Super lowball appraisal in Philly...$95,000 below price.

[Paul Ortiz]

I'm selling a home in Philly, PA and the appraisal came back a hundred grand less then the contract price. The place is completely remodeled (tastefully), finished basement with full bath & wet bar, everything has been upgraded (like new construction).  It's immaculate with upgraded finishes.  The appraiser literally spent 5 mins in the property, didn't even turn the lights on.  Then called my agent and asked for supporting comps.  He was sent a two week old comp at $325.  That comp was outdated, no upgrades and in need complete remodeling to bring it up to the level of my place.  He was also sent an extensive list of all the upgrades made to my place.  He came back with the price being 5 grand lower than that comp! I literally laughed when I heard his price...then I cried!  The row next to me sold in 2017 for $330 and had a contractor grade renovation and not nearly all the upgrades as this.  

I googled the appraiser and it turns out he has a bunch of bad reviews claiming he's done this numerous times before.  I only wish I had know before hand so I could request they use someone else.  

This deal will head south fast if I can't come up with some support that is appraisal is flawed or convince the buyers to go with another lender.   I've asked my agent to tell the buyers agent I won't negotiate at that number, until we review the appraisal report.  

Someone mentioned to me "holding the paper" on the home and getting the cash later from the buyer.  I'm not sure what that is just yet and if it's a viable option.  

So we're waiting for the report.  In the meantime, can anyone offer some any advice?  

I this deal dead?   

Thanks.. 

[Jaysen Medhurst]

@Paul Ortiz, you could pay for your own appraisal to get an independent POV. The buyer should speak with their lender as well and express their displeasure. $100k is a huge gap, but if the comps are in the $325k range and you're trying to get $425, that may not fly with any appraiser.