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Filipe Pereira
Pro Member
  • Property Manager
  • Windsor Locks, CT
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"bank will not accept the current appraisal"....uh, what?!

Filipe Pereira
Pro Member
  • Property Manager
  • Windsor Locks, CT
Posted Aug 2 2016, 15:49

Long story short, really struggling to close on this property in Connecticut. I'm pretty sure that most things that could come up, HAVE come up, or will be coming up soon. LOL.

Here it is: Seller and I agreed to purchase price of 205. Appraisal came in at 180K. We settle at 200, and I agree to pay the 20K out of pocket.
The bank says "OK, that's fine, but we will only finance the 180".
Me: "Cool, no problemo"

Bank today: "So uh, yeah...that appraisal? The underwriter didn't accept it. It has too many mistakes in it".
Me: "What do you mean too many mistakes? You guys chose the appraisal company (a highly insured one, at that), and I paid big bucks for it...What do you mean it's not good enough?"

....So now they are ordering a 2nd appraisal, and they are paying for it. 

Now...the fun part. I'm no genius (this is my first REI deal), but something tells me they either
A) Thought the comps were way off. (Good luck to the new appraiser, because there are no decent comps in the area)
or
B) They are afraid it appraised too high, and want the second appraisal to come in lower, thus making me pay even more out of pocket. 

Does anyone have any other suggestions or advice regarding the situation? Have you faced something similar? 

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