Discrepancy in Home Appraisal Value
by Betty from Waterloo, Iowa USA
Ask Kate about Discrepancy in Home Appraisal Value: Hi Kate, We were refused the initial amount requested for refinancing due to approximately a $10,000 discrepancy between what we said our property was worth and what it was appraised at. After thorough review of the appraisal, we noted four more major discrepancies.
- The appraiser listed our $6000 newly installed hardwood floor as a laminate floor.
- Although we have newly installed granite counter tops and travertine flooring in 2 of our bathrooms, and newly installed marble wall tiles and spa tub, double sinks, etc., in a third bath, the marble and granite were not mentioned, even as amenities.
- The appraiser listed the downspouts and gutters as average to good, when-in-fact they are seamless ones, newly installed just months prior to the appraisal.
- We have a new furnace, 2 new water heaters (we previously only had one), new roof, new siding and new professional landscaping all of which were not even mentioned on the appraisal.
What recourse, if any, do we have?
Kate Answers: Discrepancy in Appraisal for Mortgage Refinancing
I saw something similar once. It was my first year in mortgage lending.
The home being refinanced belonged to a Realtor.
It was a large new home, also full of amenities, with a breath-taking water view.
When I reported back to them after the appraisal was turned in, the real estate agent and her husband were horrified over the low value of their gorgeous 2-story home.
After much anguish (on my part and theirs), it was discovered that old data from a previous appraisal had accidentally replaced the floor plan and amenities when the appraiser compiled his data. A new appraisal confirmed the homeowners' claim that their home was indeed worth significantly more.
How to Dispute Appraisal for Mortgage Refinancing
So what should you do? If you want action, you have to take action.
But keep in mind, since everyone is growing numb to falling real estate values of the last few years (today being 2012), you might feel no one from the mortgage company is listening to your dispute.
If so, you have to speak more boldly. And begin following up all verbal communication in writing.
Hopefully, the mortgage company will allow you to contact the appraiser directly to discuss the property report. Again, follow up with written communication.
Sadly, there is no silver bullet to solve appraisal disputes. And no guarantees that adding in the amenities will change the appraiser's mind. But I urge you to not give up easily.
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