Home Selling in 93703>Question Details

Tanner, Home Seller in Fresno, CA

If you get locked in on a crooked Appraisal (FHA) & you go into Escrow with his crooked appraisal can you still file a complaint with the State

Asked by Tanner, Fresno, CA Mon Aug 22, 2011

on him This guy delibertly manuplated the values & facts to come in at a much lower amount. He is not fit to be an Appraiser and should have his license revolked. He has devastated me and I cannot get out for 90 days. I am forced due to the market to take his Appraisal. He put a very nice home down to foreclosed prices. Can I still file a complaint with the State Appraisal Office if I go into Escrow & take his crooked appraisal amount? He needs to be stopped before he does this to some other poor old person?

Help the community by answering this question:

Answers

5
Don Tepper’s answer
Just because you got a low appraisal doesn't mean the appraiser was crooked. It's happening a lot nowadays.

Why do you think it was "crooked"? Further, how did he benefit from the low appraisal? Follow the money; how did it benefit him?

Further, it might be legitimate for him to compare foreclosed homes with yours. If a buyer came into your community looking for a house somewhat like yours, would that buyer be able to find a foreclosed home for less than the house you're selling? If so, then--unfortunately for you--those foreclosures are comps. They're comparable to yours.

You could always file a complaint with the state regulatory office. But they're going to be asking some of these same questions: What basis do you have for saying the appraiser is crooked?
0 votes Thank Flag Link Mon Aug 22, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
BEST ANSWER
You can file a complaint with the California Office of Real Estate Appraisers. Their website is http://www.orea.ca.gov. You might want to have the assistance of your realtor to help you frame the complaint in such as way as to make a convincing case. Just because the appraisal was low and/or used foreclosed properties as comparables doesn't necessarily mean that the appraiser was "crooked". Unfortunately distressed properties are part of our current real estate environment and they do impact appraisal values. Usually an appraiser will make adjustment for condition of the property when comparing a nice clean traditional sale with a distressed property. However, the adjustment usually is not as much as the homeseller would like to see. Also you may feel that properties were used that were not exactly comparable. An appraiser needs to do what is known as "bracketing" in selecting the comparable properties, meaning that they will select one that is inferior in amenities and size and also one that is superior and then make adjustments when comparing these to the subject property. They also will add in pending sales or even currently listed property for added background. All of this is normal and may feel like it is "unfair" but these are not the kinds of things you would complain about to the Department of Real Estate Appraisers.
What you would point out in a complaint would be things like factual errors like the wrong square footage, missing amenities like a fireplace, airconditioning, pool, patio cover, wrong number of garage spaces, etc. Also if there was no accurate adjustment for condition of the properties being compared with yours, although this is a more subjective issue. I am sorry for you unfortunate situation and hope you can get some satisfaction and hopefully move on from here. Thanks for your question!
0 votes Thank Flag Link Mon Aug 22, 2011
Q: If you get locked in on a crooked Appraisal (FHA) & you go into Escrow with his crooked appraisal can you still file a complaint with the State on him
A: Yes

Q: This guy delibertly manuplated the values & facts to come in at a much lower amount.
A: How did he do that? Did he make a mistake with the square footage? Did he use the wrong number of bedrooms? Did he use similar homes to yours for comps? Did he go outside the 6 month time frame for comps? Did he go outside your neighborhood more than a mile and use homes that were not in any way like yours? What did he do to deliberately manipulate values?

Q: He is not fit to be an Appraiser and should have his license revolked.
A: What exactly did he do that was wrong?

Q: He has devastated me and I cannot get out for 90 days. I am forced due to the market to take his Appraisal.
A: Does that mean you need to sell and are being forced to complete the transaction at the lower price? Is he the one who is devastating you or is it the market that is providing the devastation?

Q: He put a very nice home down to foreclosed prices.
A: If the only comps on the market are foreclosed homes, then those are the real comps. There was a day when foreclosures were NOT used as comps, but those days are gone. In reality, in many communities foreclosed homes represent the actual market values because they are the predominate homes on the market. You may not like it, but it is the reality of the current market. And it’s not just affecting you – it is affecting ALL of us. Also, there are some very nice homes that have been foreclosed. Not all foreclosed homes are “distressed” – just because a home was foreclosed does not mean it is an inferior home or is priced less than market value.

Q: Can I still file a complaint with the State Appraisal Office if I go into Escrow & take his crooked appraisal amount?
A: Yes – but I’m not sure it will do anything.

Q: He needs to be stopped before he does this to some other poor old person?
A: Low appraisals are happening all the time – there are a number of reasons for this, including HVCC. The hardest thing for those who have lived in their homes for years to accept is that the value that was once there is now gone. I run into this all the time. We are in a severely depressed market and, no matter how nice your home may be, or how much sweat and love you’ve put into it over the years, it will not be worth any more than the comparable values of homes around you – regardless if they are normal sales, short sales or foreclosures. It’s just the way it is, unfortunately.
.
0 votes Thank Flag Link Mon Aug 29, 2011
Boy you are really a victim, huh? There are no crooked appraisals. Don't shoot the messenger. If you were 25 or 85 the value would come in the same.

Best wishes, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Mon Aug 22, 2011
Did you have a new buyer? Did the new buyer's lender also say your current appraisal is OK (there were no material deficiencies)?

Here was your original question about your situation: http://www.trulia.com/voices/Home_Selling/What_can_you_do_if…
0 votes Thank Flag Link Mon Aug 22, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer