It is the real estate appraiser’s job to report what is there. There often is a great deal of chatter from Realtor’s, lenders and borrowers to tempt the appraiser to report something other than what is there.
I looked at a house recently that was 50 years old and in quite good condition. It measured 1,320 square feet of living area with a one car garage. However, when the county records were checked, the house showed only 884 square feet of living area.
For the legitimate players, this is a red flag. It looks like someone increased the size of the house without permits.
If the lender makes the loan without concern for this disparity, they could be at risk of future expense to repair the house if the local building authority comes along and wants to inspect the old work (plumbing, electrical, framing, etc.). That could require the tearing out of finished walls. Messy and expensive with no net gain in the value of the property for all the work that would have to be done.
In the case of this property the Realtor sent an e-mail to me suggesting that Linda Franklin (the assessor) had agreed to go into the data files and change the square footage to 1,320 square feet. And, that I should continue and complete the appraisal.
I have known Linda since the 1960′s. She is a good person and a good assessor. She would never do that.
The point is that the appraiser must be objective and report what’s there. We are the eyes of the lender. The building department reported that there had not been a building permit taken out on that house since it was completed in 1958.
The Realtor is probably unhappy with me. But, the lender is happy. The borrower is happy. And, no one is left at risk for a bad surprise in the future.
Pacific West Appraisal Services, Inc.
pwas.net