The appraisal

C - Bad Home Appraisal: How can you resolve a bad home appraisal?

Appraiser Mistakes 

Appraisers face potential lawsuits and disciplinary actions from their state regulatory agencies for incompetent appraisals. Actual mistakes and violations that have caused inaccurate appraisals include such things as:

•    Using a comparable property that was significantly dissimilar to the subject

•    Using comparison houses that were in inferior condition and value

•    Inaccurately citing the location of the subject neighborhood

•    Incorrect basement description, property design or square footage     

•    Inaccurate room listings or number of valid bedrooms

•    Excluding the condition rating on the interior of the property

•    Incorrectly citing ages or quality of construction of comparable properties

•    Failing to identify prevailing market conditions of the neighborhood

•    Not realizing that the subject property was located on a similar sized lots

•    Failure to reflect that there were multiple offers, justifiably driving up the buyer’s price

•    Failing to factor in external conditions (close to apartments, traffic, high tension lines, etc.)

•    Failing to note that a comparison property didn’t have a garage, basement, or fireplace, etc.

•    Using courthouse records containing errors like inaccurate square footage on subject property

•    Failing to accurately reflect the prior sale date of comparison properties

•    Incorrectly citing room description and heat source of comparable properties

•    Improperly including a garage that was within a basement area

•    Using excessive costs for a similarly finished basement in a comparison property

If you felt your appraisal contained unfavorable errors, these examples are legitimate reasons for having a second opinion.

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