Appraisal Came in Very, Very Low!

[Account Closed]

I put several duplexes on the market through a real estate agent for roughly $190K. We didn't pluck this number out of thin air. There was another property that had sold on the street a few properties away for $190K.....although it was a single family home. Same basic building structure, his was SFH, mine were duplexes. So, 2 days after they were placed on the market, we sold the first one around $190K. Then we sell 2 more in the 1-2 weeks also for $190K. So at this point they all show as pending in the MLS. The other day the appraiser for the first one comes out. He appraises the property for $125K. BTW, this is an FHA loan, people wanting to do a house hack. One of the other is an FHA as well, the third is conventional loan. So obviously, the $125K is a problem. My agent has submitted a rebuttal on the appraisal to the lender.

Anyone with suggestions as to how to approach this?  Frankly a 30% difference between an appraisal and 3 independent sales seems like the appraiser is ignoring the market.

[Chris Mason]

EDIT: File this post in the "things you need to hear" bin, not in the "things you want to hear" bin. And this is my $0.02, feel free to toss it in the trash and do your own thing!

Three things:

• Appraisers can't compare SFRs to duplexes any more than they can compare duplexes to space ships. It could not be more irrelevant what SFRs go for, period. 
• You should be focused on "setting the comps" the way builders do, and selling them one at a time with a step-up in sales price each time (just like builders do), not all at once. 
• Supply and demand... you put too much supply out there all at once. Why would you as a seller create what appears to be a fire sale of duplexes in the area????!!!! This is clinical insanity. 

I would cancel all of these listings, do my homework, and try again once I'm actually ready. 

The appraisers aren't the only ones "ignoring the market." Take that hand you have pointed at the appraisers, and note that 3 of those fingers - one per duplex - are pointed right back at you.

Good luck.