From: 18971@rhodes.aero.org
Subject: Re: Need Info on Appraisal
Summary: Many sources for appraisal info
Organization: The Aerospace Corporation, El Segundo, CA. USA
Distribution: usa
Date: 23 Jul 92 13:11:36 PDT

In article <1992Jul22.181110.18840@adobe.com>, kendall@adobe.com (Janice Kendall) writes:
> In article <1992Jul22.080745.1@rhodes.aero.org> 18971@rhodes.aero.org writes:
>>In article <1992Jul22.021844.17869@adobe.com>, kendall@adobe.com (Janice Kendall) writes:
>>> 
>>> I am interested in knowing about the appraisal process.  If I am buying
>>> a house, the lender will send an appraiser out to make sure the loan is
>>> secured by the value of the house.  I will be billed for the cost of the
>>> appraisal.  
>>> 
>>> Does the potential buy generally get a copy of the appraisal report (that
>>> they paid for)?  
>>> 
>>> Do they generally get the report during escrow or at the closing?
>>> 
>>> Thanks,
>>>    
>>>  Janice Kendall    kendall@adobe.com    ...!{decwrl|sun}!adobe!kendall
>>> 
>>> 	"Creativity overcomes violence"
>>> 			John Bradshaw in "Homecoming"
>>>
>> A little known law was passed and became effective as of December 1991.
>>This law requires the financial institution to comply with the customer's
>>written request for a copy of the appraisal that he/she pays for. This
>>information came from a recent article in the Los Angeles Times. Banks and
>>S&L do not like this law and will in general not tell customers about it
>>voluntarily because of potential law suits and liability.
>>
>>My recommendation is ask first for the good faith estimate of the closing
>>cost. You should receive it within 3 days after turning in you loan
>>application as required by law (Regulation Z). If this statement shows a
>>charge for appraisal, send in a written request for appraisal report
>>when it is available to the bank. If appraisal fee is not shown, ask
>>about it to be sure who would pay.
>>Good luck. Let us know the result.
>>Quan 
> 
> 
> Can you give more specific information on this law?  I did send a written
> request for the appraisal report, and they told me it was their policy to
> not provide the report until closing.  That irks me.
>    
>  Janice Kendall    kendall@adobe.com    ...!{decwrl|sun}!adobe!kendall
> 
> 	"Creativity overcomes violence."
I am sorry that I do not have more information on this law. My suggestion
is to contact the Department of Real Estate at the office near you for more
information, or spend $35. to have a consultation with a recommended real
estate attorney in you area. The cost of prevention is far less than that
of repair/recovery. Your lender definitely is trying to prevent the deal
from collapsing from the appraisal report. I do not like this treatment but
can understand. An appraisal is an OPINION about value, not scientific fact.
Your knowledge of past values of comparible properties may give you a
different opinion about the one you are buying. On the other hand, a good
report must support the appraiser's opinion by convincing data. Part of
the data should indicate market trend and condition in the neighborhood.

Another approach to get similar information that the appraiser got is to
ask your agent/broker many questions about neighborhood, pending laws or
ordinance, recent sales, pending sales, current listing and price trend.
Unless the appraiser lives there, he/she would depend on these sources
for the report anyway. I hope you have a competent inspector for the property
to tell you the physical condition it is in. The termite report also tells
a lot about the status of major component of the house. It's very unlikely
that a major problem like ground settling, structural problem would be
covered up by all these "professional".

Quan
Xref: sparky misc.invest.real-estate:334 misc.consumers.house:9886