Posted on: 22nd Mar, 2009 02:38 pm
i purchased a condo in dc in 2005 from an individual who had a realtor. they listed it as having 900 square feet. the appraisal that my 2005 lendor obtained for me shows 900 square feet.
i refinanced a year later in 2006. the appraisal the new lendor obtained for me shows 836 square feet.
i attempted to refinance in early 2009 with the same lendor who did the 2006 refinance. this time the appraisal that the lendor obtained (from a different appraisal) showed 714 square feet. the appraiser came out to do a second measurement at my request and confirmed the 714 square feet number.
i'm trying to determine if i have a cause of action against anyone. i think i need to get historical appraisals as of the dates of the 2005 and 2006 appraisals, but assuming that the square feet is inflated in both appraisals, can i sue the appraisers or would i have to sue the lenders since i did not hire the appraisers myself (no privity of contract). what about the original seller and her realtor who listed the condo as 900 square feet? might i have a cause of action against them?
thanks in advance for any advice you can provide.
i refinanced a year later in 2006. the appraisal the new lendor obtained for me shows 836 square feet.
i attempted to refinance in early 2009 with the same lendor who did the 2006 refinance. this time the appraisal that the lendor obtained (from a different appraisal) showed 714 square feet. the appraiser came out to do a second measurement at my request and confirmed the 714 square feet number.
i'm trying to determine if i have a cause of action against anyone. i think i need to get historical appraisals as of the dates of the 2005 and 2006 appraisals, but assuming that the square feet is inflated in both appraisals, can i sue the appraisers or would i have to sue the lenders since i did not hire the appraisers myself (no privity of contract). what about the original seller and her realtor who listed the condo as 900 square feet? might i have a cause of action against them?
thanks in advance for any advice you can provide.
Hi guest,
I guess the earlier appraisers did not appraise the property correctly and thus the square feet of the property has been recorded wrongly. I would suggest you to contact an appraiser and appraise the property once again. This will help you to know the exact square feet of the property. Once you know the exact square feet, then you would be able to sue the earlier appraisers and the original seller and realtor.
Thanks
I guess the earlier appraisers did not appraise the property correctly and thus the square feet of the property has been recorded wrongly. I would suggest you to contact an appraiser and appraise the property once again. This will help you to know the exact square feet of the property. Once you know the exact square feet, then you would be able to sue the earlier appraisers and the original seller and realtor.
Thanks
james, i can't agree with you. it would seem that there have been way too many appraisal reports done already - none of which has provided precisely the answer that our poster needs.
unfortunately, i don't have much of an answer for your quandary, dc.
unfortunately, i don't have much of an answer for your quandary, dc.
Hello Washington, DC.
I will try to answer your question or at the very least give you a little insight.
The first thing you will need to do is determine which one has the correct measurement or as close to correct as possible. It is common for multiple appraisers to measure properties and be slightly different but they should be relatively close especially on such a small space. For a condo, since ownership is limited to the interior of the unit only, the square footage should be based in interior dimensions. I have seen other appraisers use the exterior dimensions which is common on single family homes, but in my opinion, this is an inappropriate method for measuring condos. If I were you, I would view the sketches from all three appraisals and take a few measurements myself to see which one appears most accurate.
If you determine that the smallest measurement is the most accurate, then you have some serious homework to do. You will need to determine if there is a significant value difference as a result of the difference in SF. This is where the assistance of another appraiser will help. You cannot automatically compare this recent appraisal to the value in previous appraisals because of time and the fluctuations in the market. There will have to be a significant value difference at a frozen point in time for the difference in SF with all other things being equal. With that figure you can determine if it is really worth your time and effort to pursue legal action.
Now to really answer your question. I am glad to see that you understand privity of contract because most people do not. Within the signed certifications of the appraisal report, it is disclosed that other parties than the client may rely on the appraisal report. This means that even though the lender was named as the client, you may still have grounds for a suit if your financial decision was based on the appraisal report. HOWEVER, you will have to PROVE that the appraisal was purposely misleading whether by fraud or incompetence. Anything other than that, and it is one opinion against another.
I will try to answer your question or at the very least give you a little insight.
The first thing you will need to do is determine which one has the correct measurement or as close to correct as possible. It is common for multiple appraisers to measure properties and be slightly different but they should be relatively close especially on such a small space. For a condo, since ownership is limited to the interior of the unit only, the square footage should be based in interior dimensions. I have seen other appraisers use the exterior dimensions which is common on single family homes, but in my opinion, this is an inappropriate method for measuring condos. If I were you, I would view the sketches from all three appraisals and take a few measurements myself to see which one appears most accurate.
If you determine that the smallest measurement is the most accurate, then you have some serious homework to do. You will need to determine if there is a significant value difference as a result of the difference in SF. This is where the assistance of another appraiser will help. You cannot automatically compare this recent appraisal to the value in previous appraisals because of time and the fluctuations in the market. There will have to be a significant value difference at a frozen point in time for the difference in SF with all other things being equal. With that figure you can determine if it is really worth your time and effort to pursue legal action.
Now to really answer your question. I am glad to see that you understand privity of contract because most people do not. Within the signed certifications of the appraisal report, it is disclosed that other parties than the client may rely on the appraisal report. This means that even though the lender was named as the client, you may still have grounds for a suit if your financial decision was based on the appraisal report. HOWEVER, you will have to PROVE that the appraisal was purposely misleading whether by fraud or incompetence. Anything other than that, and it is one opinion against another.
