Posted by Charm_AL on 5/26/05 7:58am
Msg #40465

things that make ya go hmmmm....

Wow! Yesterday was a full day - 6 signings...and during waiting for another, this is what went down. What a can of worms!

The borrower was going to refinance after he bought 3 years ago. We were all waiting on the appraisal to come thru to go to 'final' and get it done last night. Finally, after several phone calls the appraisal is faxed over to the office. 3 years ago the property appraised at 240k....We get the appraisal (done by the same appraiser) back with 160k !!!
The borrower is beside himself and we can't do anything but try and guess what happened???
Many phone calls ensued. The land is 4 plats, could it be that the appraiser made a mistake and didn't include 20k a piece of each plat? That's the only thing I can think of to make such a huge difference in numbers...totally stumped here

Reply by Julie-MI on 5/26/05 8:04am
Msg #40466

Just like the stock market bubble................

In SE Michigan, many of the appraisals are down from a few years ago due to the inflated real estate market. My own appraisal was down $20,000 as those that had to move were giving away their homes. This brings down the comps.

We have a very affluent area near me, Oakland Township. I closed a loan where their appraisal was down $125,000 from two years before.

So it could be an error or it could be real.

Reply by LawrenceOK on 5/26/05 8:24am
Msg #40469

Now I can understand $10,000 or maybe a 20,000 market difference, but $80,000 is a big red flag to me. It's possible the appraiser forgot to adjust for the extra plats but I dought it, considering it's the same appraiser. Just to much of a price difference.

Reply by maryinsocal on 5/26/05 9:01am
Msg #40480

Get another Appraisal done ....

Reply by Charm_AL on 5/26/05 9:23am
Msg #40486

can't get another appraisal...the SS uses one or two appraisers by contract
That was the first thing I thought of and who would pay another $300. for it?

Reply by maryinsocal on 5/26/05 9:27am
Msg #40488

Cancel the deal and go with another SS . Then get another appraisal. That is alot of money for to loose. There are alot of Appraisors to choose from. The cost to get another one far out weighs the amount of money this person stands to loose....Just my opinion......

Reply by Charm_AL on 5/26/05 9:34am
Msg #40491

Mary...

being a mortgage broker myself, we know all that. The lender can only deal with one specific SS. The SS can only deal with their own contracted appraiser.
The borrower needs to get to the bottom of why the same appraiser did this. Otherwise the borrower needs to go to a different lender and pay out another $300 to start over. It makes more sense money wise to try to figure out what's up with this appraiser. His name is being sent to the SS and it will be investigated. Either there was a mistake or he inflated the appraisal 3 years ago and will be fired for it

Reply by maryinsocal on 5/26/05 9:53am
Msg #40497

Re: Mary...

oh...that makes more sense now...I didnt realise it was the same guy that did it 3 years ago. yes that sure makes you go...hmmmmmmmmm....
Thanks for the clarification....

Reply by maryinsocal on 5/26/05 9:54am
Msg #40498

Re: Mary...

Thats what I get for not reading the previous post more carefully...Glad it wasn't a loan doc!
he he he

Reply by Alabama on 5/26/05 10:08am
Msg #40501

Re: Mary...

It does not suprise me at all. It's the wonderful state and economy we live in! Appraisals
are done for different reasons and you can get a value if you need it! But a true value is different! You know that some appraisers give true value and make correct adjustments. Some appaisers don't mind elavating or trying to get a value no matter what it takes to get them there! We all try to satisfy our customers!

Reply by Alabama on 5/26/05 10:14am
Msg #40502

Re: Food for thought

A plat is the lawout of the land mapped out for subdivision or just division. A "parcel" is a described division of land. Not that this makes any difference but

Reply by Alabama on 5/26/05 10:19am
Msg #40504

Re: Food for thought

Sometimes appraisers assume that borrowers just want to mortgage the property that the home is built on because alot of times when property is divided it is done so, so it can be sold
or it can be kept separate from the mortgaged property. Especially if it has been assessed that way at the tax office. They homestead one parcel and the others are not.

Reply by Alabama on 5/26/05 10:24am
Msg #40505

Re: My mistake...

I guess this was more of a mistake on the appraisers since he did it 3 years ago and included all of the property. But then again who can remember what they did specifically 3 years ago!

Reply by ERNA_CA on 5/26/05 12:37pm
Msg #40538

Re: My mistake...

Last time I got an appraisal on my house. It came in below what the builder was selling the new ones. I have lots of upgrades in my house and as well as having a covered patio and a landscaped back yard.. Appraisal came in at 20,000 below what my house was being sold from the builder with no upgrades, no covered patio and just dirt in the back yard. When inquiring why the appraisal was so low. Come to find out they had biased it on an old house that had sold close by. I called another appraiser and told him what had happened. He informed me some appraisers don't go beyond looking at propertied of same size sold in your area. He informed me that an appraiser can go by the new houses the builder is selling if it is the same house as yours, and upgrades therefor can be considered. But it all comes down to how much work dose an appraiser put into it. New appraisal came in what the builder was selling the hoses for plus upgrades. Lesson learned, you must interview an appraiser before hiring him or her.

Reply by maryinsocal on 5/26/05 1:43pm
Msg #40568

Re: My mistake...

I agree... ERNA_CA

Reply by maryinsocal on 5/26/05 1:44pm
Msg #40569

Re: My mistake...

I am in Real Estate Appraisal class right now in the RE degree program . I am taking my fianl exam tonight! I think appraisal is great to know but , I would never want to do it for a living...I am just taking it due to the fact it is included in the degree....