Ok so I am kind of freaking out. First I want to say I hope this is the right place to post this I wasnt sure as it does apply to my business.
I suppose something had to go wrong, as everything thus far had gone so smoothly. As some of you already know I am in the final stages of purchasing an already established pastry shop and am also converting part of my home into a commercial kitchen to house said shop. My hubby owns a small tax and bookkeeping firm and does the books and taxes for our contractor, so we have worked out a barter system to get our kitchen built. So far so good. Well in order to come up with the down payment, pay for the attry fees, and electrician, plumber, parking lot and various other expenses we decided that we needed to take an equity loan out on our house. We just had it appraised 4 months ago as we were considering selling (until the deal with the shop happened). So we began our equity loan process with the bank and the appraisal lady came the other day. Now bear with me for a second because this is were the rant is going to kick in. This moronic inbred halfwit twit valued our house waaaaaaayyyyyyyyy below what it was worth. We have 5 acres of land and she set our value at $10,000 LESS then a house exactly like mine on .8 acres in a less desirable area??!!! I dont even understand how that is possible?? So currently our house (according to this nimrod) is worth $60,000 LESS than what it was worth 4 months ago, and to add insult to injury she valued it LESS than what the town has it assed at. So now I am not sure what the h*ll we are going to do but I am going to grab a bottle of wine and go hide in my closet and cry, and lament the fact that I ALMOST bought a pastry shop, and currently have a ½ built commercial kitchen in my home.
If anyone has an in with the Big Guy upstairs could you put in a good word for me?
Thanks for letting me vent.

Oh my goodness!!!

I would think it would be your right to ask for another appraisal. Or maybe pay for an appraisal through a different company. Then when the new company tells you that you house is worth what you thought it would be worth you can take that to this nimrod and tell her that these numbers are too far off.

I've been following your story from the beginning. I feel like I'm living it with you. All of the excitement and now this!!!! You will make it through. I will definitely be praying for you. Please keep us posted on everything!

I agree...isn't there anyway to get another appraisal/second opinion.

sounds like she may have appraised just the house and forgot to add in the property.

Get a 2nd opinion. that is nuts.

awe thanks so much for your posts, I really appreicate it. My Hubby is just right out of his mind he is so angry. I just made a call to my best girlfriend to rant and she says "wait what is this womans name?" so I told her she says "OMG We know her!! we just built a house for her in fact I (meaning my girlfriend) painted it!! She loves us!" I told her "Good give her a buzz and let her know that she just completly sold us under the school bus"
She offered to call her for us but it's to late for that, she can not call the bank and tell them she got the numbers wrong, unfortuantly it does not work like that. But it does make me feel a bit better to know that she will know that her little goof up casued someone near by major problems and maybe she'll be a bit more careful in the future.
Oh well I guess I am going to enjoy my wine, finish a birthday cake that is due in about 2 hours and try not to think about it. Tomorrow is a new day, God did not bring us this far to drop us on our faces, it's time to come up with plan B...No problem

Our bank allows us to use the HIGHEST value we can document, ie: your tax assessment. Ask them to send out another appraiser, and give the appraiser your tax assessment.

It may take a little longer, but in the end, you should be able to pull this out. Good luck and keep us up to date.

OH NO!

I'm so sorry to hear this! I know how excited you've been!

Not that it will make you feel a whole lot better, but a friends mom is a real estate agent and she said it's happening a lot lately. Apparently because the real estate market is in such a slump houses aren't appraising the same as the did a few years, even months ago. She's actually advised a few clients to hold off selling for a few months if possible in hopes that it turns around.

I really really hope there is a way that this can work out for you!
-Michelle

Contact another bank that uses a different appraiser!

We had a situation a few years ago when refinancing- our house had been appraised a couple years earlier, and when we wanted to refinance, we had added on a garage that is the same square footage as our first floor, plus finished the basement, plus did extensive landscaping. The second appraiser for the bank were were refinancing with came in and appraised our home at $40,000 LESS than what it was appraised at before all the additions and work! We went back to our original bank, and they sent a different appraiser out, who appraised our home at $80,000 MORE than the other bank's appraiser. What a HUGE difference! So don't give up hope, find another bank and see what happens. I also called up the bank with the bad appraisal and told them I refused to pay for the appraisal since it was so far off- I never had to pay it.

Sponge, I'll take it to the Big Guy right now and remember weeping may endure for a night but joy comes in the morning.

Be Blessed,
Cynita

That really stinks but if the township assessed the property higher, you should be able to use that document with the bank. And if things don't work out at all to buy the shop, take this lower assessement and go to the township and request they update it to reflect this lower number and lower your property taxes. At least all wont' be lost.

Good luck

wow I really feel for you. I really hope everything works out in the end.

You mentioned that your town has assessed your property higher than the full appraisal. I recommend (as a former lender with some - albeit very little - real estate experience) that you ask your lender about using an AVM (Automated Valuation Method). This is one of the least expensive methods used in real estate loans, but not every bank or lender uses it. It is a valuation method using public records, comps, etc. to determine the value of your home.

It can't hurt to ask! All they can say is "no."

Hope this helps and good luck!
~adknight

tell them to send the appraiser back and this time walk through everything with her. We purchased a rental property a few years ago. The appraiser did show and did her work. A few days later the bank called and basicly told us that we were crazy if we thought we were getting a mortgage for a 50 year old trailer! A trailer? The house isn't even shaped like a trailer so where she got this we do not know. We made her come back & my husband dragged her into the attic to prove it was a framed house! Crazy!!! You might also contact a real estate agent for some help!

Get a second opinion! I know that they can cost a bunch. You chould have them come out again and re evaluate. The moron that did ours 3years ago actually said we had a NON code room added! Mind you there are 3 others on the street like ours.... DUH! THEN when we went to sign papers the wrong house was in his pictures he took of the back of our house!!!
Good luck with this.

PS: Tell him you want to see the comps. in the area of what is selling and appraising at.

HTH

I didn't pay my last appraiser either. According to the moron and the diagram he drew of my house, I lost 2 closets (and there are only THREE to begin with), gained Air Conditioning, my double paned windows mysteriously became single pane windows and he marked me down for an overgrown tree that wasn't mine!!.

I was perfectly fine valuation wise since CA prices are crazy...but I wasn't paying for him to screw up like that. I called and told them that as soon as they showed me my "AC" I would be glad to pay their bill.

These stories are so timely. In today's paper, our governor pretty much threw out the 2007 assessments and told everyone to pay their 2006 taxes until they can straighten up indiana's big mess. This is after days of protests at the Governor's Mansion, downtown, at the city building (where the city tried to raise the income tax on top of these horrific property taxes that just came out!)

There are horror stories about property taxes that went from $350 to over $5000 due to recent assessments. I think those were the numbers from an article yesterday .... the guy worked for $5 an hour plus tips as a bellhop in a hotel and was paying his child support out of that, then gets hit with a tax bill like this ... due and payable in 10 days. People who have lived in their homes for over 40 years ... may lose their homes because of the property taxes. I have never seen such a financial mess ... the stories make me cry every single day.

I'm sorry to digress a bit from the thread, but I think it goes to show that you just can't take appraisals and assessments at face value ..... scrutinize them and make the person who handled them accountable!

I don't have any good advice to offer, but these CC'ers have given some great replys to your post. I hope things work out for you I would love for you to get your bakery, Good luck and know you are in my thoughts.

Wow thank you all so much for your stories, advice and offers for prayers (of which I will take any you have to give)
So here is the updateI made a birthday cake I didnt love last night but the client adored it so thats good. I cried my self silly over a bottle of wine, and now have owie head because of it. I sent Hubby out when he got home from work to a friend of ours who is in my opinion the BEST masseuse in the area, and truly think if I hadnt he was going to have a heart attack because he was so worked up. After he got back he checked his e-mail and our lender sent him a note telling him to send the appraisal we just had done 4 months ago because they are valid for 6 months and he was going to take it down to the underwriters and beg & plead. The lender said he agreed that the woman who did our appraisal is out of her mind and sent it to us to reviewshe is nuts. So where are we at? Hubbs sent the other appraisal in, the guy is talking to underwriting right now and hopefully we will hear soon. In the mean time Hubby is already begining the whole process over again with other lenders just in case, as we need this done and over with in the next 2 to 3 weeks because we have to start getting the electrician, plumber etc etc etc etc working.
So thats that, Hubby has assured me last night that we will make this happen even if he has to sell his (are you ready for this, I almost choked on my wine) motorcycle to help cover the costs! Wow huh?? I will defiantly keep you all posted as I learn more and can not even begin to thank you for rallying around me during this insanity. You all truly are THE BEST, and are making it much easier to stay positive. This will all work it self out and its going to be great! I consider my self very blessed that I have such a wonderful group of folks to share it with. Thanks everyone

Oh, I'm so sorry for you....
We had a similar situation.... We pulled money out of our house to do things like new siding, finish the basement, gut and remodel 2 bathrooms and the kitchen.
We went to refinance a couple of years later and our appraisals (both of them) came back less than what they did 2 years prior BEFORE all the work and money we put into our house. Apparently they aren't kidding when they said house values have taken a hit. We were going to move too ~ but, were told by 2 different appraisers that we would be crazy to sell our house right now since it's technically worth so much more than what it appraised for. The market stinks right now....
I really hope things work out for you. Keep your chin up ~ it will change I'm sure. It has too!

Hope everything turns out good for you.

I hope everything works out...my fingers are crossed over here for you!! The woman sounds like a nimrod!!

You need to find another bank and another appraiser. At the very least the property is worth what the town says it is worth. Send this woman over to me, maybe she can lower my property taxes!! Good Luck.

Well we are still doing the little dance and are hoping to have some sort of answer soon, but I am guessing no new news until monday.

Thanks so much for your comments. Yes my Hubbs rocks!! He really is a great great guy...and it helps considerably that he is 6'4 and beautiful
I really am a very lucky girl, so I guess in hindsight reguardless of what happens I truly have no cause for complaints. I won't say everyday, but I really try to thank "the Big Guy" often, and truly belive that he is looking out for me.
I'll keep you all posted as soon as I hear something new

Keep your chin up. That woman sounds like a real "quack"!!!! I do hope that they figure out and do the RIGHT thing!!! I know your area, and there is no way that she figured in the acreage, and run the numbers right.

I am certain that things will be fine with you being able to open your shop like planned.

I'll send some extra prayers to the Big Guy upstairs for you. If for nothing else, but to keep you and your hubbys blood pressures fairly even.

Will wait to hear how things go. This is just a little flat cake in the road, I'm sure you know what to do with flat cake right???? Make cakeballs!!!!! (then throw them at that first looney!!)

Take care!!!!

Hiya everyone,
Well today was an incredibly long busy day today at the shopfor some unknown reason everyone in this area had a birthday today. I just got done wrapping up my last wedding cake and its 8:30.
At any rate while I was knee deep in chocolate ganache and mini fruit tarts it dawned on me that it had been awhile and I should update you all on the goings on. Well not a lot has changed. This loan has been probably one of the most frustrating things we have had to do in a looooonnnggg time. We did get another appraisal, but had to go through a different company, and a new application process. The 2nd appraisal (as far as we know) went muuuuccchhh better than the first. As a matter of fact the guy who did wanted to know what kind of drugs the 1st lady was onlol. So after shuffling a whole great big bunch of paper work around, you know a picture of me and Mickey Mouse from 1978, a signed notarized list of every guy I have ever dated in my entire life, 1 red shoestring, and half a bluebird eggshell. We are now playing the waiting game, looks like everything is a go but I do not want to count my eggs (blue bird or otherwise) before they have hatched. We are hoping to have an answer by Monday.
I promise you that as soon as I know you will and I love you all tons for going thru all of this with me. Keep the prayers and good loan vibes coming I think they may be working.
Ok now I have got to get some homework doneI am so tired there is a distinct possibility that my teacher is going to get carrot cake instructions instead of an essaylol