Posted on: 22nd Sep, 2009 08:02 pm
I was trying to buy a home using a VA loan. The home is a large older brick home on the water. Its located in Charleston, SC on tidal creek water. The water is 7' deep at high tide, has 2 docks and leads out to the intercoastal w/ no water way obstructions. The land is 1/2 acre with the largest side of the property facing the water. (it sort of cheese wedges to make the widest part on the water front)
The bank sent a VA approved appraiser to the property. The appraiser returned his report giving the home the comparables for square footage, pool, land and structure value but, wrote on his report that he could not find a home on the water to compare it to give the water any value. He reported the water as a 0 dollar value. He compared this 1/2 acre home on the water to 3 homes inland that were not on the water, not on marsh, no water access or even water view. He said they were comparable lots in his opinion.
I told him that Charleston, SC was full on properties on the water and that he needed to compare this home to a water home. We all know that living on the water is more costly that a home that is surrounded by other homes. One home he compared it to was on a corner w/ 2 sides of the property have a street running down both. I submitted 5 homes in the vicinity of this home w/ in a 2 mile radius for him to reconsider and he responded by saying "my opinion stands". He appraised the home at $240k. The asking price of the home was $300K.
I then dropped the bank that I was using the VA with, contactacted another lender and went FHA home loan. They just completed their report and the new appraisers word were, "I'm blown away at how he could have valued the home at $240". The new appraiser came in at $300k after comparing the house to homes on the water that had sold in the surrounding area.
Using the FHA loan has caused me to fork out 3.5% down payment (if I was able to go throught with my VA loan, i would not had to), I also have to now pay PMI insurance (which also I wold not have to had pay w/ a VA loan)....so in all this appraiser caused me to not be able to use my VA benifits and will cost me money in the long run.
We are due to close on the new home in 1 week w/ the new appraisal. I want to sue this first VA appraiser for the above stated reason, but want a second opinion as to if I have grounds and what type of attorney do I contact? Any help would be great!!!
Rob
The bank sent a VA approved appraiser to the property. The appraiser returned his report giving the home the comparables for square footage, pool, land and structure value but, wrote on his report that he could not find a home on the water to compare it to give the water any value. He reported the water as a 0 dollar value. He compared this 1/2 acre home on the water to 3 homes inland that were not on the water, not on marsh, no water access or even water view. He said they were comparable lots in his opinion.
I told him that Charleston, SC was full on properties on the water and that he needed to compare this home to a water home. We all know that living on the water is more costly that a home that is surrounded by other homes. One home he compared it to was on a corner w/ 2 sides of the property have a street running down both. I submitted 5 homes in the vicinity of this home w/ in a 2 mile radius for him to reconsider and he responded by saying "my opinion stands". He appraised the home at $240k. The asking price of the home was $300K.
I then dropped the bank that I was using the VA with, contactacted another lender and went FHA home loan. They just completed their report and the new appraisers word were, "I'm blown away at how he could have valued the home at $240". The new appraiser came in at $300k after comparing the house to homes on the water that had sold in the surrounding area.
Using the FHA loan has caused me to fork out 3.5% down payment (if I was able to go throught with my VA loan, i would not had to), I also have to now pay PMI insurance (which also I wold not have to had pay w/ a VA loan)....so in all this appraiser caused me to not be able to use my VA benifits and will cost me money in the long run.
We are due to close on the new home in 1 week w/ the new appraisal. I want to sue this first VA appraiser for the above stated reason, but want a second opinion as to if I have grounds and what type of attorney do I contact? Any help would be great!!!
Rob
Hi roe_robert,
If you feel that your earlier appraiser did not appraise the property correctly, you can definitely sue him for it. You can contact a real estate attorney and take his opinion in this case. He will help you in filing the case and taking the required steps.
Thanks
If you feel that your earlier appraiser did not appraise the property correctly, you can definitely sue him for it. You can contact a real estate attorney and take his opinion in this case. He will help you in filing the case and taking the required steps.
Thanks