The stories are true about the screwed up appraisals. I live in an Intown neighborhood and have an historical home that has gone up significantly each year with a slight brief decline during the recession.
The last appraisal before some of the most current renovations was 10 years ago for $325k and every other appraisal has been within range before that time. I am not in a very hot area and homes sell within days. My home was on the tour of homes and considered to be one of the nicest. I asked quicken to make sure and request an appraiser familiar with Intown neighborhoods.
The least expensive house on the street sold for $385k 6 months ago. The home next door which is the exact same house with a smaller lot and cheap renovations Closed for $439k the very week quicken sent the appraiser. Several other home on the street had sold during the same month that were smaller and less appealing for low $410k to $500s. I told the broker that at a minimal my house would get $390-$430 which would far exceed what I needed to make it worthwhile.
The appraiser appraised the house for $270k and used comps that are not appropriately in the same area. I provided a long list of comps to help him understand the market and neighborhoods. He was not interested in my comps. I provided an extensive list up renovations and updates as well as the amenities that are also driving up pricing.
He had no interest in any of that information. Quicken wanted to have me pay PMI which I haven’t paid in over 19 years. I have an offer on the house for higher than the $439k my neighbors received. By the way they received their offer the first day the home was on the market.
I understand values can vary and there are different interpretations but it was obvious that the appraisal was at least $100k lower than a low end value in the area. Quicken acted as if this was all my wishful thinking and said that they must respect the opinion of the appraiser. I would have been okay with a conservative estimate because I was just looking to refinance. However, the estimate was so grossly out of range that It should have required reconsideration.
They were still expecting me to refinance and add PMI and couldn’t understand why I was furious. I will not revisit this with them any longer because it is too much energy and time wasted. If I want to sell I know what range the house will sell for. If I do refinance, I will use a broker and appraiser who is educated on the area and the values.
Not all appraisals that are low or high are wrong. To the appraisers that are getting offended as if it is an attack on their industry, maybe you are the ones where this story hits home. In reality there are some appraisals that are incorrect and the person hired should have some understanding of that particular market.
If not, then at least have the curiosity to find out before putting a half *** value on something that is so important. No to quicken loans.
Product or Service Mentioned: Quicken Loans Customer Care.
Reason of review: Pricing issue.
Monetary Loss: $100000.
Preferred solution: Leave me alone and for future consumers request appraisers Appropriate for the market . That is a very reasonable request. Why would you have anyone place a value on anything that doesn’t understand what they are trying to value. .