Appraiser paid for 24 turn around time - now it's 10 days later

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Appraiser paid for 24 turn around time - now it's 10 days later

Sarah Pratt
Haslet, TX · Member since 2016 · 26 posts · 2 votes

You guys, I'm about to go crazy. I'm selling a SFH (mobile home) in the Fort Worth, Texas metroplex. We have an agent, got an offer quickly, and everything was going fine until the appraisal time. When the buyer's lender sent out the request for an appraisal, two appraisers passed over it before a 3rd one finally picked up the job. Then he said if the buyer's wanted to close on time on our house, he would do a 24 hour turn around time on writing the report but it would cost $700. The buyers said ok and he got paid his money. It is now 10 days later and the buyer's lender STILL does not have the report! We were supposed to close on the 14th. Now, we have no end date in sight.

How is it even legal or ethical to get paid up front for an appraisal and then not do your job??   It's not even my money but I hope the buyer's have some recourse on this because that's just not right!  I am so upset because we NEED to close and this appraiser is holding up the whole show and it seems like there is nothing anyone can do to make him do his job.  

Anyone have any ideas or thoughts on what on earth we can do to move this along?  The buyer's are so upset because they want our house and were ready to move in last week, we are super upset and have already moved out...everyone is upset!  

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Jeffrey H.
Houston, TX · Member since 2015 · 512 posts · 338 votes
10y

Make this your real estate agent's problem.  Have them call the appraiser every day until they get it done.  It's their job to do things like this so that you don't have to worry about it.  Also on the buyer's side there should also be pressure applied since you both wanted this done quickly and paid a premium for it, and he / she is not delivering.

Assuming this appraiser is licensed (they had better be!) then you can file a complaint against them here: https://www.talcb.texas.gov/ if they continue to drag their feet.  I assume you have some sort of documentation to support that they had offered 24 hour turnaround.

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  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    10y

    @Sarah Pratt Unfortunately, this isn't uncommon when using an appraiser for a first time. Appraiser's main client are big banks, who give them 30+ days to get these done. When someone calls looking for a fast turn-around time, they usually get told 'no thanks.' 

    And I have never had to pay $700 for an appraisal in DFW - even with a rush fee, they're never more than $500-$550. Paying up front is not uncommon, but I prefer to pay once the report is done (but before I've seen it). 

    At this point, I think you might tell the buyer to get a new appraisal scheduled or you'll be forced to move on. If the appraiser is this bad about running his business, I can only imagine the quality of the report will make getting an accurate value a crapshoot. 

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  • Sarah Pratt
    OP
    Haslet, TX · Member since 2016 · 26 posts · 2 votes
    10y

    Thanks Jason.  My understanding is that the buyer's current lender cannot just ask for a new appraiser...that they would have to completely change lenders and start all over.  Is this true?  

    Also, I don't think the lender even specifically asked for a fast turnaround.  I think this appraiser offered it first and has basically taken the money and given everyone the middle finger.  

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  • Jeffrey H.
    Houston, TX · Member since 2015 · 512 posts · 338 votes
    10y

    Make this your real estate agent's problem.  Have them call the appraiser every day until they get it done.  It's their job to do things like this so that you don't have to worry about it.  Also on the buyer's side there should also be pressure applied since you both wanted this done quickly and paid a premium for it, and he / she is not delivering.

    Assuming this appraiser is licensed (they had better be!) then you can file a complaint against them here: https://www.talcb.texas.gov/ if they continue to drag their feet.  I assume you have some sort of documentation to support that they had offered 24 hour turnaround.

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  • Sarah Pratt
    OP
    Haslet, TX · Member since 2016 · 26 posts · 2 votes
    10y

    Believe me, my agent, the buyer's agent, the lender...they are all over this person!  Putting as much pressure on as possible and my agent has called every single day and has been nice but firm about how much we need to get this done.  Obviously we don't want to completely piss off an appraiser that could just screw our value out of spite.  But yeah, that's part of what makes this whole thing simply unbelievable....that he has been contacted again and again and still nothing!  

    Thanks for the link to file complaints.  I plan to do so.  

    I wish I could just sit back and let this be my agent's problem but I don't have enough patience for that.  haha  She is excellent though.  

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  • Julie MarquezPro Member
    Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
    10y

    @Sarah Pratt I'm so sorry, I feel your pain. I had a terrible appraiser who failed to see the carbon monoxide tester in the home, failed to ask the home owner (who was right there) about it, and then I was charged for the second visit. And of course this all added weeks to the closing. I had to get a lawyer involved, who called the bank to give them a friendly reminder if this deal did close in time, that I would lose the property and we would seek recourse. That got them to move a little faster.

    The title company then had to work quickly to get all the paperwork ready (less than 24 hours), and because of their speediness, I was able to close. I made sure to give the title agent a gift after closing, because without their push, it would not have happened in time. File complaints, and also have good people on your side to help with the other parts. Good luck!

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    10y

    @Sarah Pratt,

    I like Julie's approach.

    Perhaps if the appraiser were to suddenly find himself faced with a process server or someone in a blue uniform wearing body armor (fraud is a crime, usually a felony) he might move double pronto.

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  • Sarah Pratt
    OP
    Haslet, TX · Member since 2016 · 26 posts · 2 votes
    10y

    Thanks Julie!  Everyone is ready on BOTH sides and as soon as we get an appraisal report, we can close (barring the 3 day legally required waiting period for the buyers).  Maybe I can find an attorney that will help...

    I appreciate the sympathy.  It's maddening to wait.  

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  • Sarah Pratt
    OP
    Haslet, TX · Member since 2016 · 26 posts · 2 votes
    10y

    David, haha...I DO have cops in the family....

    I just keep thinking surely this appraiser values his livelihood and will get this done TODAY!  Doesn't he want to get this done and off of his list of things to do?  It just boggles the mind.  

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    10y

    @Sarah Pratt,

    You HAVE been defrauded. I'd say, have a warrant issued for his arrest and offer this settlement: he gets the appraisal done within 4 clock hours AND repays the $700 to you in cash. In return, you drop the charges. Otherwise, let the DA's office have their way with him and he can lose his accreditation and his job due to the criminal charges.

    Time to play hard-ball ... (well past, actually)

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  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    10y

    @Sarah Pratt

    I am assuming that the buyer is using FHA financing since the property is a mobile home ? Since FHA is one of the few avenues to sell a mobile home to a retail buyer, I would reconsider the hardball route with the appraiser in an effort to get the deal closed.

    With the changes following the mortgage crisis, a firewall of sorts was created between lenders and appraisers. They often will not communicate with agents or buyers/sellers beyond how to get access. Please keep in mind that an FHA appraisal stays with the property for 6 months. So playing hardball and threatening fraud could lead to a low appraisal which is much worse than waiting a few extra days. I am not saying it would be right for the appraiser to do so, but not everyone does the right thing

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  • Todd Plambeck
    Agent/Investor · Murphy, TX · Member since 2013 · 542 posts · 304 votes
    10y

    Don't waste your time with all the crazy call the cops talk.  The only people that can or will apply any meaningful force is TREC/TALCB.  Call them, file a complaint, and let the appraiser you are doing so.

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  • Sarah Pratt
    OP
    Haslet, TX · Member since 2016 · 26 posts · 2 votes
    10y

    @Greg H.  You have hit the nail on the head.  This is exactly everything my agent has told me about the consequences of any sort of threat against the appraiser.  Therefore, I feel stuck.  The lack of communication abilities from all parties due to the firewall (good term!) plus this appraisers lack of speediness on the issue...I just feel like there is no recourse for us or the poor buyers!  Because honestly, is there any legal contract anywhere between the appraiser and a lender that says you HAVE to have the report done by X date?  Not to my knowledge....

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  • Sarah Pratt
    OP
    Haslet, TX · Member since 2016 · 26 posts · 2 votes
    10y

    @Todd Plambeck Yeah I know it's not really an issue for the cops or anyone beyond an attorney or the appraisal board.  I just worry that if we pressure the appraiser too much he will just write us a terrible value and say screw you.  

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    10y

    @Sarah Pratt,

    In that case, I would re-instate the charges and, if found guilty, ask at sentencing that all penalties be trebled as punishment for the retaliation.

    ... or, knuckle under and allow yourself and everyone after you to be bullied with impunity.

    The choice is yours.

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  • Sarah Pratt
    OP
    Haslet, TX · Member since 2016 · 26 posts · 2 votes
    10y

    Today's update is that my realtor was able to talk to the appraiser's secretary yesterday and she said the report would be in this morning.  They have said that 3 times already.  It is 10 am Central Time........

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  • Sarah Pratt
    OP
    Haslet, TX · Member since 2016 · 26 posts · 2 votes
    10y

    11:35 am and still no appraisal and his secretary said he's not in yet, as of an hour ago.  He won't call my agent back, the buyer's lender is doing who know what....

    I don't know what to do.  And apparently if we refuse to sign the extension of the contract with the buyer's, we aren't entitled to their earnest money?  Why not?!  They failed to close this loan.  This is absurd!  

    I want them to terminate their lender and start all over with a new one so that a new appraiser will have to come out because I have zero faith that this current appraiser is EVER going to turn in an appraisal.  What do you guys think of that plan?

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    10y

    @Sarah Pratt,

    Sounds like a plan.

    0Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    10y

    @Sarah Pratt

    I know I am in the minority here but you are trying to sell a mobile home and with an end buyer FHA is about your only option. If you terminate with this lender the following could happen:

    - Longer delay in getting the FHA case number transferred

    - buyer can still be charged for the appraisal and now will have the additional costs of another appraisal

    - The outcome of the appraisal could still be attached to the property for 180 days

    All of this could cause a much bigger mess and further delay a closing and you will provide lose the buyer you have. I would suggest giving a 2 week extension and letting the lender know that this is all you can do and put it on them to get the deal done. 

    For those of us who have done this for a long time, sometimes you just have to bite the bullet and take it and this is one of those situations. A mobile home prices to sell to a retail buyer is a difficult sale.  

    I am surprised that some veterans in this business are suggesting suing or calling the police. There is NO way any of that would fly !  There is no contract with you and the appraiser. The lender ordered the appraisal and you as a seller have absolutely no standing. You could absolutely terminate but I say with experience, selling a mobile home to a retail buyer is a difficult task and I would suggest patience with your ready willing and able buyer

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  • Sarah Pratt
    OP
    Haslet, TX · Member since 2016 · 26 posts · 2 votes
    10y

    Greg H. you are so right.  While it's tempting to scream and cry and throw a fit, ultimately I just have to wait.  There is not a darn thing I can do and we will just sign an extension with the buyers.  

    I DO wonder why the appraisal is taking so long though.  Especially when he told the buyers he would have it back in 24 hours.  I mean, why even say that?  And it's not right to charge $700 for it.  I feel sorry for the buyers.  

    Thanks for your wisdom.  Today we are all just taking a break from trying to contact anyone.  Since today the contract with the buyers terminates at midnight (until we sign an extension of course), maybe that will push the appraiser to get it done (since he was informed of that fact).  Or not.  Oh well.  

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    10y

    @Greg H.,

    The appraiser took money for a service which he failed to provide. She me ANY jurisdiction where that is not a crime.

    @Sarah Pratt reported that he was paid $700. In most states, that constitutes grand theft, a felony.

    Apparently, he does this as a matter of practice. So, he's probably a repeat offender.

    GET THIS CRIMINAL OFF THE STREETS!

    GET LAW ENFORCEMENT AFTER HIS BUTT AND LOCK HIM UP!

    The way the job market is right now there are probably a thousand or more waiting to take his place. Some of them are even honest!

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  • Jeff B.
    Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y
    Originally posted by @Sarah Pratt:

    Thanks Jason.  My understanding is that the buyer's current lender cannot just ask for a new appraiser...that they would have to completely change lenders and start all over.  Is this true?  

     Likely to be sensitive to the State, but in Calif it is not true.  I objected to a low appraisal and offered to pay for another performed by an appraiser local to the subject property (the first was very remote).  Got another appraisal and the value was ~$75k more so the $500 fee was money well spent!

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  • Sarah Pratt
    OP
    Haslet, TX · Member since 2016 · 26 posts · 2 votes
    10y

    Appraisal came in!!!  Don't know what the value is but he said he got close to asking price and we are waiting to hear from buyers and no matter what, we are gonna make it work!  So happy!  

    Apparently it was just really hard to do and the appraiser isn't good at communicating.  

    Thanks so much for talking me off a ledge, everyone!

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