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Updated about 5 years ago, 10/22/2019

User Stats

56
Posts
13
Votes
Matt Burr
Pro Member
  • Real Estate Investor
  • Chelsea, MI
13
Votes |
56
Posts

Bad Measurements on an appraisal

Matt Burr
Pro Member
  • Real Estate Investor
  • Chelsea, MI
Posted

When we purchased our personal home the appraisal listed the SF as 3028 and was apprised and compared as such. 3 years later we refinanced. Again the SF came in at 2975 and was compared and appraised as such. We just went to refinance again because our market has been rising quickly and we wanted to fund some deals. To our surprise our appraisal came in very low. To be specific the exact same as when we bought it 6 years ago in a market that has been on fire ever since. 

After comparing the 3 appraisals and doing my own measurements it is clear the first 2 appraisals that were done by the same company have a critical measurement error. This error caused the house to be drastically overvalued both times. The first time had it been done correctly it should have never even made the purchase price level to finance. 

Now I am about sick realizing my house likely just took almost a 30% loss because of the bad appraisals. Has anyone else had anything like this? Is there any recourse that can be taken since the error is very factual and not part of the "opinion of the appraiser at the time"?

Thanks for any help in advance.

  • Matt Burr
  • Loading replies...