Appraisals????

[rhh]

What is the name of your state? California

I cotracted an appraisal comapny, paid $350 out of pocket, to do an evaulation for my home for an understanding of it's market value. Price comes back at $535. Which based on the appraisal made sense. One month later the relocation company, hoe being sold to my company, asks the same appraisal company to do an appraisal; comes back at $430K. Same company, two different appraisers. Note: Appriasal number #2 signed the first appraisal as well as the one he completed. When I confronted the appraier (#2) he could not substantiate his addition, subtraction or bottom line. After some discussion it was clear to me that he was not from the market; nor had an understaning of the neighborhoods. I asked for a refund of the appraisal #1 and he declined. Do I have a case? Small claims of $350? Or????

Thanks in advance...

 

[Cedrus]

There are about 3, or more, methods of appraisal: Drive by, replacement cost, market comparisons, and maybe highest and best use.

See which methods were used and ask around.

 

[JETX]

Do I have a case?

Based on your post, unlikely.
Appraisals are just that.... an ESTIMATE of the property value. It is not an exact science... nor an absolute value.

However, you can certainly contact the appraisal company in WRITING... including a copy of both estimates and ask them to explain or refund.

 

[tranquility]

I have to disagree with Jetx in effect. While appraisals are estimates, two appraisals within a month should not differ by so much. Without a detailed explanation of the methodology and the data used, as requested by Cedrus, we cannot say if one of the apparisers failed to meet his duty. If the appraisals used the same valuation method, I would say one is wrong enough to demand some sort of accomodation from the appraisal company.

 

[JETX]

While appraisals are estimates, two appraisals within a month should not differ by so much.

Should not?? I agree, they shouldn't. However, this is NOT the 'should advice' forum. The fact that the two appraisals are different is not LEGALLY actionable.

The ONLY recourse the OP has is as I noted.

 

[tranquility]

While there could be an explanation for why so great a difference, I would tend to think there is not. If both used the same methodology, there seems to be a breach of the duty to come to such varying results. We cannot determine if the breach is contractual or lies in negligence so cannot determine the damages.

Again, there may not be a breach, but the facts we know are highly suggestive there may be one. If so, it is actionable. I would go to the appraisers first as you, and I (I would say one is wrong enough to demand some sort of accomodation from the appraisal company.) suggested. If the appraisers don't come up with a reasonable explanation or accomidation, it is LEGALLY actionable in contract or tort.