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Dan Beaulieu
Pro Member
  • Lender
  • Knoxville, Tennessee (TN)
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422
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What to do when an appraisal comes back low when selling!!??

Dan Beaulieu
Pro Member
  • Lender
  • Knoxville, Tennessee (TN)
Posted Apr 4 2017, 16:40

Hi everybody and thanks in advance for answering my question! I have 24 hours to respond to the buyers so I hope somebody will provide me with some direction. I recently listed a rehabbed property for sale at 539,000. I had multiple offers ranging from 545,000 to 550,000 in the first 24 hours! I locked up an offer for 545,000 that could close in 3 weeks, and put two offers for 550,000 in backup position. The inspection went well, but the appraisal came back at only 515,000!!! The property is really unique and is hard to put a solid value on... but we went to the appraiser and said hey, here are multiple offers for 550,000 so that's what the market says the property is worth! Well, that didn't work very well obviously. So the buyers said they will come up with a cash difference but only up to 534,000 purchase price. There is 12 days until closing now. 

Do I say no way Jose and go with the backup offers, essentially starting a 30 day closing clock over, and risk the inspection not going as well and possibly another low appraisal? Or do I just take the very small profit at 534,000 and try not to be greedy? To wait an other month for an extra 15g when I have a guaranteed pay day in 12 days... (oh, and my holding costs are astronomical at 3,600 per month!)

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