Real Property Appraisals/Bad factutal appaisal


I purchased land and a mobile home in northwest Florida in June 2006 for $145,500.  That was the negotiated price after the appraisal came it at $165,900. Shortly after closing, I initiated a refinance to use some of my instant equity to consolidate debt (same appraiser). What I was told when the appraiser arrived to perform the second appraisal was the first appraisal mistakenly included 2 acres, I purchased only 1 acre and the mobile home. So, hoping for the best I authorized and paid for the second appraisal. Fortunately or unfortunately, this one resulted in a new value of $145,500 (Matched the mortgage value), a corrected mortgage filing, and zero instant equity.  Do I have any recourse to regain any of my lost equity or should I simply be happy the appraisal was at least the mortgage value so I didn't have to fork over the difference to the bank?


First of all, this appears to be 7-years ago, I can tell you with 100% certainty that values are different today. Assuming the first appraiser made an honest mistake, you never really had any "lost equity" The appraiser over appraised your property because he/she somehow used 2-acres for your site size. The question you have to answer is whether this was an honest mistake on the part of the appraiser, or was this negligence on the part of the appraiser?  

What you didn't say is whether you sustained any costs other than the extra appraisal fee. If you had to pay loan fees and points for a refinance, you may have sustained a loss. You will need to total up any costs that were expended in the refinance and decide if the total is significant.

Without knowing if you had to pay any other fees, it appears that you are just out the $300 to $450 for the 2nd appraisal.

If you did have significant costs for which you would like to be reimbursed, you can either file a Small Claims action against the appraiser, or seek out an attorney's opinion as to what you should do. I have no idea what the Statute of Limitations are in your State in that this issue happened 7-yrs. ago. Only an attorney could answer that question.

Based upon what you have presented, it seems like the 2nd appraisal only confirmed your purchase price.

John C. Carlson
CA Certified General Real Estate Appraiser
Victorville and Diamond Bar, CA

Real Property Appraisals

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John C. Carlson


Any questions regarding commercial and/or residential appraising, appraisals or real estate valuation such as: appraising as a profession, valuation techniques, comparable sales selection & analysis, the new HVCC and how it affects appraisers & Borrowers. Also, questions like: "Why did my appraisal come in low & what can I do about it?" I cannot answer questions about comparable data in areas in which I do not practice. I have expertise in most areas of So. California.


31-years both commercial and residential valuation experience. State of CA Certified General Real Estate Appraiser, licensed to appraise all property types. FHA Approved. Specialized expertise with historic, architectural & luxury residential property valuation. Experienced in industrial building and small commercial property valuation. Experienced Reviewer of appraisal reports and expertise with intensive forensic reviews to uncover fraudulent appraisal reports. Expert Litigation and Expert Witness experience.

Associate Member of the Appraisal Institute. Associate Member of the Certified Fraud Examiners.

Numerous posts to Blogs. Please "Google" "John C. Carlson Real Estate Appraisals" where a list of responses I have made will show up.

Numerous classes by the Appraisal Institute since 1978 in the practice areas in which I specialize

Past/Present Clients
First Republic Bank Wells Fargo Bank California Bank & Trust Preferred Bank Numerous Attorneys.

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