VA appraisal came in low

[Lon Williford]

Once a VA appraisal has been done and it comes in very low which kills the contract for a couple that couldn't afford to put any money down, should we still allow VA loans even though we feel the appraisal came in way low?

[Charlie MacPherson]

@Lon Williford A low VA appraisal should cause the appraiser to trigger the Tidewater clause, allowing all concerned 48 hours to show the appraiser why they should raise the appraised amount.

I did this several weeks ago with an unusual property.  It started life as a Campanelli Ranch (cookie cutter post-WWII ranches), but had an enormous (700 sf) second floor addition put on.  It was no longer a ranch, and where the average Campanelli has 1300 - 1600 sf, we were a little over 2,600 sf with a 2 car garage to boot.

We were under contract at $372,000.  The appraisal came in at $330,000 - I was astonished.

I rebutted the appraisal with solid comps supporting $372,000 and saved the deal by getting the appraisal increased by $15,000 to $345,000.

BTW - if you want to absolutely demolish your own reputation, then tell our military veterans that they can not use VA financing to buy your property.

I know VA loans carry a bit more friction for us, but it's nothing compared to getting shot at in the mountains of Afghanistan. I think we owe veterans the extra work.