Duplex under-appraised (20k)! Trying to buy. Now what??

[Nicholas Morgan]

Hello everyone. 

I found a nice duplex that my fiancee and I love. We were really looking forward to moving into after we're married in ~6w. 

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Mortgage company did an appraisal and it appraised for 92k and we have it under contract for 112k. 

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What do we do now? I don't have the financials to bring 20k to the table. I'm purchasing it with 3.5% down thru an FHA loan.

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I'm not 100% sure the appraisal is an accurate representation. Another duplex near sold for 136k this month near it which equates to $74.73/sq.ft.  At our price we agreed to, it's $80/sq.ft. which is more expensive. However, if we analyze our property at that rate that yields a purchase price of ~$105k....not $92k. 

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The seller bought this property for $99k in 2002 (or 2004...I dont recall which one).

Any thoughts on how to proceed? I requested a new purchase price of 92k. He declined (as expected). 

Thanks in advance,

Nicholas 

[Jason D.]

@Dave Passey its FHA, he cant get a second appraisal. The new lender will still use the original appraisal.