New York, NY · Member since 2017 · 36 posts · 1 vote
It’s a multifamily (3) property in NYC. The bank appraisal came back significantly lower. $1.125MM vs $1.3MM
Should this be a major concern?
The bank is going to lower the loan amount.. I can come up with the additional equity but I’d rather not.
I’ve done my homework and comps seem to justify the higher price. I plan to contest the appraisal with my comps. But I’m wondering if I’ve become blinded to this property.
Any advice or input would be great.
Real Estate Agent · Newport Beach, CA · Member since 2017 · 259 posts · 293 votes
8y
I might go back to the seller and negotiate with the seller. You might have an appraisal contingency that would really help with this.
If I'm the seller and comps seem to justify my price, I'm going to tell you to pound sand and either deal with it or I'll find someone else.
Most of the time, it's in the bank's best interest to give a slightly lower appraisal as it helps to minimize the bank's risk.
I think the reach question is that it's up to you and what your end goal with this particular property is. It's not an uncommon problem so you're not alone. Part of doing business in real estate.