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I purchased a home late last year. I was back and forth with my agent on the price. He told me that an asking price of 340k was a deal in a half. He said this home will appraised for more than 400k. He was right i received the appraisal a few days later in my email for 400k by the appraiser. Few month later I tried to refinance and chase told me how could I when my appraisal was 340k. Wait the bank has an appraisal for 340k and I have one for 400k. Seemed to me that my agent scammed me,
Well he emailed me a complete appraisal with a copy of his appraisal license.
That sounds like an easy way of having to present proof. I'm not sure what you can get out of this situation else than to report this appraiser and sue him and the company he works for, but I'm not sure what you gain from it. It will cost you money. I would ask a lawyer what you chances are and what you can gain from this. I'm sure this appraiser is in for a lot of trouble and if he still has his job, I'm sure he can say good bye to this one.
Ask some legal advise and go from there, that is my suggestion and report him to the licenses board.
Compare prices from last year to now, the real estate market has suffered a dramatic down turn not just your home. Your home may have a appraised at 400.00 on that day last year, today it is worth less. No reason to "sue or go after" anybody.
I have recently seen appraisals change by as much as 15%- 20% on a house in less than a six month period. The conclusion that is often jumped to is to go after the appraiser. However, in this situation it was more of a timing issue than an appraiser issue. The first appraisal included the three most recent comps(less than three months) as required by the lender, two of which were 'distress' sales that involved owners that had to sell do to personal circumstances that the appraiser didn't know about. An appraisal done four months later included three most recent comps also(but not the same three as before). These three comps did not involve any kind of distress sale but were more reflective as to what was going on in the market. This appraisal was over 15% higher than the previous one.
Another factor is that many lender guidelines on appraisals are becoming much more restrictive, due to what has been happening in the real estate market over the past half a dozen years. Additionally, appraisers themselves are becoming more conservative.
The old saying goes that "the devil is in the details". Before you can determine what really is the reason for a seeming appraisal discrepancy you must take the time and effort to learn the details.
Before doing anything drastic, I would print out the email, take it to the bank and ask for a manager. You two can sit down and compare your appraisals. Like the other post, maybe the bank has something more recent.
Or maybe the bank got your house mix up with another one
Good luck!
I purchased a home late last year. I was back and forth with my agent on the price. He told me that an asking price of 340k was a deal in a half. He said this home will appraised for more than 400k. He was right i received the appraisal a few days later in my email for 400k by the appraiser. Few month later I tried to refinance and chase told me how could I when my appraisal was 340k. Wait the bank has an appraisal for 340k and I have one for 400k. Seemed to me that my agent scammed me,
Can I sue? And Who can I go after?
Can you clarify? Are you saying that when you had the appraisal done for the purchase, the appraiser sent you an e-mail telling you it appraised at $400k, but that same appraiser sent Chase a valuation of $340k?
Did you ever get a hard copy of the appraisal? And then, why would you say your agent scammed you? Was the agent somehow connected to the appraiser? Because most of the time, the bank will hire their own appraiser. Especially a large bank like Chase. So how is it you feel your agent had anything to do with it?
Well he emailed me a complete appraisal with a copy of his appraisal license.
lusidiovany - I'm not sure I'm following this. Who is the "he" that emailed you with the appraisal and a copy of his appraisal license? Are you saying that your agent is also a licensed appraiser?
Also, instead of pursuing a suit immediately, I agree with other posters to take it a step at a time and get a handle on the full scope of the situation. Also, there are appropriate licensing boards that you can contact and lodge a complaint. Depending on the state you're located in, many have funds set up for remediation to the victim. Also, they will take action to remove an agent's or appraiser's license if there's proof of fraud or other intent to harm.
Just for clarification - were there 2 separate appraisals done? Were they done at the same time? Or was there only 1 appraisal, with you receiving one "version" and the bank receiving a different "version"?
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