Home Buying in 53115>Question Details

Katherine Re…, Home Buyer in Delavan, WI

when should your realtor give you your home appraisal when purchasing a house?

Asked by Katherine Reynolds, Delavan, WI Thu Apr 28, 2011

Just how soon can I ?. I asked all the time and didn't get it until after closing. It was valued at 30,000 less than she had told me it appraised for, and I never would have bought it because it was a short sale and has now cost me 40K in repairs (most of which my inspector missed)

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The appraisal is always ordered by the lender. They use it to determine if the home is worth the money you are asking them to lend you. The agents have nothing to do with that. Your lender should let you know how much the house appraised for prior to closing. I have never dealt with a lender that didn't. The lender would have been the one to talk to the agent and the agent passed the appraisal on to you.
Web Reference: http://www.kraushouses.com
0 votes Thank Flag Link Thu Apr 28, 2011
In your last comment it sounded like you were looking at the taxed value. This can not be used as an appraisal because often times the tax value is set by someone who simply drove by the home and knows very little of any about up grades or the general condition of the home. However if a your realtor told you that there had been an appraisal done simply ask is they have seen it or if that is just verbal information that the sellers had gave them.
0 votes Thank Flag Link Tue May 3, 2011
Hi, Katherine,

In most states, Agents have FIDUCIARY duty to their clients - that means they have to put your interests ahead of theirs. Agents in most states are required to Disclose ALL material facts that affect their client and the transaction. Lenders, on the other hand, have no fiduciary duty - they are simply sales people. Your agent had a duty to find out about the appraisal and disclose it to you, even if it threatened the deal. Since it was a Short Sale, it is possible that your agent did not see the Lender''s appraisal, but your lender should have ordered a separate one and shared it with you.

To be fair, it is not unusual in many markets for a home to appraise today for significantly less that it did two years ago. Also, Appraisals are done for different purposes - a refinance appraisal will almost always magically be higher than a purchase appraisal. Go figure! An appraisal is one (qualified) person's opinion of the value of a specific property on a specific day. A two-year old appraisal has no bearing on the value today.

If your inspector was licensed, and if the items missed were covered in the inspection, you may have some recourse. Inspectors can't see inside the foundation, behind walls, etc. Most are not experts on HVAC systems, plumbing, etc. They usually add to their reports that you should hire a professional in those fields to conduct additional inspections in specialized areas. Read the inspection report carefully to see what ISN'T covered, as well as to see what they found wrong.

Good luck.

Doc Stephens, REALTOR
Web Reference: http://TellEllen.com
0 votes Thank Flag Link Thu Apr 28, 2011
thank you, everyone. I didn't make it clear, I guess. My realtor told me the house was previously appraised 2 years previously at $164,000 (but the tax records I received, also after the sale said $136,000). I repeatedly asked her what the new appraised value was, as well as the lender (one owned the other). They told me they didn't have it yet. A week after closing I received it in the mail; it was dated a week before the sale, appraised at 109,000. There was no HUD involvement, just the mortgage company. I would never have gone through with it if they had given it to me prior to closing.
0 votes Thank Flag Link Thu Apr 28, 2011
Your question is a bit confusing to me. You stated that ....."it was valued at $30,000 less than she had told me it appraised for."

What do you mean by "it was valued"? By whom? And I do not want to be disrespectful to you, but I have had many buyers that often confuse the assessed value with the appraised value. I'm wondering if that is the case here. These days - especially if it was a short sale - I have yet to see a home that appraised at the assessed value.

Could that be what you mean?
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Thu Apr 28, 2011

Your real estate agent likely had nothing to do with your appraisal. Appraisals are normally ordered either by the lender or the customer as part of the transaction. If you ordered the appraisal, it would have been paid for by you and gone directly to you...not your agent.

In the event, your lender ordered the appraisal, you would have likely paid for it as well, in your closing fees. If you paid for these services, you should have received the results at some point.

You may be able to determine in you paid for a survey by referring to your HUD statement. This is the itemized closing document that outlined all expeditures related to the transaction.

Good luck,

0 votes Thank Flag Link Thu Apr 28, 2011
As others have stated, the appraisal is the responsibilty of the lender. The only way that your situation could have happened is if you put a substantial amount of money down on the property. The appraisal would then only need to be enough for the amount financed. If this isn't the case, you have some serious lender issues. Hope it works out for you. Kyle
0 votes Thank Flag Link Thu Apr 28, 2011
Unclear, who valued it for less and was there a mortgage involved--keep in mind that your lender would not have provided the loan if the property did not appraise accordingly....
0 votes Thank Flag Link Thu Apr 28, 2011
An appraisal is generally ordered and provided by the lender. They should have provided it to you shortly after it was completed. Did your contract have a financing or appraisal contingency? This would have prevented this from happening.
One note of consolation, an appraisal is an "opinion" of value, it’s not a guarantee or objective fact. Two appraisers will come up with different opinions fairly regularly. I have regularly seen homes with both high and low appraisals relative to where the real determination of value is, what the market brings.
What options you have now may come down to how far you want to take this. An attorney's review may not be a bad thought, the sooner you do, the more options may remain open to you.
0 votes Thank Flag Link Thu Apr 28, 2011
Katherine - I am confused. If you got a mortgage than the appraisal would have been ordered by the mortgage company/broker & would belong to you. Atleast that is how it works in MA.
0 votes Thank Flag Link Thu Apr 28, 2011
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