Appraisal came in $33k low what are options?

[David McClain]

Hey there! Question about home appraisals and what to do when your selling price doesn’t match the buyers loan appraisal

I’m selling a house I rehabbed. Did the deal and rehab all in cash. Had an offer within 24 hours and purchase agreement made out for $240k. I did a contingency with the buyer allowing her to sell her home first. That happened and she is closing on September 11. The appraisal happened yesterday and the buyer’s loan officer called her and said they won’t have it back for a week because it’s with the underwriter but that he saw the number and it was $207k. The buyer said she can go to $215k.

I told her I’m not canceling the deal on this phone call but my initial response is that the price is $240k. Comps show about 215-225, but there isn’t a true apples to apples comp in the county.

Can I ask for a reappraisal? Any chance the underwriter approves a $240k purchase price? Do I carry a note on the difference? What will carrying a note for $25k do to her ability to get her mortgage?

Cheers!

[Jay Hinrichs]

if she is getting an FHA loan that appraisal is now in the system I think for 6 months.. going to be hard to get a non conventional loan buyer to come up.. they usually dont have the money even if they wanted to.. and seller carry back seconds are tricky.. most lenders will balk at those.. there are times were you can over improve a property.