Question Details

Norm Kyriss, Real Estate Pro in Temecula, CA

Appraisal Problems...Killing Sales....

Asked by Norm Kyriss, Temecula, CA Wed May 7, 2014

Looks like this will disrupt my short sale or just kill it all together. I'm curious why we have to go through a management company regarding comparables and the the actual appraiser that messed it up. I have a home not in a senior community and the appraisers used 3 homes in a senior community. This seems ridiculous to me. Is this standard procedure for appraisers? Appreciate your thoughts.

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5
Annette, hit the nail on the head. Make the appraisers job easy by having some of your own comps ready for them. I wouldn't call them lazy, they just don't mind a helping hand. In my experiences if I have a property that is getting ready to appraise and I feel it could go either way, when I set up the comps for them it has nearly always worked out.
0 votes Thank Flag Link Wed May 7, 2014
Appraisers do want to find out the market value of a piece of property. Often, however, there are additional requirements placed on an appraiser. For example, the lender may require all sales to have sold within 3 months of the appraisal date. Since we are just coming out of the slow period, there maybe a lack of sales and perhaps the only properties that resembled yours was located in the senior community.

If you truly feel that the appraiser was off by more than 10%, then you may want to hire your own appraiser or tell the bank that you are willing to pay for another appraisal from a different source.
0 votes Thank Flag Link Wed May 7, 2014
Sounds like he went after whatever he personally felt was comparable. You can challenge it, just back it up with the comps you used to price the home. Make sure they are as close to the subject property as possible, that's what the appraiser should have done. Maybe the reason the senior community qwas included.

Chris
0 votes Thank Flag Link Wed May 7, 2014
Norm,
Folks are lazy.
Help them.
As Dan hinted, if you have proper, eligible comps, hand them to the appraiser.

Of course, before you do that, take the necessary steps to insure conditions are present so it appraisers at the amount you want.

Your buyer should have been prepared for this consequence and had a pile of cash on hand to keep the deal rolling. As you know, it not about the value, it is about reselling the loan.

Not all buyers have what it takes to participate in the short sale marketplace.
0 votes Thank Flag Link Wed May 7, 2014
Norm,
Sounds like a legitimate reason to dispute the appraisal. I've had some success when I can point out gross errors and supply better comparables. Their is no reason not to try.
0 votes Thank Flag Link Wed May 7, 2014
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