1. Accept the appraisal at value, proceed with a lower price and call it a day.
2. Take it off the market until values grow.
3. Appeal the appraisal â€“ this may take a while and, even if it comes in higher, there is a good chance the buyer will not be willing to go higher than the original appraisal.
I know it totally sucks â€“ we run into this on a very regular basis. Unfortunately, if the only comps are distressed sales, then, in reality, those are the comps whether you like it or not.
Here are a couple of posts that may be helpful:
Top 5 Foreclosure Myths for 2012
(Point #4 is applicable to your situation)
Yet ANOTHER Buyer Loses A Home To A Botched Appraisal (Buyers No Longer Setting Prices)
Missed It By THAT Much: Top Four Solutions To Low Appraisals
Also if you feel there is an issue always meet the appraiser there with your supporting comps..this has worked for me in the past..
Is the buyer really looking to lose the property over a few bucks? It doesn't look like your making your investment back here so either have buyer make up the difference or hold out for a new buyer who'll pay the price you need.
Appraisals are a huge issue right now and causing problems for home sellers because of the market.
Some home sellers have put together packages along with their Realtors that go over the home improvements with ,CMA's and features so that the appraiser can note the differences between their home, and others in the immediate area that have sold.
This will sometimes improve an appraisal enough so that if the seller will drop the price and the buyer will increase the offer there can be a "meeting of the minds", so to speak.
Sometimes a seller will ask for a second appraisal which often comes up a different value.
It does seem unfair that a "regular sale" home has to compete with a "distressed" property but that is the competition, unfortunately. Please also look into what the short sales final sale price is, it will be much higher then the listed price and may help.
You have three choices. 1. Sell at the this price 2. put back on the market and wait for a better offer 3. hold property until values increase.
It sounds like you may end out short and having to wait until you can realize more equity. You may consider renting out your current home and buying another if you don't have any lates in the last 12 months to qualify to buy. You can qualify to buy with only half percent down payment program with a minimum 580 fico score with a rental agreement and deposit on your current home. You may sell when you can realize more equity in the near future or when ever you decide. Home prices as well as rents are on the rise. Are you re-locating?
Sheryl Arndt, Real Estate Broker â€“ Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
1. Make a list of all upgrades, include receipts and date of everything, this would be great in a binder with tabs for easy access, provide this to the appraiser
2. As the agent, provide new comps to the appraiser, see if there's anything else that has Just Sold
3. Make sure to have all this to him immediately
4. Line up a second appraiser and make sure to get his opinion before going with new appraiser
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1. Accept current low value appraisal and close transaction.
2.cancel transaction and wait for another buyer (cash buyer who won't have to rely on appraisal value).
3. Can cel transaction and take property off the market and put it back on the market once you have some compatible sales that can support your desired price.
4. You can try to dispute appraisal and justify higher value- which in your case will be very hard due to upsets of compatible sale.
Hope this will help you.
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