Appraiser’s boo-boo: telling listing agent appraisal value of property in the middle of negotiations!
During our buyer investigation period, we ordered inspections, and as a result of our findings, there was enough to justify a request for price reduction.
Imagine our surprise when the listing agent said the appraiser told her how much the property appraised for. She got the results of the appraisal before the buyer and I heard back from the lender.
What appraiser does that?
When I asked the listing agent why the appraiser would tell her about the appraisal value, she said she had worked with him before, and he probably thought it was okay to share that information.
Well, it certainly was NOT okay.
He nearly blew our negotiation process into smithereens. Thankfully, the buyers and sellers reached an agreement for a price reduction --- just a day before that blabbbermouth appraiser called the listing agent.
- The appraisal was ordered by the lender, so the lender is the first one informed about the report
- The buyer paid for that appraisal. If he wanted to share this information, it’s his prerogative....but if he doesn’t want to, he shouldn’t and couldn’t be compelled to share
- The appraisal and inspection reports are tools for negotiation.
- If the property appraises for less than what the buyer offered, this leaves room for negotiations wherein the buyer has to consider his options: a) come up with the extra cash; b) back out of the sale; or c) negotiate with the seller.
- In this case, because the appraiser notified the listing agent what the appraisal value was, he favored the seller when he interfered in this process
I complained to the lender. And the buyer and I made sure this was relayed to the appropriate parties.
California Office of Real Estate Appraisers Complaint Form
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