ANOTHER appraisal?

Asked by , Riverside, CA Fri Feb 13, 2009

I paid for and got an appraisal done as part of the process of purchasing a house. $400 later, my house appraised at value. 3 weeks later, my mortgage gal calls and says that the seller's company did some sort of appraisal (I am thinking that this was done based on the info - don't think whoever it was actually went to the property, but I am not sure) and the house that appraised at $250,00 now according to them appraises at $218,000. My mortgage gal said that ANOTHER appraisal would be needed and said if it was one kind (starting with an S?), I would have to pay for it, but if it was another kind (starting with a D?) I would not have to pay for it.

I am very confused and a bit miffed. Why did I pay $400 for an appraisal if that wasn't "good enough" for the seller's company? (I might need to mention that this is a foreclosure). Is this a sneaky trick, or is this something normal? Are my chances of getting this house suddenly in serious jeopardy??

Thanks for the help!!

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4
Jane, , Pasadena, CA
Thu Mar 5, 2009
It is against the law the "readdress" an appraisal as the realtor suggested. Although an appraiser may do that, it would be a violation of their license, and is unethical as well as against the law. The first appraisal was most likely inflated and that was discovered during a desk review from the bank. The agent will likely shop for another appraiser to hit the number she wants. The bank should order the appraisal from an unbaised, ethical appraiser whose fee is not based upon the outcome.
0 votes
Kim, Home Buyer, Los Angeles, CA
Thu Mar 5, 2009
I had the same situation occur during my escrow. Prices fell and a second appraisal was requested by the bank, but I did NOT have to pay for it.
0 votes
, Home Buyer, Riverside, CA
Tue Feb 17, 2009
Hi Grace - thanks for your response.

No, this is not a short sale, it IS a foreclosure, though. I am glad you're confused, too, because I can't seem to figure out why they (seller's company? bank?) would need the second appraisal. I will definitely ask my lender to see if I can get the house at the $218,000 price. That would certainly be a nice break for me.

Thanks again!
0 votes
Grace Hudson, Agent, Canyon Lake, CA
Fri Feb 13, 2009
I am very confused as well. Is this a short sale home? I can't imagine why a Seller would have an appraisal done themselves unless it is a Short Sale and the Bank had the Appraisal ordered. Ok so let me see if I understand this right. You are buying a home and getting a loan on this home. Your lender ordered an appraisal and it came in at the purchase price, which is good. Then the Seller ordered an appraisal and it came in significantly lower than the "purchase price". Now your lender is telling you that another appraisal has to be done at your expense. Is this correct? If this is correct I wonder can you get a copy of the Seller's appraisal and have your lender speak to the appraiser to see if they can put this "new" appraisal into your bank's name, at a fee to you (but a much lesser fee). If so then you will probably be paying a whole lot less since there is a $32,000 differance in appraised value which would save you $32,000. A $32,000 savings would be well worth another appraisal fee but if you can get a discount on that fee that would be ideal for you.
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