From: Slain 
Newsgroups: misc.invest.financial-plan
Subject: Re: Appraisal vs Selling Price
Date: Mon, 24 Sep 2007 09:27:36 -0500
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On Sep 22, 10:47 am, "Daniel T."  wrote:
> "Usenet2...@THE-DOMAIN-IN.SIG"  wrote:
> > He noted that, if he over-valued a house (stating that its value
> > was higher than reasonable), he could end up personally liable.
> > Like if the buyer gets a mortgage based on the inflated amount.
> > And then defaults, leaving the bank with a house that isn't
> > really worth enough to cover the amount owed.  And, according to
> > him, the bank could actually sue him (the valuer) for a sort of
> > malpractice.
>
> True, but with the market the way it is and the likelihood that even if
> the buyer does default it won't be for 6-12 months. There isn't much to
> hold him to.
>
> I'm curious how many appraisers have been sued by banks and what was the
> result.

Thank you guys!!! I have one more question though. I do have a PMI,
since I put only 5% down and talked to bank who said they take off the
PMI within a year under the exceptional case where a structure is
added to home.  It qualifies as significant addition and if the
appraisal causes the value to go higher than the 20% of the mortgage
the PMI comes of.

So my question is how this is factored into the appraisal.
The bank appraisal now, did the total appraised cost ( land +
building) / total living square feet
Though I think it should have been Total Building value / total living
square feet

Thanks