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AVM appraisal could derail the deal: agreed purchase price and first appraisal $201,000

Profile picture for granite32
then the lender did an AVM which came in at $175,000 and ordered a 2nd appraisal. If the 2nd appraisal still comes in much lower, what are my options? The issue is no good comps. Seeking conventional mortgage with 20% down and don't have cash to make up the difference. Thanks
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November 29 2011 - La Porte
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Answers (4)

Profile picture for JamesRPetersSr
you ever get this resolved?
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January 05
Why do you want to pay $201,000 for a property that is worth $175,000. Do I understand correctly that you would prefer that they not verify the value and you are content with paying $26,000 too much? If that is the case, I have a house I would like to sell you for $26,000 too much and I'll do owner financing for you with 20% down so you won't need an appraisal. Contact me if you are interested. 
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November 29 2011
Profile picture for Zilluminati
I wonder where they got they AVM. I hope it wasn't a Zestimate.

It seems sort of bogus to review, or justify, or double check, an appraisal by pulling an AVM. The file usually requires one, or the other, and possibly a human review of the actual appraisal, by either an underwriter, or another appraiser.

Who is the Lender?
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November 29 2011
Profile picture for therealtorguy
Sometimes lenders pick an appraiser from a "pool" of appraisers. They might pull an appraiser from another county with no knowledge of your local market.

Request that the appraiser is from the area where the house is located and that the appraiser has access to the local mls to pull comps. You might also request that your agent hand deliver comps to the appraiser.

Good luck!
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November 29 2011
 

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