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| Contesting an Appraisal Posted by Broke Anybody ever done this successfully? I am getting more pissed. I see some major flaws in the appraisal from an appraiser who is from out of town and doesn't know the market. I am being dinged for $25,000 for location of my home. Which is in an established neighborhood of $200,000-$360,000 homes. The comp they used is in a neighborhood that is being built with 20 lots for sale. I'm baffled. on 5/7 at 3:01 pmReply • Back to Top |
| Send them some comps that you think are better and reason with them. Reply • Back to Top |
| To who? The appraiser or the lender? They included 2 really shitty comps. One was a fire sale in our neighborhood. Bought for 330,000 in 2010 and just sold to move back to New Orleans for $273,100. The other was a $25,000 deduction because of my neighborhood. Which is the 2nd best in town. Are appraisers really this bad? Reply • Back to Top |
| They should be choosing sales in your neighborhood in the last 6 months. ETA: if they can't find enough compareble sales in the last 6 months in your subdivision, then they will try to go to a comparable subdivision. This post was edited on 5/7 at 3:21 pm Reply • Back to Top |
quote: They found the fire sale. That was the only one. The other neighborhood is the problem. They are deducting $25,000 from value because they say the other neighborhood is better. And if they know anything, they know it isn't. Reply • Back to Top |
| Have you did research and found any other houses that sold in your neighborhood in the last 6 months? If there aren't any, you will have a hard time getting them to change anything. Reply • Back to Top |
quote: We only have about 30 in the neighborhood. That was the only sale. Reply • Back to Top |
| To the lender as a starting point. You could also pay for you own appraisal and send to the lender...that might make them budge. Depends on how bad you hate the number. I work with commercial appraisers a lot and that was one response to my hypothetical scenario. Reply • Back to Top |
quote: The extra $50 a month for PMI pisses me off since I know that if I listed my home for what they value it at, it would be sold within the week. Reply • Back to Top |
| With the limited turnover the appraisers hands are tied. What's the appraisal for? Reply • Back to Top |
| I guess when you live in a small neighborhood it can sometimes come back and bite you. Reply • Back to Top |
quote: Refinance. Tried lowering my rate and shortening my years. Reply • Back to Top |
| Did the report contain comparable listings on the market for sale of similar homes? Lenders are looking real hard at comparable listings, as well as the sales. Reply • Back to Top |
quote: I just had a problem with my appraisal while trying to refinance as well. The bank wouldnt sign the loan because of the lack of "comps" in my area. I dont live in a "cookie cutter" house or neighborhood . My house appraised for $205,000 (not a OT balla) and I owe $99,500 on it. The banks underwriters wouldnt sign off on it.  Reply • Back to Top |
| If it really was a fire sale then he/she should not have used it as a comparable as it was not an arms length transaction. Was the home listed in MLS and did it have any kind of agent remarks that would support your claim? If your friends with an agent, you may be able to get them to provide you with information on what comps are out there. I have been holding off doing my refi because the only comparable located in my neighborhood is a forclosure that sold last month for $67,000, with massive foundation issues. I too am afraid of what appraiser I will get and where they will draw their comps. This post was edited on 5/8 at 9:04 am Reply • Back to Top |
quote: Most of them are, generally the good ones get a lot of flak because they don't inflate the price(Not saying this is the case). You'll have to contact the lender about the appraisal rather than the appraiser himself since they paid for it. Reply • Back to Top |
| I think what you consider a "fire sale" is your issue. I'm sure it looks to others as just a regular sale. Reply • Back to Top |
| first never order an appraisal yourself even if the value comes in higher its of no use. the fire sale has to be used if they dont the underwriters will notice it and make them go back and change it. broke i would talk to your lender about buying out the PMI. if you are under 85% LTV it might be worth it to you. the cost of buying out the PMI can be financed in your loan. what bank did you go thru for the loan? Reply • Back to Top |
quote: A fire sale and an arms length transaction are two completely separate things. Reply • Back to Top |
| My fault, I wasn't thinking of a house that actually caught on fire and subsequently sold for less. I was thinking more of a property that sold for less due to the seller needing money fast.(family that needs to settle estate, or someone who inherits a house and lives out of state and is fine taking a lot less just to get rid of it) Reply • Back to Top • Refresh |
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