Defective appraisal ??

[Stacey Conte]

Has anyone ever received a defective appraisal back?

Notes below from the lender regarding the appraisal.

“PNMAC has determined that the appraisal is defective. The report provided does not provide a rent analysis that confirms the subject’s estimated market rent. Comparable sales 1-2-3 are generally similar to the subject and located nearby, however, each has been given the same minimally supported +$50,000 Condition adjustment. We have confirmed that each of the first three sales has received some degree of updating. Any Condition adjustment of this size needs to be well supported and specific to each of the sales. The across the grid uniform adjustment (averaging 24% of the sales prices) significantly reduces the reliability of the analysis.”

Lender was going to send another appraiser to the property but seller did not want to extend the contract again (we had a few other delays already) so I lost the property. My realtor has never seen an appraisal deemed defective like this so I’m looking for feedback because I’m curious to learn more. Thanks!

[Aaron K.]

@Stacey Conte neither have I, and that sounds like a flat out terrible appraiser, a $50k adjustment is huge and making it without evidence is even worse.  It would be one thing if they had $5k for granite, $5k for kitchen cabinets etc.  but just doing $50k for condition is lazy, usually even freeways and major powerlines don't warrant a $50k adjustment.