If I noticed one fact in my home appraisal, will it make it void?
March 21st, 2010 | by admin |I recently had my house appraised and it came in well below what it should have. I know the housing market is in severe decline, but not where I live. My house appraised at 125K two years ago and has since been completely remodeled. It should have been around 145K but the apparaiser showed it at 117K. Now the bank is sticking to that and refusing to budge. I did find in the appraisal that one fact was incorrect. He shows the property in a flood zone with mandatory insurance and severe flood problems. This is not correct as per FEMA maps and locol government, and has never been correct.
My question is, do I now have grounds to out right refuse to accept this appraisal and demand a new one? Based on this wrong fact can I push to have this appraisal void? Thanks
It is the lender that accepts or refuses the appraisal.
He is supposed to check those maps and determine what flood plain you are in. If he has the wrong one I would think the bank could have him recheck the maps and do another report. You would not need an entirely new appraisal.
6 Responses to “If I noticed one fact in my home appraisal, will it make it void?”
By quizzard123 on Mar 21, 2010 | Reply
You can refuse to accept the appraisal, but since it’s the lender who needs to see the correct amount, it won’t have any impact on their decisions.
All you can do is ask them to allow another appraisal, but even if they allow it, I’d be very surprised if it goes up 28K to what you want.
References :
By OldJimmy on Mar 21, 2010 | Reply
If you paid for that appraisal, you have the right to request it be corrected with regard to the flood zone.
I’d also find out what his source is for his determination of "severe flood problems". If your area is not in a flood zone how could this be?
I don’t think any of this is going to add 28k to his valuation, though.
References :
By Landlord on Mar 21, 2010 | Reply
It is the lender that accepts or refuses the appraisal.
He is supposed to check those maps and determine what flood plain you are in. If he has the wrong one I would think the bank could have him recheck the maps and do another report. You would not need an entirely new appraisal.
References :
By Bill on Mar 21, 2010 | Reply
If your lender has a FEMA Standard Flood Hazard Determination Form in your file and the appraisal data is in conflict, the lender should request that the appraiser correct the flood status and review the value opinion in light of the change.
An appraiser has to consider all market elements that affect property value when selecting comparable sales. The market impact of location in a flood zone can be a difficult element to evaluate. Standard practice wherever possible is to use comparable sales that are similarly affected, an apples to apples comparison, so to speak.
If your property is not in a flood zone but all the comparable sales used in the appraisal are so located, and better comparable sales are available, it is entirely possible that the opinion of value is not credible.
References :
By Expert Realtor on Mar 21, 2010 | Reply
I hate to tell you this, but the housing market is NOT EVEN CLOSE to what it was two years ago.
Why do you ASSume the value of your home went UP when just about every home in America has went DOWN???????
You cannot "refuse" the appraisal b/c it’s not for you…it’s for the bank. The bank ordered it, not you.
The flood zone sometimes, but not all the time, has an impact on the property value. The appraiser does document if the property is in a flood zone, but banks NEVER go by the appraisal…they pull their own flood certification.
Simple errors do not "void" an appraisal.
It is very, very rare that FEMA maps are wrong, as they are periodically updated.
Don’t assume your property is worth more…show them proof…remodeling doesn’t equal increase in value…CURRENT MARKET TRENDS in your neighborhood, is what sets the value.
References :
By Crosstown Clay on Mar 21, 2010 | Reply
Sorry James, but as the borrower there is no such thing as refusing the appraisal because the appraisal client was probably the bank. Depending on the bank’s level of customer service, you can request that factual data, such as the flood zone, be changed if you can provide legitimate and credible documentation to refute it. You can check the flood zone yourself at http://www.fema.gov. I cannot tell if the flood zone had an affect on the value determination, but you may also request the bank order a 2nd appraisal – at your expense, of course.
References :
Appraiser 12+ years