An excessive (more than 90) DOM usually negatively effects the appraised value, because that is an indication of a home being overpriced. The opposite (less DOM) doesn't work in reverse though.

Unfortunately, homes that are "priced to sell" - foreclosures, short sales, relocations, etc - are most representative of the current real estate market in most areas nowadays. And lenders want to err on the side of being conservative, even if it kills a deal between a willing buyer and seller.

When there are an abundance of similar comps in a 3-6 month time frame then an appraiser may have the ability to overlook one bad apple. But when there aren't (like now), then they have to report things back to the lender best they can even if it upsets the buyer and seller. The new HVCC (home valuation code of conduct) adopted recently makes it even tougher to dispute an appraised value as well.

So unfortunately it sounds like you're stuck between a rock and a hard place here. Best of luck