Can you get a house re-appraised if you didn’t like the first guy’s answers?
My sister put money down on a home that was listed as residential property, it was infact a duplex that she planned on moving into both halves and eventually making it into one home. She got approved for the loan, sent the check to the insurance company, and put the money down, and when she got it appraised, the guy told her that it was commercial property and couldn’t get the house unless she put 20% down. She cannot do that, and the insurance company and real estate places have already cashed their checks. She is very interested in owning this home, what can she do? (it was listed as residential property i believe, this is her first time buying a home, and she needs a big place.)
The house is listed as residential-multifamily, and the appraiser came in and said it was commercial. It is located in eau claire, so is there anything that she can do?
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3 comments
PMM on August 24, 2009 at 12:15 pm
Is it truly classified as commercial property? Perhaps it is being classified as Owner Occupied Investment Property. This means that you will live there as your primary residence, but it’s also investment because you *could* rent out the other side.
Different guidelines for commercial vs. investment property. Either way, there will probably be a rate variance because it is not just a plain ‘ol single family residence. She should shop around with other lenders to see if she can get a loan with a smaller down payment.
If the appraiser was ERRONEOUSLY stating it as a commercial property, there’s no need to re-appraise. Find out for yourself (through county records) if it is in fact, zoned commercial. If it is not, bring your proof to the appraiser and have him/her update the report.
Typically the only time you want to re-appraise is if there is a dispute regarding the value of the home.
nickieandsarahsmommy on August 24, 2009 at 12:15 pm
I believe that it is possible to get it reappraised if you truly believe that the estimate was incorrect. I would also point out the fact that the property was listed as residential not commercial that is false advertising.
Qyllix on August 24, 2009 at 12:15 pm
You always have that option. It should be noted however, that the appraiser has to look at the highest and best use of the property, as it sits vacant. The highest return for that property is most likely that of a duplex. In this case you will probably end up being the same.