When planning to purchase a property, you have every right to worry about real estate appraisal fraud. This is a serious issue that can cost homebuyers thousands of dollars.
Knowing whether an appraisal is fake early on could spare you financial losses and potential legal battles.
Common signs of real estate appraisal fraud
An appraiser who purposely misrepresents the property’s value is committing appraisal fraud. This means they intend to deceive or mislead buyers into purchasing the property. Common tactics can include:
- Inflating a property’s worth to secure higher loans.
- Selecting only high-value properties for comparison, ignoring more relevant ones.
- Falsely claiming upgrades or amenities that do not exist.
- Hiding issues like nearby foreclosures or environmental hazards.
- Relying on old market information to justify higher values.
In Florida, appraisal fraud is a serious offense. The Florida Real Estate Appraisal Board can investigate appraisers who violate the strict standards of professional practice. If found guilty, they may face severe penalties, including fines, license suspension or revocation.
Protection from fraud necessitates a proactive approach
You have the right to request a copy of the appraisal report when buying a property. Review it carefully for any discrepancies or red flags.
If you suspect fraud, it is best to talk to a real estate attorney. They can address your doubts or concerns about the appraisal process, review the documents and advise you on how to proceed. This way, you can make an informed purchase and acquire the real estate you deserve.
