Can you sue a appraiser?

I am contemplating suing an appraiser who wrongfully (negligently) said the home I was buying was not in a flood zone, they also came up with the exact price I had offered for the house as their appraisal value (what a coincidence) the bank also failed to disclose the flood zone until I refi-ed several months ago, but I have been told you can't sue the bank for failure to disclose the flood zone, but can I sue the appraiser since he was to act independently of the bank and realtor?

Dwakins,
The STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS attached to the report (if a standard URAR form was used) contains the following:

“The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency(or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination.”

I wanted to make you aware of this if you are planning a lawsuit. This disclosure will make your job much more difficult. To win the lawsuit, you will have to prove that the appraiser was aware of the flood area and intentionally disregarded it. It should also be known that many appraiser software packages have a built in flood mapping system which pulls this data and automatically populates the forms with the information. I have personally found this information incorrect on some occasions by comparing the information to a survey. However, if the appraiser relied on this information and a survey was not available, they may be in the clear if the flood area was never brought to their attention.

Just something to think about.

I would like to add one other comment.

Although it appears from my previous post that I am defending the appraiser in this scenario, I would like to go on record as saying that I do not agree that it is acceptable that this information was overlooked. Having said that, I wanted you to have this information before you spend a great deal of money towards a lawsuit.

You may also want to consider speaking to another appraiser and having them complete a review on the appraisal and see how much, if any, it affects the value of the property. This would be good information to know before moving forward.

I have had 3 appraisal on my home since 2005. I have the blue print for my house. I was the contractor and builder. I showed the blue print to all 3 appraiser. I told them there was 1550 sq. ft. of basement (foundation) 1550 sq. ft. on the first floor and 550 sq.ft. on the second floor. That is a total of 2100 sq. ft. above grade. I added a 600 sq.ft solarium that has its own heat pump for heat and air condition to the back of the house that makes 2700 sq. ft. The first appraiser came in at 2580 sq. ft. and had 7 Rooms 2.5 baths. The second appraiser came in with 2573 sq.ft. had 6 rooms 2.5 baths. The third appraiser came up with 1952 sq. ft. 6 rooms 2.5 baths. The second appraiser was off 127 sq. ft... The third appraiser was off by 758 sq. ft. at the price he had $71.30 sq. ft. he cost me $54,045 on my appraisal. The reason I am using the second and third appraisals was just in the month of September. I had two appraisals because I wrote you and told you about the first one and you told me to get another appraisal. The bank sent this guy and I asked if he was a certified appraiser and he said no but he was license by the state of Ohio. When I asked for a copy of the appraisal from the bank he had put his State License number on the State line and he used the same number on the certified line. I want this guy to pay for the wrong he has done to me. The second appraiser said my house was worth $229,000 the third appraiser said it was worth $210,000. The 2005 appraiser said it was worth $308,000. I am trying to get the bank to through out the second appraiser. He has coast me 80% of the value of the money I needed from the bank. I need to sue this dumb ass and would like your advice again.
Thanks Art

Hey Art,

Based on what you have stated, I don't see any grounds for a law suit. Keep in mind that an appraisal is an OPINION of value. It is reasonable to consider that values have declined significantly since 2005. You did not disclose the dates of the last two appraisals so if they are a year or more apart, it is also reasonable to assume that values have declined between each appraisal. If the last two are recent, they are still within 10% of each other and it is acceptable that two appraisers could have a difference of opinion by that margin.

The differences in square footage appear to be based on the addition, which the third appraiser may have not included it in the GLA, but rather itemized on another line in the grid. It also appears that all three appraisers measured the house and were between 30 Square foot of each other (assuming that the addition is exactly 600 Square feet). That is a pretty good indication of accuracy. It may be possible that your estimate of the square footage is off or perhaps you are including additional space that the appraisers left out (a two story foyer with open space, etc.).

We had an appraisal on our home that we are selling and it was disclosed that the appraiser missed we have put 7200 on the new windows and the value came in lower by 6K then the appraiser stated he missed it and raise the appraisal to the sale price, now the bank will not accept the higher amount saying they have be conservative... can I sue the appraiser if the lender will not accept the value?

Surely you can't hold the appraiser responsible for the decisions of the lender. I am actually surprised that the appraiser was willing to increase the value because of some windows. But the lender's decision to loan money on a lower amount is completely at their own discretion. I have seen lenders drop perfectly legitimate values to reduce their own risk and no other explanation than that. It doesn't happen often, but it does happen.

Our appraiser was disciplined by the state board has a result of our complaint. If we sue what can we collect. Her appraisal did cost us a loss in our ability to refinancing and by the time it was sorted out that particular loan was no longer available.

I doubt you will find any experts on tort law here. You may want to consult with an attorney to determine the amount of damages if any. Since there was no specific dollar amount of loss, only a loss in opportunity for a specific loan program, don't be surprised if the only thing you might win in court is your appraisal fee back.

Welcome back Benjamin!! It's great to see back in the forums...

What can I do if the appraiser doesn't appraise my home accurately? I live in a neighborhood of varied customed homes. Mine happens to be one of the best, but not the biggest, and thus cannot be compared with "comps" that look at square footage. We have double the acreage as others, our home was designed by an architect, not a draftman, we have solar, and our architecture is extremely contemporary/modern which is opposite of the other houses. Our house could not be reproduced if it were to be valued per square footage and along the lines of the mundane homes in the area. We are selling the home, and I anticipate it will be appraised $500,000 less than it 's value, which will prevent it's sale at our price. I would like to be ready with a recourse when the low appraisal returns.

Hi Guest!

Welcome to forums!

You can check out the given page in this regard: "http://www.appraisers.com/service/faq/FileAComplaint.php"

Feel free to ask if you've further queries.

Sussane