Residential Real Estate Agent · Ocala, FL · Member since 2009 · 255 posts · 65 votes
Currently have 2 appraisals (one when i purchased the property) showing a 140k+ value. Buyer has a contract at 140k with heavy seller concessions. The first appraisal came back with a 145k value. Because the property is a flip and within the first 90 day window the lender required a 2nd appraisal. The 2nd appraisal came back (on the day of closing no less) at 125k.
Now normally, i wouldn't be so annoyed. But this house is a 2100 sqft 4/2 in move in shape. A house 7 doors down, in same quality/age/shape but only 1600 sqft sold less than 90 days ago for 133,500. What kills me is the entire appraisal looks like he was trying for a low value.
What are my options besides lowering the sales price 15k. The buyer has no extra funds to pull from. Lender wants to dispute the appraisal (which is fine), but i'm thinking i need other options.....helllllpppppp!!!! :)
well it really depends on the timeframe that you are working with and how credible your buyer is.
1- shorter timeframe - challenge the second appraisal
2- longer timeframe - resubmit the loan through a different lender, since its FHA they can still use the first appraisal, and then you order another second appraisal.....
Appraisal is not an exact science, more than often it depends on the appraiser that you get.