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Mortgage appraiser errors and omissions
Posted on 1/31/18 at 11:13 pm
Posted on 1/31/18 at 11:13 pm
Posted on the Money board, but need the expertise of the OT.
We did a pre-appraisal based on scope and blueprints. The appraisal came in about 5k short, which wasn’t a huge deal. However, looking at it more in depth I realized that the appraiser omitted the 4th bedroom. The total room count is also off by 2 rooms. I was planning on getting an appraisal at completion, but now I'm wondering how off the original appraisal was based on this error?
He also certified that he inspected the exterior and interior of the house. He stated that all utilities were fully functional, the kitchen and appliances were installed and fully operational, and he did a head and shoulders inspection of the attic. The issue with that is at the time of appraisal, there was nothing but a wooded lot.
Should this be corrected?
We did a pre-appraisal based on scope and blueprints. The appraisal came in about 5k short, which wasn’t a huge deal. However, looking at it more in depth I realized that the appraiser omitted the 4th bedroom. The total room count is also off by 2 rooms. I was planning on getting an appraisal at completion, but now I'm wondering how off the original appraisal was based on this error?
He also certified that he inspected the exterior and interior of the house. He stated that all utilities were fully functional, the kitchen and appliances were installed and fully operational, and he did a head and shoulders inspection of the attic. The issue with that is at the time of appraisal, there was nothing but a wooded lot.
Should this be corrected?
9
Posted on 1/31/18 at 11:21 pm to DCtiger1
Do you really need counsel on this?
Posted on 1/31/18 at 11:23 pm to DCtiger1
so they messed up everything and you are asking if they should redo?
I say no
I say no
Posted on 1/31/18 at 11:23 pm to AUCE05
a simple yes or no would suffice. This is our first time buying a house and dealing with an appraiser. Why be a dick?
Posted on 1/31/18 at 11:27 pm to DCtiger1
The appraiser did a home appraisal on an empty lot and you are wondering if you should question it?
Absolutely you should, and the appraiser should be shot.
DISCLAIMER - DO NOT SHOOT THE APPRAISER
Absolutely you should, and the appraiser should be shot.
DISCLAIMER - DO NOT SHOOT THE APPRAISER
This post was edited on 1/31/18 at 11:28 pm
Posted on 1/31/18 at 11:29 pm to SG_Geaux
quote:
The appraiser did a home appraisal on an empty lot and you are wondering if you should question it? Absolutely you should, and the appraiser should be shot.
I know you’re trying to be funny. But an appraiser will do a future value appraisal based on plans to determine the construction loan amount.
OP. Yes, the appraiser needs to update the appraisal and you shouldn’t give him another dime to do it. It’s one thing to be off by a few square feet. It’s another to appraise a 5/3 as a 4/3.
Posted on 1/31/18 at 11:30 pm to DCtiger1
quote:
Should this be corrected?
I don't know.
Does the number he gave you negatively impact you?
Do you like being blatantly ripped off and lied to?
Personally, if he gave you in writing that certification, I would demand a refund AND report his arse to whatever relevant accreditation organization is involved here.
Posted on 1/31/18 at 11:32 pm to Golfer
quote:
But an appraiser will do a future value appraisal based on plans to determine the construction loan amount.
If I am taking the OP literally, he claimed to have verified the utilities and appliances of a lot that had yet to have broken ground.
Posted on 1/31/18 at 11:33 pm to DCtiger1
From the info you just relayed.. frick yea you should contest.. like all professions, there're good and bad.. you're story sounds like you got a bad one
Posted on 1/31/18 at 11:33 pm to SG_Geaux
The appraisal was done based off plans and scope. Other then the errors, it seems screwed up that he would certify he inspected a property that didn’t exist. However, I don’t know how this all works. Maybe that’s standard language that he forgot to remove? It just all seems lazy and inaccurate. The appraisal cost me 550, and I feel like they or my mortgage company should cover the cost to correct it.
Posted on 1/31/18 at 11:43 pm to DCtiger1
quote:
it seems screwed up that he would certify he inspected a property that didn’t exist.
No.
He has to appraise it just like a finished house because if he didn't put those things in (such as it wasn't inspected and none of the appliances were in and/or non functional) then the value would be less as those things affect the price. The inspection part counts towards him starting the condition of the house compared to the comps and the appliance value is self explanatory.
They have to assume a lot on a new construction appraisal and base it off of the blueprints and the stated finishes. It's perfectly acceptable to do so.
About the only thing OP has is why did the appraiser miss a room but his other concerns are unfounded.
This post was edited on 1/31/18 at 11:47 pm
Posted on 1/31/18 at 11:49 pm to Volvagia
quote:
If I am taking the OP literally, he claimed to have verified the utilities and appliances of a lot that had yet to have broken ground.
Do some research instead of spouting off on something you know nothing about. They have to do so and it is perfectly acceptable to do so on new construction appraisals. The lender wants a "what if" based on blueprints, finishes, comps, etc.
If they didn't assume these things then no one would ever be able to get a construction loan ever again as it would be just lot appraisals.
This post was edited on 1/31/18 at 11:51 pm
Posted on 1/31/18 at 11:54 pm to stout
I realize all of that. But did you even see what I said about taking what he said literally?
Granted, I’m not super familiar with the field, but I’d be interested to learn the rationale behind some industry parlance where saying “the kitchen and appliances were installed and fully operational” is applicable to an empty lot.
These kinds statements combined with missing rooms altogether implies to me that he isn’t even half assing a job. He isn’t even doing it.
Granted, I’m not super familiar with the field, but I’d be interested to learn the rationale behind some industry parlance where saying “the kitchen and appliances were installed and fully operational” is applicable to an empty lot.
These kinds statements combined with missing rooms altogether implies to me that he isn’t even half assing a job. He isn’t even doing it.
This post was edited on 1/31/18 at 11:57 pm
Posted on 1/31/18 at 11:56 pm to Volvagia
quote:
but I’d be interested to learn the rationale behind some industry parlance where saying “the kitchen and appliances were installed and fully operational” is applicable to an empty lot.
quote:
I realize all of that.
Apparently you don't "realize all of that"
Posted on 2/1/18 at 12:00 am to stout
When the statement is the ability to appraise prior to build?
Yeah, I realize that. Which was the bulk of your statement.
That has nothing to do with the confusion behind some possible alternative meaning behind certifying the installation of applicances in a hypothetical house.
What exactly is he certifying? That the letters “DW” on the blueprint he was handed was referring to dishwasher?
Yeah, I realize that. Which was the bulk of your statement.
That has nothing to do with the confusion behind some possible alternative meaning behind certifying the installation of applicances in a hypothetical house.
What exactly is he certifying? That the letters “DW” on the blueprint he was handed was referring to dishwasher?
Posted on 2/1/18 at 12:01 am to Volvagia
quote:
but I’d be interested to learn the rationale behind some industry parlance where saying “the kitchen and appliances were installed and fully operational” is applicable to an empty lot.
He’s doing an appraisal for the lender as if the house has been completed. Thus those responses.
The OP may even be doing a single close so he won’t need another appraisal. Just verification that the stated appraisal is complete.
quote:
These kinds statements combined with missing rooms altogether implies to me that he isn’t even half assing a job. He isn’t even doing it.
The missing room is the only thing in the appraisal that I’d have him fix. And it may just be as simple as a typo.
Posted on 2/1/18 at 12:05 am to Golfer
quote:
He’s doing an appraisal for the lender as if the house has been completed. Thus those responses.
Huh. Interesting.
Figure it would be phrased “value if the following is installed and operational” as opposed to “I have certified it’s installation and function in my appraisal”
This post was edited on 2/1/18 at 12:06 am
Posted on 2/1/18 at 12:06 am to Volvagia
quote:
That has nothing to do with the confusion behind some possible alternative meaning behind certifying the installation of applicances in a hypothetical house.
It's pretty simple. If he didn't "certify" there were new and functional appliances then the assumed value of the house would be less. The program they use will deduct if he doesn't check that little box that certifies the appliances are there and functional.
You are digging into something that has been industry standard across the entire nation for decades when dealing with new construction appraisals and loans. It is 100% acceptable to assume these things and accept that they will be there based on what they were told by the OP or builder when the appraisal was ordered. If for some reason OP doesn't install a dishwasher, then the final appraisal before closing will reflect a different value.
Not sure how else to explain it to you but feel free to keep digging a hole.
Posted on 2/1/18 at 12:08 am to Golfer
quote:
The OP may even be doing a single close so he won’t need another appraisal. Just verification that the stated appraisal is complete.
If this is the case, and he can avoid PMI, he needs to get the room added obviously.
Posted on 2/1/18 at 12:08 am to Volvagia
The appraiser still goes by the house at certain intervals to verify progress and approve draws for the construction.
The OPs appraisal should have an as-is value and a completed value. Loan is based of the completed (future) value and he won’t need another one done if he’s just doing a one-time close.
The OPs appraisal should have an as-is value and a completed value. Loan is based of the completed (future) value and he won’t need another one done if he’s just doing a one-time close.
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