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Old 08-03-2009, 03:04 PM
 
392 posts, read 1,252,522 times
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We are set to close on Aug 14th on the sale of our house. Our appraisal was done back in May (forget the date). My realtor has been keeping tabs with the appraisal company to ensure everything was ok with our "price." He was told at one point (has it in an email), that we were good to and the house appraised for the value.

I have now come to find out that they are claiming they made a mistake and the the appraisal is $1000 less than the sell price. My realtor contested this with him, and we are supposed to hear back by EOD today. If the appraisal stands, what is my recourse for ensuring that the appraisal company eats the $1k as my realtor feels they will try to go to everyone else to eat the cost. Its a grand, but I am not walkign away with a large sum of money, and that $1k is a big deal to me. I dont think I should have to eat it and feel the appraisal company should since they flat out told my realtor that we appraised good.
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Old 08-03-2009, 03:38 PM
 
Location: Nashville, TN
1,177 posts, read 3,774,809 times
Reputation: 937
Quote:
Originally Posted by Stavs View Post
We are set to close on Aug 14th on the sale of our house. Our appraisal was done back in May (forget the date). My realtor has been keeping tabs with the appraisal company to ensure everything was ok with our "price." He was told at one point (has it in an email), that we were good to and the house appraised for the value.

I have now come to find out that they are claiming they made a mistake and the the appraisal is $1000 less than the sell price. My realtor contested this with him, and we are supposed to hear back by EOD today. If the appraisal stands, what is my recourse for ensuring that the appraisal company eats the $1k as my realtor feels they will try to go to everyone else to eat the cost. Its a grand, but I am not walkign away with a large sum of money, and that $1k is a big deal to me. I dont think I should have to eat it and feel the appraisal company should since they flat out told my realtor that we appraised good.
There is no way the appraisal company is going to eat "the $1k". I'm curious as to why and how your Realtor "has been keeping tabs with the appraisal company". Was the appraisal company hired by the buyer's lender? What does the email actually say, that your Realtor says he has, about the appraisal. Why is the appraisal company communicating with the seller's Realtor. It sounds like we don't have all of the facts here and certain things don't make sense. More information would be helpful.
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Old 08-03-2009, 03:44 PM
 
Location: Pawnee Nation
7,525 posts, read 15,120,252 times
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Quote:
Originally Posted by Stavs View Post
..........what is my recourse for ensuring that the appraisal company eats the $1k ............


How does none sound?

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Old 08-03-2009, 03:46 PM
 
392 posts, read 1,252,522 times
Reputation: 83
My realtor told me that he was in touch with the appraiser in order to get the contract buttoned up. They were taking a while to get back to us, so he emailed them at one point and he was told that the appraisal came back good. Now they are saying its $1k less for whatever reason. As for why and how, I dont know. I'm not a real estate pro, so I I assume he got it from the buyers realtor as. He did say she wasnt getting back to him, so he went to the appraiser himself. I am just going off the information I was given from my realtor during a short conversation as I was at work.
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Old 08-03-2009, 04:02 PM
 
Location: Pawnee Nation
7,525 posts, read 15,120,252 times
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First of all, the appraiser is not the client of you or the Realtor. Any information given the Realtor about appraisal has to be permitted by the lender, otherwise the appraiser could lose his license. If the Realtor says he got information from the appraiser either the appraiser is breaking the law or the Realtor is blowing smoke.

As neither you nor the Realtor are the client, the appraiser has absolutely no obligation to you what so ever. The only client the appraiser recognizes is Lender. The lender uses the appraisal as one of the tools to establish risk....that is a judgment call you have no real input on. Once the lender has looked at all the risk factors they make a lending decision. They look at the appraised value of the property ( bearing in mind they may end up owning it and having to sell it in a hurry), they look at your credit score, they look at your debt to income ratio, they look at your payment history, they look at the stability of your income source. Then they come up with an interest rate and other terms (amount of down payment etc). At which point you take it or leave it. Your SOLE input is right there....you get to take it or leave it. The appraiser has no duty to you whatsoever. Neither does the credit rating companies. All provide risk assessment data.

So you getting the appraiser to do anything, particularly "eat the $1k" is so absurd it's laughable....................so take it or leave it........you decide.
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Old 08-03-2009, 04:21 PM
 
3,029 posts, read 7,352,263 times
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Quote:
Originally Posted by Goodpasture View Post
First of all, the appraiser is not the client of you or the Realtor. Any information given the Realtor about appraisal has to be permitted by the lender, otherwise the appraiser could lose his license. If the Realtor says he got information from the appraiser either the appraiser is breaking the law or the Realtor is blowing smoke.

As neither you nor the Realtor are the client, the appraiser has absolutely no obligation to you what so ever. The only client the appraiser recognizes is Lender. The lender uses the appraisal as one of the tools to establish risk....that is a judgment call you have no real input on. Once the lender has looked at all the risk factors they make a lending decision. They look at the appraised value of the property ( bearing in mind they may end up owning it and having to sell it in a hurry), they look at your credit score, they look at your debt to income ratio, they look at your payment history, they look at the stability of your income source. Then they come up with an interest rate and other terms (amount of down payment etc). At which point you take it or leave it. Your SOLE input is right there....you get to take it or leave it. The appraiser has no duty to you whatsoever. Neither does the credit rating companies. All provide risk assessment data.

So you getting the appraiser to do anything, particularly "eat the $1k" is so absurd it's laughable....................so take it or leave it........you decide.
What he said.
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Old 08-03-2009, 04:34 PM
 
Location: Barrington
49,240 posts, read 35,588,969 times
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I am thinking that your agent, the listing agent, may be communicating with the lender, who hired the appraiser, not the actual appraiser.

I suspect, your agent, the listing agent, has been teeping tabs on the buyer's mortgage commitment, not the actual appraiser.

What is curious is that the value was reportedly adjusted by $1,000 a few weeks shy of closing even though the appraisal was reportedly done back in May. Speculation on my part, that the lender, not the appraiser, is hair cutting the appraised value because the local market has sustained depreciation, since the contract was done.
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Old 08-03-2009, 04:44 PM
 
392 posts, read 1,252,522 times
Reputation: 83
Quote:
Originally Posted by middle-aged mom View Post
I am thinking that your agent, the listing agent, may be communicating with the lender, who hired the appraiser, not the actual appraiser.

I suspect, your agent, the listing agent, has been teeping tabs on the buyer's mortgage commitment, not the actual appraiser.

What is curious is that the value was reportedly adjusted by $1,000 a few weeks shy of closing even though the appraisal was reportedly done back in May. Speculation on my part, that the lender, not the appraiser, is hair cutting the appraised value because the local market has sustained depreciation, since the contract was done.
Thats possible...perhaps I got my facts a little confused and I am going to chat with my realtor more on this.
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Old 08-03-2009, 05:00 PM
 
Location: OK
2,754 posts, read 6,603,345 times
Reputation: 1920
I think Goodpasture (and therefore Steve) and MAM are right on the money. I find it hard to believe that an appraiser would make a $1,000 adjustment in final value, especially several months after the fact.

Other than that, all I have to add is this.

ROFLMAO.
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