For Want of a Good Appraisal the Buyer Was Stymied

For Want of a Good Appraisal the Buyer Was Stymied

I have a buyer that has been trying for months to find the perfect.  Back in late December it appeared that the real estate gods were in alignment as a condo came on market that offered all she needed and wanted and was close to family for here.

We made an offer and within a day it was accepted.  She had perfect credit and with a conventional loan and 20% down should have been a slam dunk for all.

And Then Came the Appraisal

I had the property priced slightly above offering so I felt very comfortable.  I was not the listing agent, however.

When the appraisal came back, it was $20,000 below contract price and $25,000 below the value I felt was right.  The sellers were incensed and as they had complied with the inspection requests were adamant that they would not go any lower. Also, the buyer was not going to offer more money to help the appraisal.

I appealed the appraisal as I wanted to help all, especially as the appraiser, who was from out of area had used 2 values within the appraisal that were from another town almost 8 miles away and had also ignored a comparable within the complex that he felt was too upgraded to be of value. He was also using a comparable that was 9 months old and also in another town. His adjusted appraisal came back $8,000 higher but still well out of range to make this work.

With both sides so far apart it was going no place so termination was executed and my buyer will have to look again.

We all like to consider ourselves professionals, but in this case, which was the first time in my experiences that I had to lose a deal for a bad appraisal, the person that got paid to appraise this property is far from a professional and I have asked the loan officer to make sure it is noted with the company that hired that man to do the appraisal.

For Want of a Good Appraisal the Buyer Was Stymied