Aldeer.com Forums Alabama Deer Talk Aldeer General Forum Appraisal coming in low

That's pretty much right. I've seen probably 8 that appraised for exact selling price, one that appraised low and one that appraised for much more. Appraisers shouldn't know the agreed selling price but more times than not, they do.

Did he provide documentation? When I bought my house, the bank sent an appraiser as part of the loan approval. His estimate was backed up with plenty of reasons (comps, type of construction, etc.) of how he arrived at his appraisal.

So exactly what data are you using to determine if the appraiser is actually low. Have you found more recent sales of homes that are more similar to yours than the comps he used? If so, did you show them to him and ask why he did not consider them?Even if you found new comps do you have the knowledge to accurately analyze them and make market supported adjustments for any dissimilarities between your home and the comp? Accurately valuing a property is often not as easy as it may appear and there is always some subjectivity because the market is far from perfect.Especially, I assume, in more rural areas with fewer sales and large differences in lot sizes and home types.

Of course the guy may just be a poor appraiser, there are plenty out there. I have been an appraiser for over 30 years but have not done a house in over 25 and am very grateful for it. Governmental regulation has pretty much strangled the ability of the residential appraiser to actually appraise, its mainly checking boxes. It also destroyed the relationship between the appraiser and the lender. At one time the lenders could weed out the incompetent, and did, but now it is simply how fast and how cheap.

I hope you find a solution to your problem.

How accurate is the Zillow app ?

Pretty good; I found comps with it faster than my agent.
Also, listed my house there and sold it quickly. Real estate agents don't hold all the chips anymore.

Had one done last week b/c first mortgage company was smoking crack. Second one came back 80k higher!

He very well may have been.I get to sit in continuing education for three days every two years with mainly residential appraisers and there is usually a bunch I don't think I would let in my house.

I'm basing it on the fact that you can't buy a comparable house for what he's saying it's worth and all the comps he's using aren't comparable.

You just need to hire your own work done and have a second appraisal performed on the property from a reputable person who you trust and no try and influence that process.

It will cost a couple hundred but you'll have it at that point. If it is the same as the guy you don't agree with then you have your answer. Nobody likes to lose money on their house but it seems to have happened more in recent times.

Maybe your Realtor is the real idiot when they told you what you should list the house for. You found a buyer so maybe that is not the case... or maybe both Realtors are idiots and the buyers are clueless.

Lot of different scenarios we can break down here, but there is nothing worse than some jackleg home inspector/appraiser/lender, etc. when you are dealing with selling a home.

Get a 2nd opinion.

Could not agree more. The real estate business is about as crooked as banking.

Their zEstimate is more often laughable than accurate

ive always hired my own appraiser and i talk to them before i have it done letting them know if im trying to get a high or low amount, while i was negotiating there price, always have gotten what i needed, i say get another appraisal by someone you have tlked to first and know will work with you , there are tons of little things they can do to sway a report one way or the other

Sounds like he's low or yer taxes are too high. Property taxed over 90% of market value used to be rare in most places, not sure now.

Your certainly free to buy your own appraisal, but that will not do anything to help the sell of your house. Their lender randomly picks one of their own pre-approved appraisers.
The govt controls banks, banks control appraisers.

Think there might be some dots connecting the two?
Bill Clinton threw the real estate market into a tailspin when he required banks to loan money to folks that weren't qualified.

As Remington270 states, there’s not much he can do. He’s not really a party to the deal, which is between the bank and the borrower. The appraiser is working for the BANK, not the borrower, and not him. That said -
1 – In order to get an appraiser to reconsider an appraisal, you need CONCRETE evidence that his is substandard. “It’s worth more, and you used bad comps.” won’t change anything. Either math errors, physical mistakes in the description of the subject or the comps, or better comps are going to have to be presented. To be better, the comps must be more similar to the subject than the ones he used – ie, require less adjustment (closer to the same age, closer geographically, more recent sales, more similar in size, etc, and DOCUMENTED – date of sale, square footage, room count, source of documentation. “I heard the house down the street sold for X” doesn’t cut it.
2) I’m not saying that ToddMcGill doesn’t hire his own appraiser…..but since 2009, STRICTLY enforced by the FDIC, any prior contact between the appraiser and a party to the transaction MUST disqualify the appraiser and the appraisal. Most banks now have appraisal review departments, or hire independent contractors, to hire and review appraisals, and serve as a “referee” between borrowers (and overzealous loan officers) and appraisers. If you want to hire your own appraiser to argue with the first one, good luck.
3) As to what the banks want; in truth, if they have a bias….. it is to see the loan close. Second, they don’t want to see any drama. That means if an appraiser shuts down a deal….he’d better be right. There WILL be questions, and there WILL be complaints from buyers, sellers, and loan officers. Appraisers who cause drama without good reason don’t stay on the bank’s list for long.
As to appraisers not seeing the contract - if I couldn't see the contract, I didn't take the job. My problem job was with the seller/owner lying to me in order to make SURE the value worked.
I grew up in the appraisal business, have been doing it full time since 1989, in charge of appraisal reviews within the state of Alabama for over 5 years working for a regional bank. Full time commercial as a fee appraiser, but I’ve seen a few residential appraisals in the past few years. Generally, what little residential I see is already a problem.

My house appraised for 299k when I last refinanced to rid PMI. Six months later, I applied for a line of equity and it appraised for $212k.

The comps were nothing like my house (slab garden homes) and in different cities. It was such a cluster the Cu paid for another appraisal for me.