Home Buying in Brooklyn>Question Details

tapesandtapes, Home Buyer in Brooklyn, NY

2nd appraisal came in lower and sq. footage was wrong. what are our options?

Asked by tapesandtapes, Brooklyn, NY Thu Mar 29, 2012

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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5
If you are the buyer, not sure why one would dispute a lower appraisal, are you looking to overpay...what is your agent advising, and have you tried renegotiating the lower price with the seller...
1 vote Thank Flag Link Tue Apr 3, 2012
Why dispute the appraisal. Negotiate with the sponsor/developer to get a lower price. It sounds like you are buying new construction or a new conversion since they didn't have a CO when you went into contract. Are you paying seller's transfer taxes? attorney fees? Negotiate.

Your options are an appraisal appeal or get a different lender or have the seller order an appraisal since it is their responsibility to price units that will appraise if they are allowing financing contingencies. Or you can pay the difference with a larger down payment or walk.

Have any other units closed in the building? Time to renegotiate or walk. They probably don't want to lose a buyer after 8 months in contract.

Mitchell Hall, Associate Broker
The Corcoran Group
917-312-0924
MHALL@corcoran
1 vote Thank Flag Link Tue Apr 3, 2012
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
Contact
Consult with your loan officer, and or agent, and or attorney, they can better advise--If you are the buyer, you can either ask your agent to renegotiate the price with the seller; add additional money down; or simply walk away....
1 vote Thank Flag Link Thu Mar 29, 2012
thank you. yeah, we have been talking to our mortgage broker and he 'fixing it'. i guess he's appealing the appraisal, but what is probability that the appeal will go through? from what i've read, it doesn't look too good.
Flag Thu Mar 29, 2012
In my shop only the borrower can dispute the appraisal. You have the right to do that regardless of what type loan you are using. You are also able to submit any documentation that supports your claim. If the appraiser measured the unit incorrectly it is an easy fix. I would get a copy of the first appraisal and submit the entire report, but only base your dispute on the measured space, not the comps.

While you are at it, review the comps in the new appraisal to see how they stack up. Sorry you are having trouble, appraisers make mistakes just like the rest of us. Good luck,
0 votes Thank Flag Link Thu Mar 29, 2012
Hi Tapesandtapes
is this new construction condos?
First speak to your attorney. And Just as Ann Brocco stated - renegotiate, because the next
buyer will have the exact same problem. So they might as well deal with you. Good luck
madelinepadovano@fillmore.com
0 votes Thank Flag Link Thu Mar 29, 2012
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