Terribly Low VA Appraisal VS. Independent Appraisal

[Jacob Hince]

Hey everyone! First & foremost I'd like to thank BiggerPockets & all the members on this site for the plethora of knowledge & wisdom I've dove into the past couple years & utilized in my real estate endeavors. So thank you!

Here is kind of a brief rundown of the current situation: I flipped a home recently in a nice neighborhood in Ottawa, IL. Upon nearing completion, I had it appraised since I was kind of sweating about the value of the home & let others get into my head about list price/value of property. (Friends, neighbors, etc that have not been in the real estate market) It appraised out for 198k which I thought was fantastic, so I listed the home for 199,900. Eventually I found a buyer & had it under contract for 185k with me paying closing costs. The buyer is utilizing a VA loan, therefore the inspection & appraisal were completed by a VA appraiser. It was to my surprise that the appraisal came back at 150k which in my mind is astounding/borderline incompetent. Now I'm kind of in limbo trying to figure out what to do. I've spoken with other successful real estate investors in the area/brokerage owners & they all say that particular appraiser is a "power freak that loves killing deals". I've also spoken to a mortgage broker friend that called the VA association and they state that VA appraisal is attached to that property for 6 months minimum. I've yet to call the buyer's lender to plead my case or fill out any "Tidewater Initiative" paperwork.

Please help! Selling at 150k would net me a sizeable loss. 

[Russell Brazil]

Just put it back on the market and dont take offers from VA borrowers. No big deal.