After showing my client 80 townhouses over the past year, he and his family finally decided to buy the perfect townhouse. All parties agreed to the purchase price of $470,000 and the contract was executed with a clossing date of October 19, 2009! The buyer has 20% down and is a solid candidate for bank financing...no problem there!
Then, comes the appraiser....he came in with an appraisal of $330,000 and it was very difficult to understand why he used the comps he did. Naturally, once the bank saw this appraisal, they decided NOT to lend. Here comes bank No. 2--the appraiser comes in, within one week from the 1st appraiser, with an appraised value of $516,000. No. 2 bank says, "whew, this may be too high?" Remember, Bank No. 2 was NOT aware of appraisal No. 1.
So the second appraiser was given a chance to revise the appraisal, which he did. Now, we had an appraisal at $487,000. However, Bank No. 2 still was not sure of the true value. So, Bank No. 2 said, "let's do another appraisal."
We were set to close on October 19, which will now NOT happen--and Bank No. 2 still has not sent out an appraiser for the property as of today.
Can you believe the difference in the appraisals? What are the appraisers thinking? Now, we try to wait patiently for the appraisal issue to resolve. Meanwhile, my client is ready to move in his family and the seller is ready to move on, but we must await while trying to ascertain the true value....What next?
Comments(9)