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Replies (5)
- Jim Stevenson, "therealtorguy"
- Contributions:1081
Have your agent request another appraisal from a local appraiser that has access to the local mls service. Your agent might want to pull comps to present to the appraiser at the time of appraisal.
- Vince Curtis, "SoCal Appraiser"
- Contributions:4470
Yes, you can challenge it. Put YOUR agent to work and get the comps for the value, thats what he/she is getting their commission for.
And as Jim suggests, make sure the appraiser IS local. Here is a directory of all licensed appraisers.
https://www.asc.gov/National-Registry/FindAnAppraiser.aspx
On the other side, maybe you are simply offering too much, another job for YOUR agent.
Or you may just need to go with another lender, this one may be using poor appraisers OR too conservative.
And as Jim suggests, make sure the appraiser IS local. Here is a directory of all licensed appraisers.
https://www.asc.gov/National-Registry/FindAnAppraiser.aspx
On the other side, maybe you are simply offering too much, another job for YOUR agent.
Or you may just need to go with another lender, this one may be using poor appraisers OR too conservative.
- Maria Teitleman, "mteitleman"
- Contributions:6
You can certainly challenge it and it will require work on your agent's part to provide comps to prove otherwise but it may not be easy. It's the lenders call as to what the value of a property is. In this current market driven by foreclosures, appraisals are coming in lower and lower and this is what is hurting sellers. When you listed you should have been provided with a CMA from your listing agent which clearly showed where the numbers were in your area and periodically throughout the listing your agent should recheck the comps so all of you keep aware of the current trends in your area. I sometimes have client's who insist on listing their property higher than the comps I provide but they are fully aware of the statistics and they are prepared to deal with the reality of the appraisal. If your list price was really in line with the actual statistics then you are dealing with a bad appraisal. If your list price was not, then your Realtor should have explained all of this to you so you know what your options are. I recently had a house which was listed for more than it could actually appraise but had unusual amenities, like a private pond and dock and acreage. The buyers were putting down enough money that the loan they were getting could easily appraise so there was no problem. This is all information that should be available right at the outset of an offer. Sometimes, realtors are not honest and upfront enough and avoid explaining these things, hoping that when the time comes you will just be forced to accept the lower price. If you listed for significantly higher than the going price in your area then the only offer you can take is one where the buyer can absorb the additional cost or you can owner finance the difference. Your Realtor should be able to clearly answer what the reality of your current situation is.
- Norm D Plume, "America Needs Nixon!"
- Contributions:1500
No, as the seller you are not the client.
- Debra (Debbie) Rose, "Livingston NJ"
- Contributions:2590
At this point it's really not so much what you can do, but what the buyers want to do.
You can't force them to buy the home even if you have a new appraisal done that comes in higher.
Thy have a right to walk away based on the first appraisal, as they cannot be approved for the mortgage with a $20,000 deficit based on the sale price.
Unless you can find factual errors in the appraisal (wrong room count, incorrect sq footage, etc) you will most likely get nowhere with the bank or a new appraisal...and it's really not your decision to make.
The buyers will be less inclined to move forward with an offer that was not backed up by the first appraisal....the doubt as to value has already been planted........either the buyers willingly make up the difference, or agree to split the difference with you........or.......... you agree to lower your sale price to coincide with the appraisal.
You really need to rethink your list price, and expectations, as you may be in the very same position with a new buyer if you lose this one.
By the way - someone suggested that you "might just need to go with a new lender:".....frankly, that's the buyer's decision, not yours. You're not part of the buyer's mortgage process.
Best wishes........
You can't force them to buy the home even if you have a new appraisal done that comes in higher.
Thy have a right to walk away based on the first appraisal, as they cannot be approved for the mortgage with a $20,000 deficit based on the sale price.
Unless you can find factual errors in the appraisal (wrong room count, incorrect sq footage, etc) you will most likely get nowhere with the bank or a new appraisal...and it's really not your decision to make.
The buyers will be less inclined to move forward with an offer that was not backed up by the first appraisal....the doubt as to value has already been planted........either the buyers willingly make up the difference, or agree to split the difference with you........or.......... you agree to lower your sale price to coincide with the appraisal.
You really need to rethink your list price, and expectations, as you may be in the very same position with a new buyer if you lose this one.
By the way - someone suggested that you "might just need to go with a new lender:".....frankly, that's the buyer's decision, not yours. You're not part of the buyer's mortgage process.
Best wishes........
Appraisal Came in lower by about 20k can we challenge it ?
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