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Updated about 3 years ago,
HELP! Appraisal problems are killing my deal!
Okay, so Ive been battling it out making offers and final got one accepted. Everything is going smoothly and the numbers look great. I just received a email from my lender saying things are awesome and we are set to close in two weeks pending the appraisal comes back normal. No one thought there would be an appraisal problem due to the comps in the area and increasing market values. For context the house is a 3/2 located in Southaven MS. Asking price was 169k and we got it under contract at 176k and covering some of their closing costs. Then the appraisal comes in late last night.... 146k. 30k under contract price!!! My agent and I immediately pulled our own comps and created a packet to submit to the lender to dispute the appraisal They accepted the packet and now we wait to hear if the appraiser will adjust it. 30k is to much for me to put down to cover the gap between agreed price and appraisal so now I'm not sure what to do. The appraiser pulled comps from the spring (lower market values) and used homes that are in less desirable neighborhoods because "he couldn't find anything else". He also used the rent to value ratio and used a rent valuation that was about $500 a month under what it should be. His numbers are $1100x128= around 141K and my numbers using his same appraisal method are $1600x128= 204K. So both of his appraisal methods seem to be way off in my opinion. To make matters worse an identical home listed this morning in the same neghborhood for 165k so I know I'm at least close to the right price and the appraiser is way off. I'm pretty new at this and its only my second investment property so I'm reaching out to the brightest group I know to see if anyone has any suggestions.
Thanks everyone!