Hello All:

All real estate agents should be very aware of the impact of a bad appraisal on the possibility of getting a loan. This is an actual case. An appraiser from out of town , heck out of area, appraised a four unit building. He did not like it although the building is in great shape. It may not have nice architectural details, but physically it is in good condition. There are tenants in all units. So here is what the appraiser did: his "opinion" is that the rents are too high. Strangely enough, the tenants don't think so. The danger is this: an out of town appraiser has no idea about the rental market in the subject area. The problem is that there is no recourse against the "opinion" of the appraiser.

If anyone is in the Bay Area, and would like to know more, let me know. But this should be a warning to all Realtors. Make sure you get an appraiser from the area of the subject property. At least you have a chance they know what they are doing.

Good luck.