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Old 09-07-2019, 11:00 PM
 
1 posts, read 141 times
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Hi there,


Seeking advice. We bought a house two years ago. At that time, the house was appraised as being 2700 sq ft (appraiser hired by lender). We are now trying to refinance. This current appraiser (again hired by our new lender) has appraised our house as being 2130 sq ft. He quoted an "industry standard" where our 500 sq ft third floor does not count as livable space because it has a sloped ceiling and therefore half of the living space does not have a ceiling height of at least 7 feet. I'm not sure who is correct, but the second appraiser was very specific, and even called out the first appraiser as being incorrect. In Portland, a difference of 550 sq ft makes a significant difference in the value of a house. So it seems to me that the first appraiser has possibly over-appraised our house, and therefore we significantly overpaid (and over-borrowed). I have two questions.


1. Is this grounds for a law suit under negligence (or something else) as this appraiser possibly did not use industry standards?


2. Our appraisal for tax purposes was also at 2700 sq ft, so it seems we are also overpaying property tax. Its been greater than 60 days since that property tax appraisal, but does anyone know if this can be contested in some other way?


Thanks in advance!
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Old Yesterday, 02:34 AM
 
9,056 posts, read 8,261,322 times
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That top floor is known in the business as a bonus room, and is not counted in the sq. footage. As the county records list it at the large sq. ft. measurement, and was apparently shown as such on the building plans by the builder, and the appraiser instead of measuring, used the records for the size.

If other similar homes in the neighborhood used as comparable's, have similar floor plans the fact yours is incorrectly stated including bonus room in your appraisal you are getting the true value of the home in the appraisal, and really have no problem.
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Old Yesterday, 04:17 AM
 
955 posts, read 643,646 times
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First go to your property tax website . Put in your info and see what they say for the size of the house. They did not use your appraiser for this. If they show the 2130 sq ft. then you know they appraiser gave the wrong info. If they show the 2700 sq ft, I would start there asking them about the 2nd appraisers quote of 2130.



Suing will cost money and take time are you willing to spend that? To me get the property tax record fixed is more important as this will cost the most money for the rest of the time you own the house.


As far as over paying for the house, you liked it regardless of the size nothing has changed. Just my opinion.
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Old Yesterday, 08:33 AM
 
452 posts, read 412,739 times
Reputation: 1206
Whether or not the third floor is included in the GLA, the appraiser needs to determine how the market views this type of space. Either, neither or both appraisers could be correct, depending on how the third floor was valued. It's impossible to say without reading both appraisals and knowing the market area.

As for a suing. Don't bother, you were never the client and have no standing to bring a lawsuit.
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Old Yesterday, 10:32 AM
 
5,831 posts, read 1,470,815 times
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Quote:
Originally Posted by cp102 View Post
First go to your property tax website . Put in your info and see what they say for the size of the house. They did not use your appraiser for this. If they show the 2130 sq ft. then you know they appraiser gave the wrong info. If they show the 2700 sq ft, I would start there asking them about the 2nd appraisers quote of 2130.



Suing will cost money and take time are you willing to spend that? To me get the property tax record fixed is more important as this will cost the most money for the rest of the time you own the house.


As far as over paying for the house, you liked it regardless of the size nothing has changed. Just my opinion.
He already said the county has 2700 sf. They pulled this from the building permit, most likely.

I would consult a couple of realtors to ask what industry standards are in that area. I would leave out specifics in case they know the house and the selling agent.

What kind of value difference are we talking do you think?
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Old Yesterday, 10:57 AM
 
Location: Rochester, WA
6,192 posts, read 3,451,189 times
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You don’t even know which appraiser is correct yet — I think it’s way too early to start talking about suing.

Though my mind kindof swirls with curiosity about what your basis for a suit might be…. It seems like the first question to get an answer for is which one of them is actually correct?
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Old Yesterday, 11:19 AM
 
1,855 posts, read 647,987 times
Reputation: 2927
That's a big error.

Was there a change in the law? Change in awareness?

Has your last appraiser had any dings on his record?

Look up other homes like your in your neighborhood. See what their records show.

Do you know of a few neighbors who recently got appraisals that you could ask what transpired?
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Old Yesterday, 11:34 AM
 
Location: Lone Mountain Las Vegas NV
13,353 posts, read 5,111,848 times
Reputation: 5945
We had one of those a decade ago. What happened was the original county appraiser somehow picked the wrong model. The home sketch was flat out wrong. So our client had lived in what he thought was a model C but was in fact a Model B.

When we went to take the listing we were roundly confused and thought we had hit a highly customized unit. After digging around for a couple of days we broke the mystery...the house sketch was not of this house.

The county readily agreed that it was wrong and sent an appraiser out who swiftly confirmed the reality. The county however refused to correct 12 years of over taxing. Basically said we fixed it you should have complained earlier.

Here the living area shown is that of the county assessor. Sometimes wrong but used consistently. Large and complex homes often dispute the square footage but use the county number as the MLS size.
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Old Yesterday, 12:07 PM
 
107 posts, read 100,818 times
Reputation: 155
can you find any comps and/or listings of your home's layout using the larger square footage?
between that, your county records, and your original appraisal- I'd tell the lender the new appraisal should be deemed materially deficient and you want you another one ordered through a different AMC. Or at least a field review completed. see what they say.
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Old Yesterday, 05:02 PM
 
1,855 posts, read 647,987 times
Reputation: 2927
Quote:
Originally Posted by lvmensch View Post
We had one of those a decade ago. What happened was the original county appraiser somehow picked the wrong model. The home sketch was flat out wrong. So our client had lived in what he thought was a model C but was in fact a Model B.

When we went to take the listing we were roundly confused and thought we had hit a highly customized unit. After digging around for a couple of days we broke the mystery...the house sketch was not of this house.

The county readily agreed that it was wrong and sent an appraiser out who swiftly confirmed the reality. The county however refused to correct 12 years of over taxing. Basically said we fixed it you should have complained earlier.

Here the living area shown is that of the county assessor. Sometimes wrong but used consistently. Large and complex homes often dispute the square footage but use the county number as the MLS size.
Amazing. Thanks for sharing. I guess you couldn't all get together and just go ahead and sue.

Very good to know this can actually happen.
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