2321 E Calle Lustre, a pretty great looking remodeled house in the old foothills, went to contract on March 2nd from a $949,000 ($191/sf) list price. And it should have easily appraised. But it didn’t. The appraisal came in substantially below the contract price,
so the deal was killed.
Now I can’t prove to you that it should have appraised, but it should have, easily, and with money left over. It’s a no-brainer. But apparently not to the so-called professional appraiser.
Meanwhile the buyer, a prominent individual who is moving to the area, after having spent a lot of time, is back to square one and out searching for another house. But the sellers are really worse for the wear. They moved out and had all their beautiful furniture and other stuff moved out and put in storage. And now they’re in the process of taking a few giant steps backwards – and getting their stuff out of storage and back into the house in preparation for putting it back on the market and starting all over again. Meanwhile, they’ve spent a lot of time and a lot money and it’s all for naught because of a faulty appraisal. This has got to stop. Peoples lives are being thrown into turmoil because of the incompetence of the appraisal management companies and the appraisers they assign. And in most cases they walk away without another thought.
But maybe not this time. I understand the sellers are pursuing legal action against the appraiser and the appraisal management company. Good for them, I wish them all the luck and I volunteer to help in any way I can. Something’s got to be done to wake these people up.
I’ve written about my experiences with faulty appraisals HERE and HERE and HERE
And we find ourselves in this mess thanks to the wisdom of the Obama-Dodd-Frank financial reforms. For a recent appraisal that was done for a buyer I was working with the appraisal management company was out of Mumbai. Seriously, they’re headquartered in Mumbai India and they’re assigning appraisers to do appraisals in the Tucson Foothills.
Now that’s the kind of change you can believe in.
UPDATE, it’s now back on the market
2321 E Calle Lustre Tucson, AZ 85718 (listed by Long Realty)
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