Updated almost 4 years ago on . Most recent reply
Appraisal Condition Requirements
BP,
I need some information regarding what the actual requirements are for the condition of a home so that an appraiser can complete an appraisal. I purchased a house for cash in OKC last month that needed a little rehab. Our intention was to immediately start the cash out refi process once we closed on the cash purchase. There was a shower that the previous owner had DIY'd that we thought we could salvage. Eventually after talking with a couple contractors we realized that we were better off removing the shower and starting from scratch. The contractor started the work and progressed fairly quickly. The appraiser ($675) happened to stop by the house in the middle of tile going up on the walls. He contacted me afterwards and said he would need to go back once the shower was complete, and the visit would cost another $175. I said ok, and told my contractor to let me know when he would be finished so that I could reschedule the visit. Long story short, the appraiser showed up again on the day my contractor was finishing installing the fixtures and had a small piece of grout to complete. Yes, I know the contractor shouldn't have told me he was going to be finished but that's a separate issue. The appraiser once again said he would need to come back to ensure the grout was complete, and the fixtures were installed essentially another $175 visit. I asked him to appraise it as is, and he insisted he could not. He would not accept photos of the completed work either. My lender said I had no recourse other than to pay the fees.
My question is, was he in the right that he could not complete the appraisal in that condition? Or was he just looking for another reason to charge me a trip fee?
Secondly, we just bought another house that is in need of flooring, paint, and some other minor repairs. Should I not even schedule an appraisal until the work is complete? I am not concerned about the value coming in low, because the house was bought wholesale and will come in at the LTV we are looking for.
Thanks in advance.
Josh
Most Popular Reply
There is no reason the appraiser couldn't accept a photo, especially if the contractor was there finishing the work. This seems like a blatant money grab. The problem is fighting the appraiser could result in retaliation and low appraisal value. I would be nice until the appraisal is complete. Then contact the appraiser and ask for $175 back. Ask them what organization they hold accreditation or licensing through and get their license number. Tell them if they are unwilling to be reasonable, you will go through the process of filing a complaint.
There is also the risk that you get this appraiser in the future, but if you have an active complaint filed against them, I would tell the lender it is a conflict of interest.