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Originally posted by Meka
I'm in the process of purchasing a new home. The asking prices is 585,000. We had it appraised last week and the appraiser came back with a value of 500,000. Which really causes some financing problems. I was surprised it came in at 500,000 because most the homes within half a mile are just under a million. Yesterday the seller called me and explained that the appraiser told her she could put it on the market for $650,000 and sale in in a week. He then told the seller her had wanted to purchase a home in this area for years but homes rarely come up for sale. Buy the time he left he had told the seller if I could not purchase it because of financing problems he would pay full price if she would carry a second for $65,000. Keep in mind my lender sent this guy out. Should I report this guy. Or just string him up by his neck?
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Call and write a letter to the State Department of Financial Institutions. (DFI) Make sure to correctly identify the appraiser. You can verify this through the State website.
CC a copy of the complaint to the appraiser
What he is doing is illegal - he has a vested interest in the property- this is something akin to blockbusting and manipulation of value which is a big time no no.
1 - extend the purchase and sale (if the seller is receptive) to give yourself some time. Make sure the Listing agent as well as your own are aware of the situation. YOU DO NOT NEED TO CHANGE THE VALUE OF THE SALE. REAPPRAISE AND GET THE VALUE YOU NEED WITH A NEW APPRAISER. IF YOU CAN MAKE THE CLOSING DATE THEN THE SELLER CANNOT BREAK THE AGREEMENT. A good appraiser can get this ripped out in 48 hours.
2- Get a new appraiser and reappraise. Save the old one for the DFI to review.
Good Luck.
rjp