Where I made my error in not giving the complete story is spite. If you challenge the appraiser as wrong, your new appraisal might be more accurate in technique but even lower in value. If you are upset that you sold your house for a 20% discount and the appraiser said your home was only worth the low negotiated price, than the appraisal was probably influenced by the bank and the contract price. For example, if you sold your home to your daughter at 50% of its value and she wanted to get a loan for 80% of its value, the bank would strong arm the appraiser into appraising it for it's contract price. But even if the appraiser "did his job" and gave an honest value, the bank (in most cases) would not loan your daughter on the higher value, just the contract price (until it seasoned).
As I said in the other thread:
I just heard a Mark Twain comment the other day, "There are 3 kinds of lies, 1) lies 2) BIG lies and 3) statistics. An appraisal is manipulating statistics.
Here is another joke along that same line:
What is 2 + 2 ?
I asked that question of several people, and these were the answers I got:
A child simply replied "4"
A school teacher replied "4"
A mathematician responded "4"
Then I asked a statistician and the response was:
"Some where between 3.98 and 4.02"
Next, an engineer whipped out his pocket calculator and announced "3.99999999".
Finally, I asked my accountant and he replied,
"What do you want it to be?"
So the question to you is, was this appraisal done before or after you put your home on the market? Was it before or after you had a buyer?
Keep us posted,
You didn't give us a clue as to what you think was done wrong. Just having a lower value than you want it to have doesn't make it wrong. Is it because a year ago it was worth $4xx,000 and today the appraiser says its only worth $3xx,000?
If it is simply a matter of opinion, then its not wrong even if the value doesn't agree with your estimate of value.
Further, you will still have some big hurdles to clear even if a second appraisal reflects a higher price. For starters, the buyer is most likely (depending on your local purchase agreement verbiage) not obligated to wait for a second appraisal to be performed. If there is an appraisal contingency in the contract, the buyer can most likely walk based on the unsatisfactory results of the original appraisal. If the buyer does agree to a second appraisal, he/she will not necessarily be bound to the results. You will probably have to negotiate price again due to conflicting evaluations. There is also the risk that the lender would be uneasy with the discrepency in evaluations. So even if the buyer accepts a new appraisal, the lender might not. Can you provide any specific insight as to why you think the appraisal was performed incorrectly?
I remain curious as to how this appraiser got a license. I never saw something so off as him. That, of course, was bizarre and not the norm. His credibility was so compromised that there was no problem accepting the appraised value provided by the second appraiser.
Sometimes, the appraisers are not familiar with a particular market or are influenced by the purchase price or underwriting guidelines for a specific bank.
It is more than okay to provide additional information for a review and/or request for a 2nd opinion.
I just had a property where the appraisal came in $200,000 under selling price. The funny thing was that the appraiser came in at selling price, but the underwriter cut the value. A second appraiser went out and confirmed the original appraiser's opinion and raised the value.
I have done the same thing with wrong square footage and one and a half story homes verses two story homes. Are you looking for a higher price? Have you seen the details of the appraisal?