How to Effectively Make a Complaint About a Horrible Real Estate Appraiser

Introduction

Real estate appraisals are crucial in determining the value of a property, which can be particularly important for buyers, sellers, and lenders. However, when an appraiser does not meet the expected standards, it can lead to disputes. Understanding how to effectively make a complaint can protect your rights and ensure that your property's value is accurately assessed.

The Role of Real Estate Appraisers

Real estate appraisers are professionals who evaluate the value of properties based on various factors, such as location, size, and condition. Like other regulated industries such as doctors, lawyers, and beauticians, real estate appraisers operate under strict guidelines. If you encounter an appraiser who behaves unethically, is biased, or provides inaccurate information, you have the right to file a complaint.

Process to Make a Complaint

The Regulated Industries Complaint Office (RICO) is the entity you can turn to if you have concerns about a real estate appraiser's behavior. You can find the specific RICO office for your state by searching online under state government resources. This process allows you to report unethical or unprofessional behavior systematically and effectively.

Steps to Take Before Filing a Complaint

Before initiating a complaint, consider taking the following steps to address the situation:

Request Reconsideration: Ask for a reconsideration of the appraisal value. This request should be made formally through your realtor or directly to the appraiser. Provide Comparative Data: Ask your realtor to provide recent sales of comparable homes in the area. This data can help justify your sale price and provide a basis for a higher appraisal value. Understand Appraisal Standards: Learn about the standards and methods used by appraisers. An appraiser can only consider properties within a 20% size variance of the subject property. Factors like lot size, location, and home features significantly influence the valuation. Consider Adjustments: If you believe the original assessment is erroneous due to outdated or faulty assumptions, discuss adjustments such as discounting for facing a busy road versus a lakefront property or providing extra compensation for additional features.

Alternative Solutions

If the initial attempts do not result in a satisfactory resolution, consider these alternative solutions:

Negotiate with the Buyer: Suggest to the buyer's realtor that if their buyer uses a different lender, you will pay for a new appraisal. Note that if the buyer is using an FHA or VA mortgage, the initial appraisal remains valid for a certain period. Hire Your Own Appraiser: If you are selling the property as a For Sale By Owner (FSBO), consider hiring your own appraiser. A professional home appraisal can cost around $350 and may provide a more reasoned assessment.

Conclusion

Dealing with a controversial real estate appraiser can be challenging, but taking the right steps can help ensure your property is appropriately valued. Familiarize yourself with the complaints process, understand appraisal standards, and consider alternative solutions like negotiating or obtaining a second opinion. By following these guidelines, you can effectively address any issues and protect your interests.