Utah Duplex Appraisal Way Off - Need advice!

[Jay Gordet]

Dear Real Estate Investors,

There is a lovely 3200 sqft. duplex for sale in Lehi, Utah currently renting below market value at $1200 per unit.  3 bed 2 bath per side (one unfinished bonus room per side too).  The listing price was $650,000 the appraisal came back at $510,000!?!?!  The duplex is rare as it was built in 1996 and the closet comp came in at 27 years older and 800 square feet smaller.   We have $10,000 in earnest money that is now not refundable...but 10k is sure a lot less that the staggering $140,000 appraisal difference.  I have never seen an appraisal value come in this far off.  Any thoughts on this?  What would you do? Buy or walk?  

[Brady Hanks]

@Jay Gordet Ask for a second appraisal from a different appraiser. Or potentially a different lending institution that uses a different appraiser. You might have to pay extra for a second appraisal, but worth it at this point. I would have your lender order it to make sure they can use that the appraisal can be used against the loan. If a second appraisal comes back low you can try to renegotiate the deal.