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What do I do if my home was appraised using the wrong comps?
I am trying to refinace my home. The process was going great only thing left was the appraisal. The appraisor came out to my home and looked around and took pictures. I unfortunately was not home, but my husband was. I had him asked the guy before he left what he thinks the home would appraise for. He told him an extremely low number and my husband questioned him about it. He then tells my husband that the homes in my area are being sold at that price, and that yes my home is larger, and has more upgrades but thats what they are being sold for on my street. Well, few days later the mortgage company calls and says my house is not worth enough to refinace and they were closing my file (this was left on my voicemail). When i got the message I was very angry because I live in area that is still being developed as we speak and is the new hot spot to move to, in my area. And not to mention homes are still being built and sold in my community. I asked for a copy of the appraisal and it was emailed to me. When I got it, the comps he used were on my street, but they were for a different division of homes. There are 5 of them in my area ranging from $160-300k. They were located in the Glen and I live in the Estates, The cost of the homes starting out differs of about $50,000. When I informed the mortgage company that my home should not have been appraised with those homes the processor just wanted to brush me off, saying she doesn't know anything about my area. Then she told me if I found comps for my home they would send my file to review. So I went to the model home and spoke with the guy who sold me my home 2yrs ago. He said it was crazy that the appraisor would use those homes as my comps just because we live on the same street. (by the way the street is long, and there is a sign that says Enclave were I live and a sign that says The Glen in front of those other homes). He gave me prices a high, median,and low comp for my home, houses located in the Enclave, one of which is the same exact house as mine. Which was sold for 59,000 more than what the appraisor was valuing my home at, based off the cheaper comps. They all were sold in the same time frame. So I called my mortgage company a few days later to see how and were the review was. She told me she emailed the information I sent to her to the appraisor who appraised my home and he told her that the homes he used were comps and the ones I got, two of them were larger than mine. (by 200 sq ft) Now take into consideration that my home is 180sq ft, 356 sq ft, and 366sq ft larger than the comps he used. She tells me that mine cant be used due to that.And also the homes I gave them didn't close within the last six months or less. And I immediately asked her to look at the appraisal the company they sent had gotten, because all of my comps were newer than 2 theirs. Then she tells me she is just the processor giving the information that was given to her. Something just isnt right with this. I asked to speak with her manager and is still waiting on him to call back. I called another appraisor and he looked up comps while I was on the phone and he said the same thing the sales man said, why would he use those homes in the glen, when plenty of homes have sold in the Enclave he can use as comps. And by going on comps alone he would appraise my home at 65,000 higher than the other appraisor. So now I am really unhappy. What should I do. How can I handle this. I don't think he wants to change his appraisal, because that means he made a mistake. I have Already given the mortgage company $350 that I cant get back and I don't have money just to be throwing away due to someones pride. Any comment would be appreciated.
10 hours ago - 3 days left to answer.
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Posted: Jan 14, 2009 at 11:09 AM
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You are on the right track to use comps within your particular subdivision. Contact the appraiser and provide him with comps that match your home. They should be homes of the same size, style and location. Be sure they are SOLD properties less than 6 months old. If you can find sold properties that have sold more recently than that you have a better case.
We are finding underwriters for the mortgage companies are reviewing appraisals and sometimes not accepting the values provided. Perhaps your course of providing the right comparables to the manager will do the trick.
It is hardly fair for you to have to pay for an appraisal if they didn't want to do the loan in the first place.
Good luck and let us know what happens!
Jan 15, 2009 at 11:40 AM
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I would go to a local mortgage lender. The one that you used obviously doesn't know about your area nor do they appear to care. If you can get in front of a lender, face-to-face, you will at least have someone you can talk to and you aren't just a number.
Either way, if you stay with this company or go to another lender, you are out $350. The company you gave $350 to is not going to change their minds. They are probably swamped with people wanting to do that and with the foreclosure market like it is, it is devaluing all of our homes (mine included). But, if they lived in the area, they would know what homes to use for comps. That is why you want to go local. They typically use an appraiser familiar with the area and who usually lives locally as well.
Most lenders don't ask for money up front until you are ready to close and that is what is required to close. Appraisers may charge you at the time of the appraisal because they aren't guaranteed money. It all depends on whether the house closes or not.
I hope that helps!
Jan 14, 2009 at 12:05 PM
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