Disagreement with Appraisal | TigerDroppings.com

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Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
1792 posts

Disagreement with Appraisal


We're refinancing and trying to avoid PMI. The appraisal came back lower than we would have liked, so we would be bringing more money to closing.

Do I have any recourse in disputing the appraisal outside of just canceling the refi?







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Lsut81
USA Fan
Member since Jun 2005
63130 posts

re: Disagreement with Appraisal


quote:

We're refinancing and trying to avoid PMI. The appraisal came back lower than we would have liked,


Dealt with the exact same thing a year ago...

quote:

Do I have any recourse in disputing the appraisal outside of just canceling the refi?



Advice I was given and it worked was to call the appraiser and talk to him directly. Explain what you are trying to do and where you think that he may have overlooked something. Maybe a measurement or a comp. Even asked that if you send him a few other comps, would he take a look and think about using them in his figures.

He ended up taking a look, admitting he could change a few things, and did so. Said that he was much more open to it since it was a refi and not a sale.


btw, this was after my finance guy spoke with him and they had at it.







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Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
1792 posts

re: Disagreement with Appraisal


Thanks for the info. Unfortunately, we were told by the mortgage company that we couldn't see the appraisal prior to their reviewing it, so it has already sort of gone through. Can the appraiser change things at this point?





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Lsut81
USA Fan
Member since Jun 2005
63130 posts

re: Disagreement with Appraisal


quote:

Unfortunately, we were told by the mortgage company that we couldn't see the appraisal prior to their reviewing it, so it has already sort of gone through. Can the appraiser change things at this point?


My mortgage guy was cool as shit, so he may have done things differently.

But he sent me a copy of it, I looked at it and told him there were errors, thats when he tried to take care of it himself and got shut down. He had to send a formal request to the appraisal company to have it looked at.

He then told me that he couldn't do anything, but I could call the guy and just talk to him man to man. I did that and asked if I could email him the diagram where I think he made errors and then send over a few other comps that I thought were more appropriate. He agreed to take a look.

After looking, he said "Ok, I can do that for you, but you need to formally submit a request for me to change it". So my guy had to do what he originally did and submit the request, the guy then made the corrections and returned it.

Like I said, you just have to be genuine with the appraiser and say something like "I know this isn't my profession and you are a lot more experienced, but I think there may be a few issues in the appraisal and I was hoping you could look at them since we really need to get to X dollars on our refi" Make sure he knows that it isn't for a sale, that it is for you.






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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
55569 posts

re: Disagreement with Appraisal


I had the same scenario where the appraiser fricked up. I email the appraiser very politely and never heard back. I ended up not being able to refi because of this cunts mistake.





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Lsut81
USA Fan
Member since Jun 2005
63130 posts

re: Disagreement with Appraisal


quote:

I email the appraiser very politely and never heard back.


Yeah, I said screw the email, I found his phone number...

At first, I was going to go in guns a blazing, but my finance guy told me to be extremely nice and play the innocent homeowner role. It actually worked.






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guttata
LSU Fan
prairieville
Member since Feb 2006
20007 posts
 Online 

re: Disagreement with Appraisal


It's nice to see appraisers actually being held to a set of standards. The guy who appraised our new build told me they are all being held to a lot stricter standards than they used to.





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Lsut81
USA Fan
Member since Jun 2005
63130 posts

re: Disagreement with Appraisal


quote:

The guy who appraised our new build told me they are all being held to a lot stricter standards than they used to.


They should be... My guy was nice, but he royally f'd up.

He missed about 90 sq feet, which was obvious from his diagram. He didn't account for an entire hallway. The stairs led straight into the bathroom

Then one of the comps he used was a Bank Owned Foreclosure that was only available to investors. My real estate agent said that is a no-no and they aren't allowed to use those.






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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
22533 posts

re: Disagreement with Appraisal


How is it appraisal with regard to what the tax assessor has it peg at? How much more is the appraisal than what your house insured for?





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ColdDuck
LSU Fan
BR via da Parish
Member since Sep 2006
1490 posts

re: Disagreement with Appraisal


Same here on our refi... It did not really affect anything but just pissed me off. We totally redid the workshop and made it a media room... about 600SF. He did not even add a line item for a comp on the appraisal even though every realtor we asked said it should be a special comp probably adding 20K to the cost of the house.

Appraisers are as bad as the TSA. No oversight...






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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
14952 posts

re: Disagreement with Appraisal


Apraisers no longer have to keep finance companies happy to get referral work. And they know they are unlikely to get sued for appraising a property too low, whereas overstating the value can leave them exposed to law suits. Thus, they choose to err on the side of caution.

The problem is that many appraisers are just plain lazy. They do not look for unique features of properties, or circumstances of sales, that distinguish them from comps, and every piece of property is unique, as is every sale.






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Lsut81
USA Fan
Member since Jun 2005
63130 posts

re: Disagreement with Appraisal


quote:

Apraisers no longer have to keep finance companies happy to get referral work.


Yup, they are just put into a random drawing or whatever...

That is one thing that my guy had warned me about when we were trying to come up with a solution. He said "We know what the property is worth, so you can pay another $400 and we can order another appraisal, but there is a chance that we could get the same company and same guy"


Oh, and just thought about this... I got royally fricked when I sold my last house. Appraiser came back 20k under what the buyer and I agreed on. My agent and the buyers agent both called and cussed him out, told him he was WAY off. They were absolutely as furious as I was. He eventually raised it around 12k, but I lost out on 8k because of him.




This post was edited on 2/8 at 5:39 am


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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6131 posts

re: Disagreement with Appraisal


quote:

How is it appraisal with regard to what the tax assessor has it peg at? How much more is the appraisal than what your house insured for?


Keep low appraisal to give to tax assessor if paying more. Ins is cost to rebuild. Varies






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DieSmilen
Southeastern LA Fan
My Rubbermaid Desk
Member since Dec 2007
1272 posts

re: Disagreement with Appraisal


quote:

Apraisers no longer have to keep finance companies happy to get referral work. And they know they are unlikely to get sued for appraising a property too low, whereas overstating the value can leave them exposed to law suits. Thus, they choose to err on the side of caution.



You are 100% correct, AMC's are now obligated to report appraisers when and if there are issues. At the end of the day its an opinion of value, given by someone who doesn't want to get sued or know there are 3 or 4 more sets of eyes that are going to reveiw their work. Underwriters have also required addtional things which hinder the appraisers adjustments. It's really sad having to tell a person the appraisal they received today is an accurate picture of their homes value and the one issued back in 2009 was way off.






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