Killed deal because of appraisal

[Roger G.]

I was selling my flip property for $199k I had the property appraised at $205k. Once I had the property in contract with an FHA buyer, the bank sent an appraiser and she came in at $185k In her appraisal she wrote that part of the house (the bathroom) was not done with permits and no permits were on file at the city. However in the county records show the exact square footage that the house is. I never added anything just upgraded. She even states that the work was completed in "good workman-like" manner. She recommended that a licensed contractor inspect the bathroom. However as soon as the lender read what she had wrote they basically refused to move forward even with the letter from the contractor, stating that the bathroom was up to code. Which the buyers had paid for. Everyone wanted this deal to go through but the appraiser killed the deal for everyone. Now my house is back on the market and the buyers are basically homeless. All because of an appraiser's wording in her report. Feeling frustrated with FHA loans and appraisers

[Guy Gimenez]

@Roger G.

This is one of the many reasons I stopped considering FHA / VA / USDA offers on my flips. It's either cash or conventionally financed buyers. I know others will disagree, but this system has worked for me since 2009 when I made the change.