Second Appraisal (contingency, agents, second mortgage, accept)
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But the reason the second appraisal came in so much lower is because the second appraiser totally missed my backyard which is a good size. I would think they would get someone else out here quickly to get a "correct" second appraisal. Wouldn't you think? I'm trying to get in touch with my realtor - left a few voice mails and e-mails - no call backs.
When you say "totally missed my backyard which is a good size", what do you mean by that? The appraiser never went out back or just put down the incorrect dimensions?
When you say "totally missed my backyard which is a good size", what do you mean by that? The appraiser never went out back or just put down the incorrect dimensions?
How much difference are you talking about?
In the normal process a significant difference in the size or quality or both of the backyards of comps would be treated as an adjustment. If either exists and there is no adjustment made it is a mistake.
Area can be a correction of $2.00 to $20.00 per SF depending on where and what kind.
I mean he completely missed that we even had a yard!
He recorded "no yard"
Actual dimensions are approx. 90' x 35' with large shed & new kids
swing set included.
Ok, we last spoke to our realtor on Wednesday afternoon when he called and told us that settlement was not going to happen on Thursday. I e-mailed him Wednesday night and asked that he e-mail me exactly what happened so I have it in writing. He e-mailed me Thursday morning saying he would do it as soon as he got to the office. I haven't heard from him since. I have left e-mails, voice mails on his cell and at the office. He is always out of the office, on his way in, on the other line, etc. I just want to get an update. My agent for my new home has left him multiple voice mails as well and he has not returned her calls either. I called the agent who represents the buyers for my house and he said they were looking at another appraisal being done on 12/31 and a new settlement date of 1/7. Why is my realtor avoiding me?
You need to immediately go straight to the Principal Broker and explain the situation about your agent not returning calls and emails and demand that something be done to correct this. It's time to make the wheel squeak. Short of death, there is no legitimate reason for you agent not to be promptly returning your communications, especially with the timeframes you are dealing with. You would probably be better off sitting down with the Principal Broker face to face to solve the problem. This would probably reduce your anxiety and frustration levels faster than posting on here and waiting for something to happen. Good Luck!
Ok, we last spoke to our realtor on Wednesday afternoon when he called and told us that settlement was not going to happen on Thursday. I e-mailed him Wednesday night and asked that he e-mail me exactly what happened so I have it in writing. He e-mailed me Thursday morning saying he would do it as soon as he got to the office. I haven't heard from him since. I have left e-mails, voice mails on his cell and at the office. He is always out of the office, on his way in, on the other line, etc. I just want to get an update. My agent for my new home has left him multiple voice mails as well and he has not returned her calls either. I called the agent who represents the buyers for my house and he said they were looking at another appraisal being done on 12/31 and a new settlement date of 1/7. Why is my realtor avoiding me?
Why aren't you at his branch and speaking directly to the manager? I did that when I had a problem w/my former realtor from REmax. Got things taken care of immediately.
You have to be proactive and shake things up yourself. Get on the phone or down there immediately to get this straighten out.
I'm sure he will cash his check immediately once he receives it right? So, get on the stick and make him earn his money.
You need to immediately go straight to the Principal Broker and explain the situation about your agent not returning calls and emails and demand that something be done to correct this. It's time to make the wheel squeak. Short of death, there is no legitimate reason for you agent not to be promptly returning your communications, especially with the timeframes you are dealing with. You would probably be better off sitting down with the Principal Broker face to face to solve the problem. This would probably reduce your anxiety and frustration levels faster than posting on here and waiting for something to happen. Good Luck!
I would be willing to bet that the original appraisal WAS inflated. That is one of the reasons a second one was ordered. They determined that the appraisal was inflated by using an AVM (Automated Valuation Model) which provided a range of values in the neighborhood. Unfortunately, it has been my experience that those use everything, including foreclosures, in their modeling process. Obviously this skews the range of values and develops an artificial median and mean. Also this modeling doesn't take into consideration unique features like an over sized yard, swimming pools, landscaping, etc, all of which adds value, but is not tracked by MLS or county records.
Then the lender orders a second appraisal from an AMC (Appraisal Management Company) that looks for the cheapest and quickest appraiser they can find. The appraisal you paid $350 for, they are paying the second appraiser $200 or less, with a 24 hour turn time being the primary requirement. The appraiser does not have the time or incentive to do the necessary research to arrive at a true opinion of market value. Further, an experienced appraiser won't take the assignment under those terms so you are stuck with an inexperienced appraiser or an unethical one. Often this kind of appraiser feels they are not doing their job unless they are cutting the value of the first one.
I am not sure what the remedy is..........having both the original and second appraisal reviewed by someone YOU hire would be a start. Filing a complaint with the state board, with the complaint based on the reviews YOU had done would help as well. That would help clean up the appraisal profession, but not too sure what that will do to help you close.
BTW, I AM an appraiser, with 25 years experience, I teach at an appraisal school, and my practice is primarily review appraising. My clients include Fannie Mae, Freddie Mac, Indymac, and Citi. I also am a hearing officer for the OREAB and have testified in more than a dozen cases this past year in hearings before the appraisal board.
After calling and leaving messages with the broker/manager (who never personally called me back) and after calling our realtor and threatening legal action our agent finally called. Here is the latest...
He said we are at the mercy of a mortgage broker who lied to him and unfortunately he passed bad info. on to us. He said the 1st lender is out and now Bank of America is taking over the loan process. They are meeting tomorrow to review the loan, appraisal and finalize the matter. Our agent also faxed us another addendum extending the settlement date to 1/7. He said it is his understanding that the mortgage co. has a verbal ok on the appraisal but due to past bad info. he will be getting this confirmation in writing and agree to settle this asap.
What a mess. Hopefully tomorrow I will have better news.
Again, this is SOP. When the broker gets turned down by his original lender, he "shops" the package to others until he knows where he can get it funded. In the last 13 months, 210 lenders have gone under or quit doing loans through brokers, so this may be one of several delays, as the problem becomes one of finding a lender if BoA won't take it.
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