Ok, so here is the latest appraisal issue, I need some feedback here. We have a house that we purchased about three months ago and fully renovated. Our buyer was excited about the property and offered full price: $75,000. The buyer went to a local big box lender and submitted a loan application and paid the app fees and appraisal fee. The appraisal comes back at $58k. We were all shocked!! Turns out the appraiser used amongst other comps, a foreclosure that had termites, wood rot and a bay window that was falling out! This property sold to an investor for $30k. Keep in mind our house has new paint, carpet, laminate, stainless appliances, new doors, etc., etc, etc.! A retail property.
Now, here is the real issue. Within days of the appraiser submitting the appraisal to the bank, that $30k house SOLD for $70,000! Of course, because it was repaired and sold retail, just like we are trying to do!!
We promptly contacted the lender to submit this info; we had written proof of the sale and were told that we were creating "undue influence" by even suggesting the appraiser review the work!! I was floored at this point!
We are not asking for new comps, just ACCURATE ones!
But here is my real point: who paid for this appraisal? the bank? NO, the BUYER! Is it accurate? NO. Should the buyer have the right to an accurate appraisal if the buyer paid for it? I think so, what do you think?
We have an alternate creative way to finance this deal now and don't need the bank anymore, but I believe that the bank should require the appraiser to adjust the appraisal to reflect accurate information or refund the appraisal fee!! Am I wrong in thinking this way? Also I am not suggesting that the appraiser did anything wrong, but if the info is wrong, fix it!
Thanks in advance for your feedback!