PORTLAND REAL ESTATE APPRAISAL

George was pleasant enough when he came out but didn't seem to do as much research while at the home as a previous appraiser had (i.e. he didn't look in the attic or crawl space. Asked very few questions). When I received the appraisal back from George I was very surprised to find that the appraised value of my home was 15 - 25% less than comparable homes in my neighborhood. Some of the major issues I found with the appraisal were as follows: 1) Comps - The vast majority of the comps George provided were not in the same neighborhood as my home even though there were several recent sales in my neighborhood. Most of the comps George chose to use were from an older less desirable neighborhood. One of the comps included a house that is almost 100 years old (my house is 9 years old). Some of the houses were 1,000 sq. ft or more smaller than my home as well. 2) Incorrect square footage - The square footage George calculated for my home was approximately 30 - 40 square feet less than the appraisal I had done when I bought the house 2 years prior. 3) Room classified as a basement - One room in my house was classified by George as a basement even though all 4 walls of the room are above ground. This room is approximately 400 square feet and because George classified it as a basement, it reduced the appraised value of the home by over $10,000. 4) No mention of mountain views for home - My home has mountain views. This was specifically mentioned in a previous appraisal and additional value was added to the home because of this. However, George didn't mention it in his report nor did he add value because of it. After reviewing the appraisal I filed a rebuttal for the reasons mentioned above. I also provided comps for 3 homes in my neighborhood that had sold in the previous 3 months. These homes had similar square footage and on average had sold for 15 - 25% higher than my appraisal. I was told by the lender I should hear back in 3 - 5 business days. After a week and a half I contacted the lender who told me George had failed to respond. The lender contacted George again and 3 days later we received a two sentence response from George. George simply said that the comps I provided were "superior" homes to mine and that any room below grade was considered a basement. He failed to explain why the comps I provided were "superior" homes. He failed to claim why he considered the one room in my house a basement even though it didn't meet the definition of a basement that he provided. He didn't even address the other issues. My lender stated that they had an exclusive contract with Accurate Group which had sub-contracted the appraisal to George. Consequently, I will be choosing a different lender and making sure they use an appraiser with a good record on Angie's list.

The licensed appraiser, George P. Heimbegner, required two and one half weeks to respond to a request for an appraisal during a time of very low home sales activity in Portland. His appraisal report was submitted with errors and omissions, includng: 1. The number of parking garages was reported as 10 when in fact there are 4. 2. The size of the garage was described as single when in fact it is a 434 square foot double garage. 3. The garage value was estimated to be $5,000. This is a deeded garage, with its own Tax ID, and it sold in 2006 for $38,400. Deeded condominium garages are rare in SE Portland and add value on the order of $25,000 or more to the unit. 4. The appraiser provided photographs of a washer/dryer and a refrigerator in his report but failed to list these as appliance items included in the sale. 5. The report noted no updates in the prior 15 years when in fact at the time of the condo conversion in 2006, the kitchen and bathroom were remodeled with new flooring, fixtures and appliances. Also, plumbing and electrical utilities were updated at that time. 6. Comparable condominium values were established from a web search, none of which included units with deeded garages. Two of the comps were from a condominium which is in litigation between the HOA and a contractor, and as such, the units can only be sold for cash because banks will not lend on properties invoved in litigation. Cash only properties are devalued relative to properties which qualify for conventional loans. The appraiser did not respond to requests to revise his report relative to the items identified above.