So an investment property is listed for 150k. This property was appraised at 150k, the bank issued out a second appraisal. This appraisal came in at 130k , this is not beneficial to the deal. The bank threw out the 150k appraisal and stuck with the 130k appraisal. So of course we challenged this but the bank stuck firmly with the 130k appraisal. I’m not sure how that works , why it works like that and what can be done about this if anything?

If you think the property is worth 150k, then you should talk to the bank and tell them exactly why. The bank is wanting a trusted opinion on the property value so they use a particular appraiser. They sometimes miss things and you can inform them. Sometimes the bank will let you speak with the appraiser. Be friendly and tell them why you think it is worth more. 

@Greg Maddox

Maybe find another lender.

@Greg Maddox did the bank order the first appraisal? Because the bank has to order the appraisal and can not accept an appraisal provided by an outside party. If that’s the case, the bank will need to trust the appraisal they ordered unless shown that it is inaccurate. So they are “correct” to go with the $130k amount until proven otherwise.

If the bank did order the first appraisal then you should question them about why they ordered the second one. They should not order 2 appraisals unless there is an issue with the first one.

@Corey Hawkinson thank you, I’m really unsure why the second appraisal was issued. Everything went through an agent. So there was never direct contact with the lender. I would think the bank would average the two numbers, not completely disregard the better number.

@Benjamin Aaker thank you for the advice, this deal went through an agent there was no direct contact with the lender. The buyer really wanted the home, the lender just would not budge.

I thought appraisal stuck with the property for 3 months or something like that

maybe well ask the bank why they ordered a second appraisal?

@Michael Plante yea didn’t completely make sense to me! The same bank issued two separate appraisals and decided to stick with the one 20k less. It’s almost like there is nothing you can do about it . The scary part is that appraisal will stick with the property that my cause issues on the next appraisal...

Good part is a property just sold less then 1000 feet away for 145k, hopefully that helps.