USDA home didn’t appraise - how to resolve this

3 Replies

Hey there, I am a realtor in Florida working a USDA deal and found out it didn’t appraise. After reviewing the comps I could see why it appraised so low. Sellers will not negotiate because they know the house is worth more than the contract price and my buyers do not have the funds to make up the difference. I have sent the loan officer other comps, who sent them to the underwriter and there seems to be no change. My question is, is there another angle that I can approach this? Thank you.

@Justin Cothran your best bet it to start with a new lender.  The chances of the appraiser increasing the value are very slim.  Some of my lenders offer me valuation estimates and I would be happy to send you a print out of the results.  

@Justin Cothran it sounds like you looked at the comps and can see why the house didn't appraise. My thoughts are, it probably won't appraise no matter who you use. You can try another lender, but I imagine you are rolling the dice with that one appraising it. 

Can your buyer use a different loan type to move forward?  Some states have 0-down loan programs if buyers take a class and some lenders now offer 3% grant programs.  Were you at the appraisal with a packet of info with the comps you used?  I always ask to be at the appraisal, as listing or selling agent, and I bring a packet of information for the appraiser that has all the information supporting our price, the comps used, tax records, an independent appraisal if the seller has one and will give you a copy, etc., receipts of recent expensive improvements,  like new heat system or windows, anything that supports the value.   The only times I've had an appraisal come back too low is when I wasn't there at the appraisal and didn't leave a packet with the data we used to get to our price.  

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