Bad Appraisal

[jerzey]

The comps were 4 miles out. With a fullblown appraisal, will my attorney then discount the appraisal at all to account for a quick sale, or is it not taken into consideration at all? Thanks

4 miles
he needs to justify that on the report and he may of
Read it very close

[Flamingo]

Southernbelle, the only problem with this is, none of the houses for sale right now are ranchers and the appraiser says he can't compare other styles to mine, he has to compare ranchers to ranchers. I'm fine with that, however if he's going to compare my rancher to a rancher in a neighborhood where houses have sold on average for 25% more than the same house in my neighborhood, then that should be accounted for. He only accounted for a 10% difference in price from one neighborhood to another when in reality, after looking at prices of houses that have sold in both, the difference is on average 25%. Again, it just looks like I'm going to have to pay for another appraisal and hope it comes in lower. Another question I thought of this morning, is it inappropriate to discuss all this with an appraiser ahead of time, or is it normal. Should I ask the 2nd appraiser if he will take the 25% deduction into account if he has to use one of those houses in the comp, or is this not appropriate. thanks

The appraiser has to show on the appraisal how he arrived at the figure. He has to use certain comps in the area if there are no comps in the same development/close area as the house being appraised. An appraiser can get in big time trouble if he comes in too low or too high on an appraisal and he/she has to be careful. People looking to refinance are looking for high end figures and people looking to file BK are looking for low end figures. We had to obtain an appraisal for our property also when we filed Chapter 13 because the former appraisal was done 10 years prior. We were not happy with the results either and had to go with what was provided us and we had no really close comps as we had added on a rec room and extra bedroom to our ranch. You do not find too many 5 bedroom ranches with a rec room around especially in our area.

I would advice the appraiser that you are looking for a low end appraisal on your house because the appraisal is to value equity in your house for BK purposes, just as I would advice the appraiser if I wanted to refinance and look for a high end appraisal. I would not ask the appraiser to commit fraud to benefit you as he/she could lose their job. You may not be happy with any result you get and you may not get what you think the house is worth on any appraisal if you have 3 or more done.

[slappy]

Thanks to all that have replied, it is appreciated. Again, thanks.