Bogus home appraisal

[FADEC]

With the super low interest rates, I decided to refinance my home mortgage. Company has been great and the rate is low.


Last week the appraiser came out and looked the house over. Got the appraisal yesterday. It was MUCH lower than I anticipated. We had paid the house down quite a bit, so it was kind of a moot point as the amount financed is much lower than the bogus appraisal.


My house is less than three years old. Notable items in the appraisal:


He had the house at 2200 Square foot. It's over 2600.


Had garage as a two car. It's a four car.


Had one fireplace. We have two.


Has it as three bedrooms, we have four.


Appraised pool at 20k. It is a high end pool, from a very respected pool builder, and needless to say it was quite a bit more than 20k installed two years ago.


If I put the house up for sale at the appraised price, it would sell immediately.


Thoughts?

 

[2strokeNorthstar]

If your not selling, what does it matter? He may have felt the same way. Houses in our area consistently sell over list / appraisal price.

 

[FADEC]

If your not selling, what does it matter? He may have felt the same way. Houses in our area consistently sell over list / appraisal price.

No not selling. No excuse for a poorly done appraisal.

 

[Leo99]

Guess the first thing is why do you care? What matters is what your homeowner's insurance has it appraised at should something bad happen to your house. How can this low appraisal harm you?

 

[JC1]

Was the appraiser sent by the finance company? I wouldn't worry about it unless it actually created issues for you.

You got what you wanted which was a lower rate. The appraiser sounds like some of the home inspectors that give the profession a bad name.

 

[FADEC]

Guess the first thing is why do you care? What matters is what your homeowner's insurance has it appraised at should something bad happen to your house. How can this low appraisal harm you?

Really! What would the price difference be in NJ for a 2200 Sf house versus a 2623 Sf. house?? I bet quite significant.

 

[Leo99]

Really! What would the price difference be in NJ for a 2200 Sf house versus a 2623 Sf. house?? I bet quite significant.

Absolutely huge. And if it was my homeowners insurance with a low appraisal, I'd be protesting it. As long as your insurance company knows how much your house is worth and your refi went through all should be fine or am I not correct?

 

[Wolf359]

They do this all the time. He's actually doing you a favor, sometimes those refi end up being the basis for property taxes.

 

[JeffKeryk]

Did you pay for this appraisal? If so, I would make them redo id.
If it is an appraisal paid for by the bank, it is just to secure the loan. So it doesn't mean much.

 

[2strokeNorthstar]

No not selling. No excuse for a poorly done appraisal.

Agree, no excuse since you are paying for it . There are lousy workers in every industry though. Especially when they know what they put down doesn’t matter much.

 

[FADEC]

Did you pay for this appraisal? If so, I would make them redo id.
If it is an appraisal paid for by the bank, it is just to secure the loan. So it doesn't mean much.

It was paid for by me $550. It doesn't really mean much or change anything. It's just a matter of principal. Seems like most of us on here take pride in our homes, cars, boats etc. I guess we all want top dollar.

 

[JeffKeryk]

It was paid for by me $550. It doesn't really mean much or change anything. It's just a matter of principal. Seems like most of us on here take pride in our homes, cars, boats etc. I guess we all want top dollar.

Then I would point out the obvious mistakes and make them redo it.
You did not get what you paid for.

 

[Wolf359]

It was paid for by me $550. It doesn't really mean much or change anything. It's just a matter of principal. Seems like most of us on here take pride in our homes, cars, boats etc. I guess we all want top dollar.

They do this specifically because they don't want to put their neck out there for no particular reason. You never actually get the real market value. They're just rubber stamping things. You basically get the loan and they collect the fee. If it were a sale, they'd have to work harder at justifying the price. Keep in mind that they always have the paperwork in advance so they know what number they're supposed to hit and they hit it. Known as hitting the numbers and they still do it.

 

[FADEC]

They do this specifically because they don't want to put their neck out there for no particular reason. You never actually get the real market value. They're just rubber stamping things. You basically get the loan and they collect the fee. If it were a sale, they'd have to work harder at justifying the price. Keep in mind that they always have the paperwork in advance so they know what number they're supposed to hit and they hit it. Known as hitting the numbers and they still do it.

Thanks for the info. I didn't know all of that.

 

[FADEC]

They do this specifically because they don't want to put their neck out there for no particular reason. You never actually get the real market value. They're just rubber stamping things. You basically get the loan and they collect the fee. If it were a sale, they'd have to work harder at justifying the price. Keep in mind that they always have the paperwork in advance so they know what number they're supposed to hit and they hit it. Known as hitting the numbers and they still do it.

Still hard to believe they missed the square footage by so much. And geez my 7 year old nephew could count the garage doors. He can count to four.

 

[Lubener]

With the super low interest rates, I decided to refinance my home mortgage. Company has been great and the rate is low.


Last week the appraiser came out and looked the house over. Got the appraisal yesterday. It was MUCH lower than I anticipated. We had paid the house down quite a bit, so it was kind of a moot point as the amount financed is much lower than the bogus appraisal.


My house is less than three years old. Notable items in the appraisal:


He had the house at 2200 Square foot. It's over 2600.


Had garage as a two car. It's a four car.


Had one fireplace. We have two.


Has it as three bedrooms, we have four.


Appraised pool at 20k. It is a high end pool, from a very respected pool builder, and needless to say it was quite a bit more than 20k installed two years ago.


If I put the house up for sale at the appraised price, it would sell immediately.


Thoughts?

Compare that information with your auditor's estimation. That appraisal could mean lower property taxes on the next valuation.

 

[sloinker]

Last time I refinanced it was to a lower rate and lower term. It cost nothing and was done at my dining room table. The appraisal was waived due to the assessed value being 2X what I was borrowing and the large amount of equity I had in the house initially due to a 40% down payment. All cases are unique I suppose but if they got the SF wrong that should be a red flag. The initial county assessment should show the actual SF unless you finished a basement or added an addition without a permit......

 

[JohnnyG]

Look at it this way: If you ever get a propety tax bill that is too high, you can use that as ammunition to contest the assesment.
Most of these guy use Google Earth to do their appraisals now, and it's a double edged sword.

 

[CKN]

Appraisals are subject to what you are borrowing and nothing else. If you were applying for a bigger amount-or you sold and had buyers who gave you want you think it's worth-the appraisal would reflect that (higher amount) as well.

Don't get you feelings hurt over it.

As someone who has bought income properties -I can assure it's all a game.

 

[FADEC]

Last time I refinanced it was to a lower rate and lower term. It cost nothing and was done at my dining room table. The appraisal was waived due to the assessed value being 2X what I was borrowing and the large amount of equity I had in the house initially due to a 40% down payment. All cases are unique I suppose but if they got the SF wrong that should be a red flag. The initial county assessment should show the actual SF unless you finished a basement or added an addition without a permit......

House is exactly as I had it built. Nothing added or subtracted from house.