so my wife and i have been in contract for 8 months and had to order a new appraisal. it took forever for the building to get the CO... anyhow, the original appraisal from last year came in perfect, right on target, but the latest one (of course now that we're ready to close) came in about 50K too low!!! on top of that, they listed the square footage almost 100 sq ft low! ughhh... obviously that's... [more]
so my wife and i have been in contract for 8 months and had to order a new appraisal. it took forever for the building to get the CO... anyhow, the original appraisal from last year came in perfect, right on target, but the latest one (of course now that we're ready to close) came in about 50K too low!!! on top of that, they listed the square footage almost 100 sq ft low! ughhh... obviously that's why the appraised value was much less than contract price.
anyhow, has this happened to anyone else? our mortgage broker is claiming that he will get it appealed and 'fix it', but i have my doubts.. he's saying that he will have the bank pay for another appraisal as a "last resort". we're bitting our nails off over here really nervous that this whole thing that we've been waiting for, is gonna tank. :( any insights, advice are much appreciated.
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Response by uptown_joe
over 13 years ago
Posts: 293
Member since: Dec 2011
No direct experience with this, but after the factual errors (sqft) are corrected, if the appraisal remains slightly-lower-than-contract might that give you a bit of leverage to push the sale price down? Assuming you have a financing contingency and the appraisal means no financing (within the limits of the contract), the seller might prefer to accept a bit less in order to finish the deal, rather than scrap it and restart a sale to someone else.
Also, just to point out the obvious, it's not impossible that a fair appraisal of the apartment's market value has declined a bit over the last 8 months. Not highly likely as it sounds like this is new construction, but not impossible.
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Response by jonsmith
over 13 years ago
Posts: 7
Member since: Apr 2009
Sorry can't provide any advice, but am curious, does the appraisal have to be at the contract price or just the amount that the bank is financing?
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Response by w67thstreet
over 13 years ago
Posts: 9003
Member since: Dec 2008
Nihao. So the appraisal came in lower and you are the catalyst with which everyone gets paid, and you are biting your nails. Flmaozz that's mandarin for Flmaozz.
Who needs any more evidence of the re bubble retards. Here is exhibit A. I better close, the prices will only increase. I can't afford it unless interest rates are at 0% and you only need 5% down.
Gotta catch my flight to shanghai. I thank my LL for charging me 2% on his $2mm condo. This trip is on him. Shi shi.
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Response by tommy2tone
over 13 years ago
Posts: 218
Member since: Sep 2011
I don't know but I had an appraisal done for 1 of my properties and the appraiser did a sloppy job and came back with a ridiculous value which was still fine from my ltv perspective but the bank sent the appraisal back, made them correct their sloppiness and somehow the value of the property increased
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Response by huntersburg
over 13 years ago
Posts: 11329
Member since: Nov 2010
>Gotta catch my flight to shanghai. I thank my LL for charging me 2% on his $2mm condo. This trip is on him. Shi shi.
Your position is that your 4 person family is living in a $3300/month apartment?
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No direct experience with this, but after the factual errors (sqft) are corrected, if the appraisal remains slightly-lower-than-contract might that give you a bit of leverage to push the sale price down? Assuming you have a financing contingency and the appraisal means no financing (within the limits of the contract), the seller might prefer to accept a bit less in order to finish the deal, rather than scrap it and restart a sale to someone else.
Also, just to point out the obvious, it's not impossible that a fair appraisal of the apartment's market value has declined a bit over the last 8 months. Not highly likely as it sounds like this is new construction, but not impossible.
Sorry can't provide any advice, but am curious, does the appraisal have to be at the contract price or just the amount that the bank is financing?
Nihao. So the appraisal came in lower and you are the catalyst with which everyone gets paid, and you are biting your nails. Flmaozz that's mandarin for Flmaozz.
Who needs any more evidence of the re bubble retards. Here is exhibit A. I better close, the prices will only increase. I can't afford it unless interest rates are at 0% and you only need 5% down.
Gotta catch my flight to shanghai. I thank my LL for charging me 2% on his $2mm condo. This trip is on him. Shi shi.
I don't know but I had an appraisal done for 1 of my properties and the appraiser did a sloppy job and came back with a ridiculous value which was still fine from my ltv perspective but the bank sent the appraisal back, made them correct their sloppiness and somehow the value of the property increased
>Gotta catch my flight to shanghai. I thank my LL for charging me 2% on his $2mm condo. This trip is on him. Shi shi.
Your position is that your 4 person family is living in a $3300/month apartment?