What a coincidence!!! The appraisal came out EXACTLY what I'm paying for the house!
Do they know in advance from the loan officer (or title company) what the selling price is? I've heard of this happening before....what do you think?
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Old 03-01-2009, 07:02 PM
 
Location: Lemon Grove, CA USA
1,055 posts, read 3,485,247 times
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Yeah I'm thinking it is a scam. They know the value before they go into it and I've never heard them being far off the mark, heh.
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Old 03-01-2009, 07:11 PM
 
Location: Pawnee Nation
7,525 posts, read 14,546,328 times
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Quote:
Originally Posted by nikky77 View Post
I'm buying a house, had to pay for an appraiser to secure a loan. What a coincidence!!! The appraisal came out EXACTLY what I'm paying for the house!
Do they know in advance from the loan officer (or title company) what the selling price is? I've heard of this happening before....what do you think?
Yes, the loan officer tells the appraiser how much they need to make the deal work and yes there are appraisers (still) who will break the law and "hit the number."

FWIW, those of us who consider appraising a profession worth pursuing turn such appraisals over to the state appraisal board and do our best to remove them from the ranks of the certified and licensed.

If you are serious about finding out the truth, hire an appraiser to review it. See what the problem is with the appraisal. It could very well be that the house is worth exactly what you paid for it. It could also be that the appraiser illegally hit the number.
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Old 03-01-2009, 07:41 PM
 
Location: Boca Raton, FL
4,852 posts, read 8,323,197 times
Reputation: 5488
Smile Price of home

Quote:
Originally Posted by nikky77 View Post
I'm buying a house, had to pay for an appraiser to secure a loan. What a coincidence!!! The appraisal came out EXACTLY what I'm paying for the house!
Do they know in advance from the loan officer (or title company) what the selling price is? I've heard of this happening before....what do you think?
When the appraisal is ordered, the purchase contract is sent at the same time. The appraiser must take into consideration any seller concessions, etc.
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Old 03-01-2009, 07:45 PM
 
Location: Boca Raton, FL
4,852 posts, read 8,323,197 times
Reputation: 5488
Smile Declining markets

If the home is located in what we call a declining market, the lender will carefully review the appraisal.

The lender may actually ask for a desk review or do a second appraisal if there is any doubt.

If you are dealing with an honest broker on a refinance, the appraiser is not informed of the number needed but in my office, we wait for it to come back.
It is what it is.
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Old 03-01-2009, 07:47 PM
 
Location: OK
2,717 posts, read 6,292,825 times
Reputation: 1844
Quote:
Originally Posted by Bette View Post
When the appraisal is ordered, the purchase contract is sent at the same time. The appraiser must take into consideration any seller concessions, etc.
Yes, FNMA requires us to analyse the contract.

Personally, I don't pay attention to what the contract price is but, as Goodpasture pointed out, there ARE appraisers who "make it work".

Of course, it could also have been a pure coincidence because the realtor priced the property right.
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Old 03-01-2009, 07:57 PM
 
Location: WA
5,293 posts, read 20,709,725 times
Reputation: 5622
I had one situation where I was the buyer and the appraiser knew who I was and felt he owned me so he actually called me and asked what I wanted it to appraise for... when I questioned him he said he had 15% to work with and was ready to help. I told him a number and he used it.
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Old 03-01-2009, 10:42 PM
 
2,873 posts, read 4,020,228 times
Reputation: 1992
I once had an appraiser appraise the wrong unit. Twice. Shockingly they all hit the same appraised value even though they varied in terms of how well kept they were, where they were in a complex and that one had about a quarter of a mile of march view the others didn't. That experience stripped me of any illusions I might have in terms of carefully renderred appraisals. I told the mortgage people (BAC no less) and they said not to worry. Nice???
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Old 03-02-2009, 09:04 AM
 
Location: Michigan
23 posts, read 177,852 times
Reputation: 23
Similar thing happened to me as well. I purchased my home last year for $163,500, which was ~$25K under the asking price; it was a distressed sale. I figured that I was getting a heck of a deal and hoping that the appraisal would come back showing it was worth between $180K and $190K, so that my LTV ratio would be closer to 80% (and the PMI could be cancelled sooner). Well, the appraisal somehow came back to within $500 of what I paid for the house, thus not helping my LTV at all.

Funny thing is, the state assessed the house at $187,000; therefore, I get to pay more taxes on it. It's too bad appraisers and assessors don't use the same figure because I've been feeling like I'm getting shafted (paying higher taxes because of assessed value, while my LTV remains high because of the appraised value).

I also tried to appeal my assessed value in hopes of reducing taxes. I used the appraisal report to try and help my cause, however, the district board of assessors felt I got a really good deal and would not change the assessed value (thus making it sound like the appraiser was wrong in his appraisal).

Currently, after one year of owning the house, I'm in the process of refinancing which required another appraisal. Somehow, the new appraised value of the house shows an increase of $1,000 (to $165K), whereas all other houses in our area are dropping in value by ~10%. Also, our assessed value from the state went down by $12K. Makes me wonder what the true value of our house last year should have been...
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Old 03-02-2009, 10:19 AM
 
596 posts, read 2,495,190 times
Reputation: 201
Quote:
Originally Posted by Bette View Post
When the appraisal is ordered, the purchase contract is sent at the same time. The appraiser must take into consideration any seller concessions, etc.
What do you mean when you say this? **disclaimer: if it is entirely obvious and I'm missing it, I havent had enough coffee yet...
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