How We Contested A Low Appraisal In Memphis With Success
Thought I would share a success story regarding getting an appraised value adjusted with success. With the amount of homes we sell every year, occasionally we run across a situation where the appraised valued comes in much lower then the actual sale price. Usually when this happens it is bc the investor wanted to use their own lender who is not one of our preferred lenders. Usually it comes in low, then have the client switch to our lender, the appraised value then comes back in like it should and all is well.
In this case our client was using our preferred lender. The home sale price was $99,900 and there are legit comps that should prove a value of minimum $100k-$110k. Well the appraisal came back at $86k. Keep in mind we spent $23,000 in rehab, just about everything was new in this home. Normally when the value is this low ( which is rare ) the deal would be dead.
Our investor buyer was very upset at the appraiser and felt they made a huge error. Our client filed a complaint with the BBB and would you believe that within 2 weeks the appraiser had a change of heart and re-adjusted the value to $99,900 !!
This is a first for us as we have never had an appraiser adjust their price which admits they were wrong. So if you ever buy a home and the appraised value comes back in very low ( make sure to verify with other legit comps that the home is worth what you are contracted to buy it for ) you could file a BBB complaint and possibly get the value corrected.
