"claiming he did the best he could. I would think that a desire to have pride in ones work would compel someone to make corrections, but that doesn't appear to be the case. "
I suspect that often appraisers do want to do their jobs correctly, and most of them have a lot of pride in their work. However, the issue is, is that for the most part lenders are stuck using Appraisal Management Company's (AMC's), these are the company's that Scott Hulen referred to as taking a slice of the appraiser's pie/profit. Well you see when one of these requests to change an appraisal is made, it goes through the AMC's first, then to the appraiser. So there is a bit of a political mess here. The AMC doesn't want to look incompetent for not doing a thorough Quality Control (QC) review or they may not be used by the lender, the appraiser doesn't want to look incompetent for not doing a quality appraisal or they may not be used by the AMC. So admit the mistake by making the correction? Or stick to your guns and justify that the appraisal was done "the right way"? Most pick the latter.
(I would prefer to send you a mock up, but you'll have to rely on my communication skills.)
Visualize a series of COLUMNS, probably 4 or 5;
The First Column is the SUBJECT HOUSE and the others are COMP's.
Down the page we list FEATURES or FACTORS; such as # Bedrooms, # Baths, House Sqft, Lot Sqft, Fireplace, Pool, Roof, Garage, Fencing. Got it?
Now, in each box created, there will be a VALUE: Lets say the subject house is 915 sqft it would get --- or 0. And the first Comp house has 2500 sqft, it might get -100,000; which means that the house is WORTH $100,000 more because of the square-footage. (It is a negative number because the Selling price of that Comp house was approximately $100,000 more BECAUSE of the square footage and we have to deduct that $100,000 to bring them to equity.) Got it?
Now, lets say that the Subject house has $5,000 worth of new fencing and the Comp house has 25 year old OK fencing.: Then the SUBJECT house would get +5,000 and the Comp. house would get --- or 0.
When you go down the page, and enter everything, you get total Comparative Values on the two houses, which allows for the DIFFERENCES.
The two houses DO NOT have to be literally COMPARABLE, we MAKE then comparable with the VALUES.
So the house next door is larger, so what? We made up for that with the values.
Now, if you understand what I just did, then you will understand why;
1.) The two Comp's came so far apart, and,
2.) Why the Lender will not listen to you about the results.
and in fact I will give you a third;
3.) If you hire your own Appraiser, he will end up with about the same numbers!
Also, please do not compare/equate the ASSESSMENT with the APPRAISAL: The ASSESSMENT is based on the LAST SELLING PRICE OF THE PROPERTY which might be last year. five years ago, or thirty years ago.
I hope I've helped.
Good luck and may God bless
You form an opinion based on a series of data, some of which is fact (measurements that the appraiser himself has done), some of which may or may not be fact but is treated as fact (data in MLS listings-- we've all seen agents list square footage of homes as total including the basement, but failing to mention that in the description, or not fairly representing the condition of the home). When actual factual errors are brought to light (like the one that i listed above: in real life a comp has 1000 less sqft than the appraiser stated on the appraisal) the appraiser can shrug it off, claiming he did the best he could. I would think that a desire to have pride in ones work would compel someone to make corrections, but that doesn't appear to be the case.
Sorry, do i sound a little bitter? We vetted everything in the process- the town, the home, the agent, the inspector, the lender. Now someone who i have no control over picking, someone who i have no knowledge of the quality of their work comes along, takes my money, does what i think is a substandard job and torpedoes everything. We're trying out some other lenders now. I hate the idea of having to pay for a new appraisal (not sure that i mentioned above that I'm the purchaser) but it's at least better than letting the whole deal fall though.
Good luck to you!
Unwavering Commitment to Service
Any information that can be verified via public records or MLS should be able to dispute, any information that you had to inside of a comparable home, obtain floor plans of, speak to individual homeowners, etc. would be out of the appraiser's normal scope of responsibility... however from the get go, if that information is provided to the appraiser and you make it easy for them to confirm the validity, then they could potentially incorporate that information into the appraisal.