Home Selling in San Diego>Question Details

Kingfish, Home Seller in San Diego, CA

What are the legal options against an appraiser that make a mistake?

Asked by Kingfish, San Diego, CA Tue Aug 4, 2009

Help the community by answering this question:

Answers

7
Kingfish
You might want to clarify who the appraiser is employed by.

My guess is that you are a seller and the appraiser works for the lender and they are asking you to lower the price, right? This is becoming quite common. In this case, your listing agent is the one who should be fighting for the price (along with the buyer's agent).

Because the lender actually hired the appraiser, you do not have any direct access. The buyer is paying for the appraiser in the loan fees. So this is a buyer issue.

A good listing agent will coordinate the appraisal with the buyer's agent to make sure that they appraiser has current and accurate comparable sales. The complaints that we are hearing about are appraisers using properties that we do not think are really comparable.

The other big issue that has changed since May when the rules were "improved" is that now appraiser are asked to PROJECT FUTURE VALUE. This is causing a lot of problems. What if the market is turning around? What if the appraiser's forecast is wrong?

However, the buyer CAN appeal the results of the appraisal and ask for a review. That may or may not help.

Good luck.!
0 votes Thank Flag Link Tue Aug 4, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Hi all,

If it an HVCC appraisal, you cannot challenge it. Only the lender can order another if they have a question about value. And even the lender cannot talk to the appraiser.

Best,

Mark and Kari Shea
San Diego Real Estate Experts
Foreclosure, Short Sale & Investment Specialists,
Development Opportunities & Traditional Real Estate
0 votes Thank Flag Link Tue Aug 4, 2009
Hi Kingfish
You left out many details out, is the appraisal from the buyers lender?
They are non bias and do not choose sides.
Can you give us more information so we can pin point and answer your questions without guessing.

You can get your own appraisal, they run from $300 to $450.

Hope everything works out for you,

Jes Sierra, B.Sc., Realtor®

http://www.hellomynameisjes.com
0 votes Thank Flag Link Tue Aug 4, 2009
Before accusing an appraiser of having made a mistake, have you ordered your own appraisal? The best way to counter an appraisal is with another appraisal.

Although you've left out lots of details, I suspect you're unhappy with the amount for which your property appraised--meaning it appraised for less than you had hoped. Unfortunately, that's one of the side-effects and realities of selling in this market.
0 votes Thank Flag Link Tue Aug 4, 2009
Hello,

First, we recommend you consult a real estate attorney. Here are the gray areas to sort out:

1. How do you prove a mistake was made?
2. Is it an FHA loan on the purchase?
3. If not, the appraiser was dispatched from the HVCC (we recommend you read up on this) which was formed to create codes for appraisals.

We hope this helps.

Best regards,

Mark and Kari Shea
San Diego Real Estate Experts
Foreclosure, Short Sale & Investment Specialists,
Development Opportunities & Traditional Real Estate
0 votes Thank Flag Link Tue Aug 4, 2009
Hello Kingfish:

Since you appear to be the "home seller" rather than the buyer, and not officially the "client" of the appraiser, I do not think you have any legal options against the appraiser for his/her report.

Perhaps you can give us more information regarding this specific incident, so that we might be able to help?

Many thanks!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
0 votes Thank Flag Link Tue Aug 4, 2009
Hi!

Sorry to hear that you are having issues with an appraiser. I would have to say that your best bet is going to be to speak with your attorney/lawyer about what you options are. I realize that you probably already know that, but without knowing what mistake has been made, it is difficult to give you a better answer.

I am not sure what your situation is with the home that you are selling, but I do know that a lot of home sellers are taking issue with the fact that the appraisals for their homes are coming in at a lower value than they had expected. This is very frustrating for homeowners, especially those in short sale situations, where they have received a higher than asking price offer, from a willing buyer, but the appraisal comes back much lower.

Something to keep in mind in this particular situation(short sale), is that the appraiser is only responsible to their client. If the client happens to be the bank or lender, only the bank or lender will have recourse with the appraiser.

Good luck!
0 votes Thank Flag Link Tue Aug 4, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer