Appraisal problem

Can't wait to see the answers to this one! I don't think that the mortgage companies around here would necessarily know that another appraisal was done. Interesting that you had so many offers that much over the appraisal price - unless the buyers are figuring that the appraisal will come in low and you will have to drop the price to match the appraisal? I would argue that the appraisal the siblings got was for estate purposes and not for the purpose of selling the property.

You should really ask your broker what is required on the appraisal.  It depends on what is in your contract or state law that determines if you are doing the right thing.  Sometimes a contract allows for a mediation in a disputed appraisal.

I guess I am a little confused.  You said you had an offer the day after listing at $199,000, yet they lowered the price to $164,500?  Why didn't they just take the first offer?  Was it that much lower?  Remember, the appraisal is just an estimate, just like any other estimate.  The real question is what is someone willing to PAY.

Michael,

The appraisal is not really "etched in stone" but it is an appraisers opinion of the value of the home BASED ON what other similar homes in the area are selling for.  If you got 5 other appraisers to do the same appraisal the values probably would not be the same, however they would be within a reasonable range.  If all the appraisers have access to all the same sales in the area the only difference would come from their knowledge of the market and experience. 

Brian says that the appraisal is "just an estimate", however, as I stated, it is a professionals estimate, based on sales data in the market.  Just because one person is willing to pay a certain amount does not mean it is worth that amount.  It is worth that amount to them, and if they have the CASH to pay for the home then they can buy it, however if they need a mortgage, then the appraisal will no doubt come back lower because it is based on what other homes are selling for.

In regards to the appraisal being available to the mortgage company, it is not.  The appraisal is the property of the person/company that ordered it.  If the family ordered it and kept it confidential, then nobody else would have access to it.  They can always ask more than what the appraisal came in at, however when and if it ever went under contract for more then an another appraisal would be done.  If no other relevant sales have occurred since the initial appraisal then it is most likely the appraisal would be very close to the original amount and the deal would be killed. 

I think you did the right thing in as much as you getting an appraisal to set the listing price.  If you do this, and it sells for around that price then value will probably not be a deal killer.

scope of work would have been appraisal for listing purposes, not estate purposes. OR the appraiser did not do a scope of work?? It would have been completed on a GP form, not for financing purposes. Users of the report should be clearly disclosed within the report. So, if the realtor or family want it disclosed they have the right to do so.

Anyway, get 10 appraisals of same property, will most likely get 10 "different" opinions. It s a known fact, appraisers just can't agree with each other!!! LOL