Appraisers will typically factor a pool into the price IF it is an outstanding pool (think resort) AND it actually is a primary selling feature of the home. Otherwise, a pool doesnâ€™t usually add much.
Sellers can challenge an appraisal. It means additional money out of their pocket, and will more than likely not change the valuation â€“ AND â€¦ at the end of the day, since you already have a valid appraisal, you can hold firm to not going above that valuation.
Discuss the whole contingency issue with your agent â€“ the challenge will take time. Time you may not have or want to give.
I would suggest you forget the sellers view point and ask, does the appraisal make since to YOU.
Also ask , how do you know the pool was the factor?, There could be other features of the property that the appraiser did not consider as valuable as the seller did.
I don't know your area, but a lot agents like to "blame the appraiser" for over priced properties, but the appraiser is supposedly pulling the same data from the same data base, no matter where they are from, and are pricing based on the worst case scenario for a quick sell.
In summary, if YOU feel the appraisal is sensible, then call the title company, your agent and your lender and start getting the finance contingency info etc., Try getting your lender to share the appraisal with you.
A home in Florida without a pool is a very hot place indeed.
Without knowing the details, but knowing the landscape in most of Florida, I would speculate all the homes included in the comps had pools, perhaps all had 2 car garages and were block constructed. The home may even be in a community of 1500 homes of similar age, size and style. Don't need a post graduate degree to project a value in this situation. These valuable attributes have been normalized.
Now, it becomes a bit difficult to argue that investing $15,000 to $45,000 for a pool, enclousure and pavers will not add value to a home. In what other circumstance does such a investment in tangible value not appear in an appraisal UNLESS the pool was in such a state of neglect as to be a liability. It is unlikely an occupied home would present this challenge.
If I were the homeowner, I would not become a victim to a misguided appraisal. (However, the motivation of the seller is the key issue here) I would offer to hire another appraiser IF you agreed to the outcome or willing to split the difference. Be aware, the new appraiser could be significantly higher than you expect.
Although we all would like to blame the appraiser for these issues, we need to recognize the bank will submit to the appraiser a set of parameters and restrictions allowed as comps used to calculate the appraisal.
Without more details, it's all speculation!
If you were my clients the first thing I would ask you,"Is it worth loosing the home for the $15k?" By the question that you are asking I can only assume that you want to pay $15,000. less than what you originally offered and go with the Appraised Price. The question that I would ask the Sellers would be, "Do you want to loose a sale over $15k?" If you love the house go forward with the purchase and disregard the Appraisal. If it's not love at first sight than ask the seller if they would meet you in the middle and each give $7,500.
Remember, when buying a home there should never be a winner and a looser. Both the Buyer and the Seller should come away form this transaction feeling like they almost received everything that they wanted.
The sellers' agent has a right (duty) to challenge the valuation and/or insist on a secondary appraisal. In addition, I assume that you took the appraisal contingency in your purchase contract. If every other effort to change the valuation fails, the contingency gives you the right to cancel the contract.
Keep in close contact with your agent and make sure s/he is communicating closely with the sellers' agent to know what is happening. Good luck!
The sellers can challenge the appraisal it's their right. They don't have to come down in price either. Their agent should have provided the appraiser with comps to prove the value of the purchase price.
You should have an appraisal contingency within your contract and have a right to back out if you and the seller can't come to terms on price due to the appraisal.