Thread: Seller wants a 2nd appraisal

If the second appraisal comes to high for "what you think it worths", you may go for a third appraisal which will makes null and void the first two.
It's usually done when the difference is too big. If it's not, better to negociate with the seller for a middle agreement.

the true value of a home is what somebody is willing to pay for it. the appraisal gives you an idea of what the competition is like, and what an "average" person might pay for that home.

if you really like the home, then it's certainly worth getting the second appraisal and comparing the two, and you should probably be able to negotiate the price down a little bit.

I would say try to negotiate in the middle before the sellers appraisal. Since you like the house much, you probably don't wanna go through all the crap.

It is really not up to you or the seller what the appraisal says. The bank has the last say as to what appraisal they will use to give you your loan. Without the loan you can walk, provided you have a loan contingency.

With the way banks are handling loans these days I am sure they will even consider an appraisal coming from the seller.

thanks for the replies. nobody addressed one concern i had though, agents and sellers "influencing" the appraiser they hire to come up with a higher value. is this an ethical issue alone, or is there a law against this practice? and what if the sellers appraisal comes in $20k higher than the lender's appraisal?
we WERE willing to pay the $212k, but when the appraisal came in at $193k everything changed. we realized we'd have a hard time selling, negative equity from day 1, etc, etc. just a bad idea paying more than a house is worth period.

I think regarding your concern you must hit the search engines, When I have some issues such as that google comes in handy.

Originally Posted by Racerx

thanks for the replies. nobody addressed one concern i had though, agents and sellers "influencing" the appraiser they hire to come up with a higher value. is this an ethical issue alone, or is there a law against this practice? and what if the sellers appraisal comes in $20k higher than the lender's appraisal?
we WERE willing to pay the $212k, but when the appraisal came in at $193k everything changed. we realized we'd have a hard time selling, negative equity from day 1, etc, etc. just a bad idea paying more than a house is worth period.

Be there for that appraiser and make people feel that influencing people is not the way to go...Follow the appraiser all the way to make sure the adverse party does not ask for a "we need a higher appraisal because we are the owners here"...kind of stuff...

No matter what the seller's appraisal came in at. That has no value. You must get your own appraisal, from your own bank.

Some lenders offer free appraisals and other incentives that could save you thousands at closing, if you choose them for your mortgage needs. They hire an appraiser and the value is based on other "comps" (comparable homes) in your area that have recently sold.

Your appraiser and your inspector are your only solid bargaining chips (unless you are a professional home evaluator yourself), so choose wisely.

I hope this helped. BTW - It is absolutely illegal for a seller to influence a higher appraisal or a buyer to influence a lower one. Ask your attorney about this, protecting your interest is what you pay them for.

Like they said, your bank is going to order an appraisal from someone that is qualified by them to create this report. Doesnt matter what the seller says, your bank will only loan what the they think it is worth and not a penny more.

In regards to influencing appraisers, happened back in 2005-07 but nowadays, everything is being scrutinized and if the bank thinks this is happening, someones head could roll and the appraisers dont want to lose their license so ...not saying it is not happening, but less likely to happen nowadays