Just curious Paul.

Did you decide on a course of action?

Susan from 98503

Paul,

You are your own best advocate. Get every fact you can! Get on the phone to the original appraiser and find out what he used to measure your house. Was he right? Was the second appraiser wrong? If the first appraiser was wrong - does the original lender care? A loan is a two-way transaction, you and the lender. The lender has to be responsible to some degree for the way they put your loan together. If they based their loan on information that was incorrect from an appraiser that they hired on your behalf - what is your recourse if you can't re-fi now?

In the past, lenders wanted appraisers to only look at recent sold properties for comps, now many lenders have changed what they want to see because of the market conditions. It is not unusual for them to want active comps as well as sold comps. Values have come down since your purchase - so it is not surprising that the appraisal is lower, but you are in a jam and it sounds like the first loan was put together with some "unusual" circumstances.

Get educated about your entire original transaction, figure out what fell through the cracks and where, and be a squeaky wheel until you get the results you need.

Good luck!
Meredith Laws

Paul
You might want to look at the stats in the link below. Just looking at that, it does seem odd to have the overall average go up, and yours go down. i would talk with a Realtor about finding some recent sales and see if they can help you make your case.

If you need a referral let me know and I can make arrangements.

Good luck.

BTW, did you look at the comps they used?

Paul, I agree with Kary, 150ft is not like to make a 40k difference in price. If your area has held up pretty well, I would ask the lender to have a 2nd appraisal done with a different company. I have seen up to 30k differences in appraisals in my area. Also, if you have done any substantial upgrades over the past 2 years be sure to point them out to the appraiser. It's worth a shot! Good luck, I hope it works out for you.

150 square feet isn't likely to make a 40k difference in price, unless the house is very small (e.g. under 1000 square feet).

Alos, your facts are a bit sparse. What did you pay for the place? $230k, $255k?

That said, I'm unaware of any basis for a borrower to have a claim against an appraiser in the type of situation you mention. The appraisal is more to protect the lender, not the buyer. I could be mistaken on that, but I've just not heard of a cause of action against an appraiser for a buyer.