Is there a law against false appraisals?

Question

When we bought our house 2 years ago,we were given an appraisal of $145,000.00,since we've added a new roof and finished an unfinished room(making an extra bedroom),while trying to refinance we find that the appraiser whom did the first appraisal was a friend of the bank pres.& house owner & "fudged" the numbers to help his friend sell his house,we recently had it appraised & it appraised @133,500.00, part.due to this we were unable to get financing. Is this a cause for a lawsuit?

Answer 1

An appraisal is simply an opinion. Each to his own when an opinion is offered. Although very difficult, if you can prove in a court of law an appraisal was purposely presented to you with the intent to deceive and fraudulently harm you, unlikely you have any recourse. Consult a lawyer.

FYI, 100% of the cost of a new roof would not be added on an appraisal and in many cases unless it is a recreation room, or an intricately designed room, you will add little to the appraised value.

Jewellery is a commodity which often receives widely varying appraisals, causing future surprises to the owner.

Answer 2

Except for the second appraisal, how do you know the first appraiser "fudged" the numbers? How do you know the second appraisal was quality? Do you have a copy of both appraisals? You are entitled to both under Federal law. Just ask your loan officer.

Under the Uniform Standards of Professional Appraisal Practice, the second appraiser was required to analyze your purchase in the appraisal report. What were the second appraiser's comments? Was the second appraiser's report USPAP compliant?

A purchase price is some indicator of value. Your home did not compete in the market alone, and you probably viewed similar homes in your price range before deciding on your current home. While there may be some pressure to "hit" the sale price, the appraiser needed to justify that with comparable sales.

Without a sale price, the opposing influence for an appraiser is his errors & omissions insurance, and possibly knowledge of the loan amount. Both may influence an appraiser's decision to value a property at the lower end of a value range.

Statistically, one of your appraisals is probably bad. For a residential appraisal, with adequate market data, values in the same market period should not differ by much more than 5%. You bought 2 years ago in what I assume was an increasing market. The difference in two years is over 10%.

Answer 3

Possibly. Just remember that appraisals for that purpose are for market value and there may have been other homes valued similarly that were generally close to your home (neighborhood). You would likely need to show that the price you paid for the home was not in line with prices in the neighborhood. One negative is that you bought the house likely not relying on someone else to value it for you.

A couple of questions to ask yourself:
--Did you look at other homes in the area to understand the prices when you bought?
--Has there been a price decline in homes in your area?

You should go back and look at your appraisal and see what it was compared to. You also should be able to go to your county's website to see what others in your neighborhood paid for their homes and compare transactions about the time you bought your house. Last, you can check zillow.com, although I wouldn't rely on these figures too much, as they are just a model and don't look at an actual home.

Answer 4

This doesn't seem to be an incredibly yawning gap.

The appraiser is out to protect the bank's interests, not yours. Its his job to determine the market value of the home, so the bank knows how much to reasonably lend you. Even if he did appraise it for what you wanted to buy it at... and it was less than justified... that's the bank's risk, not yours. You just paid too much for the house... and now somebody else doesn't want to give you additional money against it, 'cause they won't have recourse if you go banko.

Answer 5

except for the 2d appraisal, how did you comprehend the first appraiser "fudged" the numbers? How did you comprehend the 2d appraisal grew to change into astounding? Do you've a replica of both appraisals? you're entitled to both lower than Federal regulation. only ask your own loan officer. lower than the Uniform criteria of specialist Appraisal practice, the 2d appraiser grew to change into required to analyze your purchase contained in the appraisal list. What were the 2d appraiser's comments? grew to change into the 2d appraiser's list USPAP compliant? a purchase order value is a few indicator of value. your position did not compete contained in the marketplace on my own, and also you in all probability considered similar homes on your funds before determining on your present day living house. on an similar time as there should be some rigidity to "hit" the sale value, the appraiser mandatory to justify that with similar sales. without sale value, the opposing result for an appraiser is his blunders & omissions insurance, and in all probability expertise of the non-public loan quantity. both ought to result an appraiser's determination to value a sources on the decrease end of a cost determination. Statistically, one in each and every of of your appraisals is in all probability undesirable. For a residential appraisal, with sufficient marketplace files, values interior of an similar marketplace era ought to no longer determination by technique of so much better proper than 5%. you purchased 2 years contained in the previous in what i anticipate grew to change into an increasing marketplace. the version in 2 years is over 10%.

Answer 6

Yes! It was a misrepresentation by the appraiser and the seller, if he knew about it. You should talk to a lawyer about this.