This appraisal is wrecking my life!!

**abvavgjoe** · 03-19-2009, 10:56 PM

I'm trying to sell a 1 bed condo in San Diego to move to FL. I found a buyer and we agreed on a sales price of $154K with me paying his $6000 closing cost. He's borrowing from the VA.

Now, 11 days before closing, the appraisal comes in at $137K. $17K low! First of all, I freak.

I've already been assured by my realtor that the deal will close on the 30th. My wife quit her job. I rented a U-haul. We were already gone in our minds.

That's bad enough, but my agent tells me that appraisal will stick for 130 days or something. So I can't sell the property for more than $131K with no concesions to other buyers.

2 questions.

Is he correct?

If an appraisal is based on past sales prices and the most you can sell the property for is the value indicated in the appraisal, how can sales prices ever go up? It would seem that if you are not allowed to pay more than what properties nearby have sold for recently prices would be doomed to stay the same or go down forever.

Somebody please tell me I'm not as screwed as it looks like I am.

**Greg** · 03-20-2009, 05:44 AM

You agent was wrong to tell you the sale will close before the loan was in place. These days, there are no guarantees until you have your check in your hand.

If you find a new buyer their lender will require a new appraisal. The old appraisal means nothing. The problem here is the next appraisal might come in lower or it might come in higher.

What your agent needs to do now is get a copy of the appraisal and check to see if the comparable sales used are correct. I had an appraisal come in low where the appraiser never got out of the car, they used the wrong comps, and they did not know anything about the amenities in the neighborhood. The listing agent helped the appraiser fix their mistake and the loan closed.

Inquire as to whether the lender will allow you to pay for another appraisal.

**abvavgjoe** · 03-21-2009, 09:39 AM

I told my broker due to the lower appraisal I would split the difference. Lower the sales price by half the difference. The buyer is trying to raise the extra cash.

However, I also suggested that we ask the lender if we can have a 2nd appraisal done.

**jamesww** · 03-21-2009, 05:11 PM

Please let me know if you get approval for a second opinion on the appraisal side. I have been hearing that there is no second guessing the appraisal. It use to be if an apprasier came in low and used less than perfect comps. you could order a second appraisal and a field review to still get the deal done.

**abvavgjoe** · 03-24-2009, 07:03 PM

Well, I guess I'm officially screwed. They wouldn't go for a second appraisal and the buyer can't or won't raise any more cash for the deal. I was originally supposed to pay the buyers closing costs. They let me out of that ($6000). Also, my agent reduced his commision and got some of the closing costs reduced (total $1000). In the end the low appraisal cost me $10,000. It's really aggravating in several ways.

First of all, the definition of what something is worth is what someone is willing to pay for it. The appraiser is trying to disprove this with his appraisal. Needless to say, I disagree strongly.

The appraiser made some questionable adjustments. The worst was adjusting 1 comp down 8 1/2% ($12,800) because it was 4 months old.

HEH!??? He adjusted another comp down 5 1/2% ($8,600) because it was 3 months old. So he's saying the real estate market in San Diego has come down 8 1/2% since November. I don't think so.

Also, it aggravates me that the guy is willing to pay more , but the lender won't let him based on recent sales. Well, then how will prices ever go up?!

Theoretically, they could only go down. Not only that, but this will have an effect on others who will sell there condos in my complex soon. They'll have to use my property, which sold lower than it could have, to establish their asking and sales prices.

This has cost me like 18% of what I should have netted on the deal. Not the best start for a move across the country.