Home Buying in 33418>Question Details

Steven P Wood,  in Jupiter, FL

Should a Home Buyer or Investor that will be purchasing the loan, really Trust the Appraisal made by the?

Asked by Steven P Wood, Jupiter, FL Wed Jan 23, 2008

Appraiser hired by the Home Builder's wholly-owned Mortgage Company? Or is there a Conflict of Interest?

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I had recently refinanced one of my properties and the appraisal hired by my lender did not do any justice to my property by grossly undervaluing it.Though I paid for my appraisal but the appraisal is answerable only to the lender.I had access to it and tried to discuss and ask my appraisal to reconsider it but to no avail.I had to go to another lender and get another appraisal done which came out to be about right.There was a difference of more than 40 k between the two.So you can understand how mad I was at the previous appraisal.There is a happy ending that I have refinanced my home.So whether you are a buyer or seller personally I feel that we all know the value of property but need a stamped approval of the appraisal whose job should be assessing a FAIR market price. In most states the rule is that the appraisal is hired by your lender and the borrower has to pay but has no say and can not dispute the opinion which I think is unfair.
0 votes Thank Flag Link Thu Jan 24, 2008
Steve,

On the surface your concerns are valid. However, within the state of Florida Appraisers must follow specific guidelines that are that are over seen by USPAP (Uniform Standards of Professional Appraisal Practice. This agency regulates the appraisal industry relative to standards, competency, and ethics with regards yo conduct, management, confidentiality, and record keeping.

This would be the route to go if you suspect any violation of your rights. A violation of USPAP regulations could result in a 5-year suspension or revocation.

The "Eckler Team"
Century 21 Almar & Assoc.
100 W. Venice Ave.
Venice, Fl 34185
941-408-5363
0 votes Thank Flag Link Thu Jan 24, 2008
You have no choice. The lenders have lists of appraisers they work with constantly, and put their faith in them. Appraisers are under a lot of pressure after coming out of a market where I'm told 90% of appraisers were asked by mortgage companies they work for or buy buyers or sellers to give a higher appraisal than they thought the property was worth. You canNOT choose your own appraiser in Florida. I don't know how it works in other states. While YOU pay the appraiser, his obligation is to work up a proper appraisal, explain the scope of his work and how he came to his conclusion, and he must use similar neighborhood comparables. There are formulas for comparing values of the same model house, e.g., where one has a full bath and another a half bath, e.g., 2 1/2 or 3 baths. I hope this explanation is clear. MARILYN FARBER JACOBS, Realtor with Lang Realty, mortgage broker with Iberia Mortgage Corp. 561-988-0070. marilynfjacobs@gmail.com
0 votes Thank Flag Link Wed Jan 23, 2008
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