Agent

Bad appraisal costs bank big bucks

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

DEAR BOB: Thank you for your recent article about home appraisals. We had a similar situation. When my wife and I bought our home, we applied for a mortgage at the bank where we've done business for many years, and where my company has done business as well. All went well until the bank's appraiser said our new home was worth about $23,000 less than the price we offered and the seller accepted. Phone calls to the appraiser and the bank loan officer did no good. So we applied for a mortgage with my wife's credit union (where she has a small account). They sent out their appraiser who confirmed we got a bargain purchase price. Our new mortgage approval, including the appraisal, took only three days for what turned out to be a better mortgage. As a result, I pulled our company multimillion-dollar accounts from that "big bad bank" which lost our business due to a bad appraisal. You are so right that appraisal is an art, not a science. How can two experienced, licensed appraisers be $23,000...