I recently heard a case in which I personally believe an appraiser is being overly picky and troublesome. Here's the scenario, and I'd like to hear your opinion on this....

Purchase of townhome between two people that know each other in a FSBO transaction with FHA financing. In the initial appraisal, the appraiser marked the property type as detached, when in fact it was attached. (small technicality that must be corrected.)

The appraiser also noted some tile in the bathroom floor as cracked. While it was not coming up, it was cracked, located at the entry door to the bathroom. The buyer is ok with it as is and is not requesting the seller to fix the floor. However, the appraiser indicated that it should be fixed and estimated a cost to cure of $500. The notation of "cost to cure" could result in the requirement by an underwriter that this be fixed prior to closing, in which case the buyer and seller have to determine who does it and things get delayed until fixed. More of a mess than needed over something so small.

So upon review of the appraisal, the loan officer asked the appraiser to correct the property type and if they could remove the comment of the cost to cure since it is such a small amount and the buyer is ok with it. This is not anything that affects the safety, functionality or value of the home. The LO did not request they remove the comment of the cracked tile itself, nor hide it. But a "cost to cure" indicates a deficiency that must be addressed, which isn't really the case here. But in no way was the LO asking for some modification, inflation or change to the appraised value, nor requesting to remove anything of consequence.

The appriaser not only decided NOT to remove the cost to cure, but also added a note that the lender requested the note of the cost to sure be removed and provided further argument that in their opinion "a buyer would want this fixed before buying" it so the appraiser felt it should be mentioned and would not remove the cost to cure as requested.

In asking the appraiser this question, the LO did nothing wrong and a simple no would have sufficed. But to go further and make a note on the appraisal basically renders the appraisal potentially worthless! And the LO can't submit the original appraisal because the appraiser mismarked the property type. So now that the property type is corrected, this notation attached as well. Submitting an appraisal with this type of notation could raise red flags that cause all kinds of slow downs on this deal (and others to come.)

So my question is this... What is your opinion on how the appraiser handled this? Or do you feel the LO was wrong for even asking?