Has This Happened to You?

[Shari Lawson]

I purchased a property in San Antonio, updated it and rented it out. All records stated that the property was 1470sq ft and I was paying property taxes based on a 1470sq ft house. The house was appraised at the time of purchase and the ARV was $116K.

We recently put it on the market to sell. Under contract for $135k.

The buyer’s appraiser says the house is not 1470sq ft , it is only 1270sq ft and appraised it at $126K. The buyers bank would loan them no more than $126k.

How could this 30 something year old house not have been accurately measured all this time!? 200 sq ft could not have magically vanished. And I was paying property taxes based on a higher sq ft amount!

Has this or something similar happened to someone else? How did you handle it?

(I must add- Yes, the final appraisal was higher than my initial ARV, but that's not the point. Numbers-Purchase price $65K+Reno/closing/holding costs $22K. Hard money then refi so final loan at $88K. Coop at $13K. Sold for $126k)