In aug 2004 I bought a house in Louisiana - at the time we purchased the house the sellers showed us an appraisal that showed 2469 sq. ft at a value of 243,000 - we used the same appraiser to give us an updated appraisal at the time of financing - the new appraisal showed 2469 sq. ft and a value of 246,000. In April we put our house on the market, got an offer, and through the buyers appraiser we found out that the original square footage was wrong - by 300 square feet - the bottom line is that the house was overvalued when we bought it by approximately 30,000. Our original appraiser has admitted his error after going back to the house and measuring - I tried to negotiate damages - we couldn't come to an agreement - so I have filed a claim with his errors and omissions insurance - anyone know what I can expect??? I have been told that my claim has been forwarded to claims counsel but I am waiting for them to contact me. does anyone have any experience with this? Thanks - we are obviously distressed by the 30,000 error!

Well it depends on the market, and the value of the error and its impact on you. Also, was there reliance on this appraisal since most lenders usually check the proeprty records and automated appraisal models, so this error may not have been one that was relied on to harm you in any way. You will have to wait and see, but this may be a non-compensable mistake depending on the total circumstances.