W,

As already mentioned more information will be needed to give an accurate answer. If the appraisal was completed by a reputable appraiser, even with a second appraisal the answer you receive may be much the same. In some areas that are identified distressed or severely distressed are cutting 5-10% from the appraised value. This may be what is happening as well.

If you are trying to get a loan and are working with a mortgage broker I would see if you could get further information as to why the appraiser came up with the value they did. This may help you have a better understanding.

If you are the home owner and are having the appraisal completed for a sales, again I would see if you can make contact with the appraiser to help understand how they came to the appraised value.

Good luck!

Lisa Cartoalno
Alain Pinel Realtors

Fri Jul 11 2008, 12:09

Hi W.
Eric is right on. We actually need more information to be able to answer if it would be worth your while to have a second appraisal.
Diana 909-945-5763

Fri Jul 11 2008, 11:30

Hi W;
Appraisals are much more an art than a science. It very much depends on what you are getting the appraisal for. A market appraisal is much different from the appraisal you would get if you are refinancing your home. If the appraisal is for the bank, you can get a 2nd opinion, but it must be from an appraiser who is approved by the lender, and that first appraisal will not totally go away. They both become part of the mix.
What are you getting the appraisal for?

Fri Jul 11 2008, 11:12

You have three contingencies that might protect you, depending on how your contract is written: loan, appraisal, and inspection contingencies. generally you have between 10 and 17 days to use the contingency to get out of a contact without losing your deposit.

If your appraisal came back at or above your offer price, you'll have a hard time getting out of a contract on the appraisal contingency. Even so, you should scrutinize which comps were used and how old they are.

Comps should be no older than 90 days, within a mile of the Subject house, within 10% of the square footage, within 10 years of age, and of similar quality and lot size. Be sure that the appraisal uses comps that are model matches first, within the same tract second, and others third.

If you are within your window for the contingencies, you simply send the Listing Agent and Escrow a cancellation form. But this is where theory separates us from practice.

Once escrow is opened, all parties must agree to the cancellation. If the Seller thinks you aren't entitled to your deposit back, for any reason, he can simply cancel the escrow but refuse to release your funds. Then you'd need to look to your purchase agreement to see what it says about arbitration and liquidated damages.

You'll also need to read any addendums you might have signed.

Thanks for the opportunity to help. Your real estate agent should guide you through this process. If you are unrepresented, or want a confidential review, feel free to contact me directly at 951-51-9229 or Sean.Giorgianni@gmail.com. There are many subtle and complex issues that could affect your individual situation.

Fri Jul 11 2008, 11:10

W,

You don't say what the appraisal was for. Depending on how you wish to use it, you may or may not be able to get a 2nd opinion. If you are buying or refinancing a house and the appraisal was not acceptable to you, you can ask your lender what their regulations are. My wife and I recently ran into the same situation when refinancing our personal residence. We sought the opinion of a 2nd appraiser that had worked on our home in the past, but also had to switch companies in order to use the appraisal. The first mortgage company wouldn't even consider a 2nd opinion so we were forced to decide whether to switch or not refinance. Keep in mind that you will have to pay for the 2nd appraisal and you really have no guarantees that it will be closer to the value that you want.

I hope that helps.

Cameron Piper

Fri Jul 11 2008, 11:06