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Appraisal Horror Story That Could Have Been Avoided Easily

Our top producing realtors take appraisals very seriously. They zealously ensure inspection dates are set promptly, and they often show up to meet the appraiser whether they are listing or selling agents. They often show up with comps in hand and a friendly smile even if there is a lock-box at the house or a seller still residing in the house.

We endured a recent horror story that drives home the importance of realtors staying involved in the appraisal process. We had a rush purchase that had to close in 8 business days. We ordered the appraisal immediately and paid for a rush. The listing agent was the contact and she simply referred the appraiser to the sellers. The inspection had to take place on Thursday to make the timing work.

The sellers, however, were short-selling; they were behind in payments and were in the process of moving out of the house. They had no equity, damaged credit and were not the least concerned about making sure an appraisal inspection took place.

Despite our urgency, the appraisal inspection did not take place on Thursday, and nobody knew about this until late Friday. This forced us to get the appraisal inspection and write-up done the day before loan documents were drawn (at no small cost). WORSE: The seller left the water on when he moved out Thursday morning, flooding the laundry room and garage. The appraiser had to “call out” the damage.

Our contractor has been at the house all night doing repairs at a cost of $4,200. Our appraiser is re-inspecting the house today.

If the listing agent had simply met the appraiser at the house on Thursday instead of leaving it to the more than an apathetic seller, none of this would have happened. The inspection would have taken place on time, and the water leakage would have been discovered long before any damage was done.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646