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Unless it's a VA loan, which are quite common in my market. Then you're stuck with the stupid appraisal.
In my market they call Tidewater on VA appraisals so that we can support value before the appraiser makes their final valuation. Do they not to that there?
In my market they call Tidewater on VA appraisals so that we can support value before the appraiser makes their final valuation. Do they not to that there?
They do but I think it's a complete waste of time. Even when I've had garbage appraisals with good comps to prove value I've never had one reversed. The appraiser certainly isn't going to change the appraisal as that would be admitting they are either incompetent or at a minimum did a poor job on that particular appraisal.
They do but I think it's a complete waste of time. Even when I've had garbage appraisals with good comps to prove value I've never had one reversed. The appraiser certainly isn't going to change the appraisal as that would be admitting they are either incompetent or at a minimum did a poor job on that particular appraisal.
Some appraisers feel that way, but there are a number of reasons why a good comp was not included.
Incorrect information in MLS, or sales that actually closed that still show pending are the most common. I've been given comps for reconsideration that were listed in the wrong county. No problem, sale was incorrect in MLS and not part of appraiser's research, comp added, value reconsidered. Not my fault, or incompetence that a Realtor put a sale 75 miles away.
However, the vast majority of sales submitted for reconsideration are not better, just higher price. I do reconsiderations of value for a number of loan officers and Realtors. Before I review an appraisal, I ask them to give me their best comps. What I see most frequently is, comps already in the original appraisal, sales that are superior, and after adjustments would lower the price, and the most frequent is sales outside the market area.
In order for a sale to be useful in a reconsideration, it has to be better than those in the original appraisal and the basis cannot be price.
Some appraisers feel that way, but there are a number of reasons why a good comp was not included.
Incorrect information in MLS, or sales that actually closed that still show pending are the most common. I've been given comps for reconsideration that were listed in the wrong county. No problem, sale was incorrect in MLS and not part of appraiser's research, comp added, value reconsidered. Not my fault, or incompetence that a Realtor put a sale 75 miles away.
However, the vast majority of sales submitted for reconsideration are not better, just higher price. I do reconsiderations of value for a number of loan officers and Realtors. Before I review an appraisal, I ask them to give me their best comps. What I see most frequently is, comps already in the original appraisal, sales that are superior, and after adjustments would lower the price, and the most frequent is sales outside the market area.
In order for a sale to be useful in a reconsideration, it has to be better than those in the original appraisal and the basis cannot be price.
Again in this appraisal the appraiser picked 3...two of the same model that closed on the same day and an additional one 300SF smaller and 10 years newer. Of the two of the same model one had a casita which certainly required a correction...but after the correction it still was almost 10% higher than the subject.
The third comp after very large adds and subtracts to compensate for size and age came out about .98 of the subject.
The appraiser than removed the high similar model and went with the other two averaging them.
Three more supporting comps had two more than supporting the subject and one about the same as the two used. So of the 6 comps three more than support the subject price and three are a few percent less.
I would also note that the two similar were on a much less desirable location with high traffic and no street parking. That was also ignored.
The appraiser than removed the high similar model and went with the other two averaging them.
Averaging? That is not what appraiser's do.
I would also note that the two similar were on a much less desirable location with high traffic and no street parking. That was also ignored.
Remember: An Appraisal is an OPINION OF VALUE.....the appraiser's opinion, not your opinion.
Averaging the two is the appraisers claim not mine.
And the appraisal was simply a bad job by an appraiser not suited to finding his backside in a phone booth.
To close this one out on a defense of an indefensible appraisal the review committee restated the outcome as we desired. They simply changed the outcome to 1.0 our offer.
Problem solved. Hope the appraiser got his hands slapped. It was a bad piece of work. But no way to tell and I am not going to pursue it.
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