Appraisers are picked form a pool and you could have had a bad appraisal.. it is happening a lot of appraisals nowadays. Most that I have dealt with have been pretty lousy.. Recently had an appraiser coming from north west NJ to do an appraisal in Middlesex county.. the guy was absolutely clueless. Clueless about the market, the area and just clueless overall. We fought it , but it was a moot point.
There is a Realtor here on Trulia that is also an appraiser.. I clipped his posting where he sated that he actually hits the number the bank tells him to do.. this way if he follows what the bank tells him... he gets more appraisal work!
You can try, it will cost you about $400. But unless it was blatant and the comps are in your favor.. I'm thinking it is a moot point too.
If you hold a 2nd mtg and the buyer ever defaults you will be a 2nd on the property and could lose out on being repaid. Ask your atty and also your accountant for guidance.
Lower your price, sell your home and move on. It sounds like you have a qualified buyer with 20% down ready to close; I'd take it if I were you in this market.
So in my opinion its cheaper to maybe help the buyer with a new appraisal or ask them to order an appraisal than lending large amounts of $$$ on a declining asset in an rough economy.
Offering a second mortgage is probably not an option. Anything like this would need to be approved by the lender and would change the financing the buyer already has in place.
Your agent or the buyer’s agent can provide alternate comparables and ask the appraiser to reconsider or you can order your own appraisal and submit that for the lenders consideration. Neither option will guarantee the results you want.
I think the big question here is; how much is the difference? If the Lender doesn't accept the second appraisal or agree to amend the first, they won't lend your buyer a nickel. You state your buyer is willing to place 20% down, so I'm assuming it's not an FHA loan nor are we talking a large difference?
You run some risk taking a second but you run the same risk challenging the bank. How badly do you want to move on with your life? Is it worth the difference?