Legal Question in Real Estate Law in California

The appraiser's primary tool in determining the market value of a property is to find recent sales of comparable homes in the area. The appraiser then adjusts up or down based on differences between the properties, such as slightly less or more square footage, better or worse curb appeal, etc. If your home is comparable in size, style, construction and location to a lot of short sales and foreclosures, those are the appropriate "comps" for your house. If you put your house on the market, those are the houses it would compete with and the price it would fetch would be in comparison to those houses. This is what they mean when they say those houses drag down the market. Until the inventory of those houses clears through the market, they will be the benchmark against which all homes are priced, because buyers have the option of buying them and will not buy your house unless it is priced to compete with them. Therefore the appraiser values your house accordingly.

I agree with Mr. McCormick. In addition, I'd point out that the appraiser is working for the lender and presumably is working according to guidelines established by the lender. The appraiser is not an arbitrator or referee, and owes you no duty to be impartial or form his or her opinion of your house's value according to your theories (even though you may be right!).

Appraiser make mistakes. My recent experience with them includes miscounted bathrooms, un-noticed second stories, hardwood misidentified as Pergo, etc. If a factual mistake occurs, I think you have a right to complain.

On the other hand, there are different theoretical approaches to appraisal, which is an art and not a science, and after the recent lending debacle, banks have adopted much more conservative approaches to valuing proposed collateral. Finally, while I'd think the lender should be willing to discuss their appraisal theories and principles with you, I don't think it, or its appraisers, would show you or discuss appraisals made for others.