Co-Op appraised lower than selling price

Offer $100K.

Do you feel it's worth $110k or $115k. If you are comfortable paying $115k for the property then I would consider offering $115k with a mortgage contingency.

Mortgage appraisers have a duty to the bank to ensure that the bank is not lending excessive amounts of money on a property. However, they aren't in the business of appraising properties for less than somebody is willing to pay every day of the week. They will do their best to realistically justify the $115k. Your appraiser knew that you had a vested interest in keeping the price low so may actually have valued it low purposefully.

If you include the mortgage contingency then both sides are protected. If it does come back lower then you are protected - you don't have to move forward to purchase. It would also provide a sharp reality check to both the seller and you that the property cannot realistically be valued so high and may then result in further compromise on the price.

This is why cash is king. No dealing with banks and their appraisal hacks and paperwork nonsense. Let the market dictate price not some appraiser using comps from 3-6 months ago.

Or offer $100 and save $15k.
Any other suggestion sounds oxymoronic.

The appraisal you got is not the appraisal the bank will use. They will use their own appraiser. If the appraisal comes out to be less than the selling price, the bank will require a higher down payment. At that point you can either tell the seller to lower his price or walk away from the deal.

Go to another bank so you can order a new appraisal.

Guy, I don't believe he went to a bank; he seems to have hired an appraiser on his own.

Guy with cat!

FC - Given that Tim Kreider's piece stayed on NYT's most-emailed page for as long as it did, I think it is clear that New Yorkers respect a man with a cat, so I'm not sure where you are going with this.