Low appraisal prevents mortgage loan

[Katrin Willoughby]

After month of research and a few months of looking we thought we found a good property.  A 1000 square foot home in good condition on a half acre that would give us the option to add a second home in the future.  Our inspector agreed that it is move in ready! Everything was going well and our closing date was set.  Then the appraisal came back at 60% of the value we had a contract for. The near by half acre lots are for sale for the same amount without a home! We have appealed once with no success.  They are letting us appeal again, but if there is not a significanlty increase in the apprasial value there is nothing else we can do with this mortgage company. We have asked about having another appraser, but they said to get another appraisal we would have to go start with another mortgage comanpy. If this appeal does not turn out there is nothing else they can do. 

Of course I am concerned about going through everything again just to end up with another low apprasal. I think the current apprasal is exteremely low and am highly surpried of it given the good condition of the house. I think the contract we have written is a resonable value for the home and property.

Any one else had this issue or have advice?