Before our mortgage loan was approved, one of the upfront fees required by the lender, Plaza Funding, was for a property appraisal.  Plaza Funding then selected and paid an appraiser.  After we discovered the property had nondisclosed damages and defects, I contacted Plaza to see on what conditions of the property the appraiser had based his appraised value and on what conditions of the property Plaza had granted the loan.

Plaza sent a copy of the Property Appraisal, which was conducted August 21, 1991, by Dennis Kaiser of Kaiser and Associates.  Mr. Kaiser’s opinion of the property was basically what ours was -- that the air conditioner was in working condition and there was solar, but that the house needed extensive cleaning, paint, new drapes, and new carpets.  The appraisal, however, contained several inaccuracies, ranging from minor to major:

In the “Neighborhood Comments Section,” Mr. Kaiser wrote:

• This community is 30 miles north of Sacramento on Highways 99 and 65.  Highway 65 is in Yuba County and Placer County between Highways 70 and I-80 and is nowhere near this community which is in Sutter County.

• The subject property is located in the southerly section of this community.  The subject property is two miles WEST of Yuba City.

• The neighborhood boundries (sic) are as follows:  ...State Route 90 to the east.  Highway 99 is to the east.

• The subject property is located in a tract of custom built ranch style homes that appear to have been built in the early to mid 1950’s. The land was subdivided in August 1967, and the homes were built from 1971 to 1993.

• Homes in this area vary in size from 1900 to 2500 square feet and are on .9 to 1.9 acre sites.  The homes in this area are on 1.45 to 72 acre sites.  The three properties adjacent to ours are 2.44 acres, 72.00 acres, and 3.35 acres.  Our property is 1.45 acres.

• There is a producing almond orchard directly across the street from the subject.  There is a producing PLUM orchard directly across the street.

We later learned that the comparables Mr. Kaiser used were not comparables of our property:

• 640 South George Washington Boulevard is NOT two blocks south as Mr. Kaiser stated -- it is one mile south.  (Four bedrooms and 2,250 square feet.)

• 1427 Steward Road is not .5 miles southeast as Mr. Kaiser stated -- it is 4.5 miles southeast.  (Four bedrooms, three bathrooms, and 2,450 square feet.)

• 8661 South Butte Road is not one block east as Mr. Kaiser stated -- it is approximately 10 miles northwest near the town of Sutter.  (Four bedrooms, three bathrooms, and 2,400 square feet.)  The location shown on Mr. Kaiser’s location map is not 8661 South Butte Road -- it is the 400 block of Butte Avenue.

Judging by the above errors, the inaccurate diagram of the house, and the errors contained in his “Neighborhood Comments Section,” Mr. Kaiser must have been lost and appraised another house!

And surprise!  According to Mr. Kaiser’s appraisal, the house has 2,150 square feet -- not 2,500 as was advertised and represented in the MLS listing.