What Is Going On With Appraisals In Metro Atlanta?
I have an investor client trying to purchase a town home in a subdivison in the city of Lawerenceville. We were under contract on one of the units at $135,000. The appraisal came back at $120,000 on October 27th. So we terminate the deal as neither buyer nor seller will make up the $15,000 difference.
We immediately contract on another town home a block away in the same subdivision. This one is a little smaller in square footage but still comparable. We contract at $125,000. The listing agent feels certain that the appraisal will not be a problem. She has studied the market and has the comparables that work for our deal. She agrees to meet the appraiser, and she follows through.
On this second contract, the appraisal comes back at $82,000. I am thoroughly baffled with appraisers these days. How do you come back with an appraisal that is $38,000 different from the previous one? It just does not make ANY sense....
I have had great success with appraisals this year, but this situation makes me wonder about the future. Weighing the two appraisals in the same subdivision, the results suggest that values in the subdivision have dropped 46% in less than thirty days. Does that make any sense?
The lender is still trying to understand the outcome and is asking for senior management intervention. Hopefully we get a different decision and some common sense.
Vent over....
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