What is the best recourse when there is a disagreement over the appraisal value?

Asked by Trulia Jacksonville, Jacksonville, FL Fri Dec 7, 2012

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Annette Law…, Agent, Palm Harbor, FL
Sat Dec 8, 2012
If the seller can justify the price with correct comps....the buyer brings cash to the table.
The gaming of the appraisal process has reached such incredulous proportions that the home seller must be prepared. In that preparation, the buyer MUST be qualified to buy the home at the negotiated price.
The purpose of the appraisal, (you don't get to see the RULES the bank impose on the appraiser) is to make sure the bank can sell the note to an investor. The purpose of underwriting is to create a firewall so the bank will not, at some future time, be required to 'buy back' the note. That IS the game.
I know....we all tend to think is has something to do with establishing the 'value' of a home.
A willing seller and able and willing buyer establish the value. What you are experiencing is a continued violation of that process. The buyer, must be prepared to bring cash to the table in the event a appraisal comes in low or should not be considered a qualified buyer for the home at all.
The buyer, however, often views this as a new negotiation opportunity based on the interference of a third party.

Best of success to you,
Annette Lawrence. Remax Realtec Group
Palm Harbor, FL
0 votes
Lucero Leirv…, Agent, Plantation, FL
Fri Dec 7, 2012
One of the best ways to get solution for this issue:
*Request a second appraisal with other company or appraiser.
If you have more questions or concerns regarding to the appraisal of property please send me an e-mail. I will be more than happy to help you.
Lucero Leirvik
Exit Metroquest Realty
E-mail: cleirvik@bellsouth.net
PH (954)298-8410
Facebook: Lucero Leirvik http://facebook.com/lucero.leivik
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Rosina Eisen…, , Jacksonville, FL
Fri Dec 7, 2012
Speaking for Florida, Jacksonville specifically, an appraisal is an opinion by a professional who has been trained and has to serve as an apprentice prior to providing an appraisal on their own. New laws have been passed so lenders could no longer would be defrauded by appraisals, thus the only one able to order and appraisal or communicate with the appraiser is the lender, even though the Buyer pays for the service.

There are three alternatives. 1. Ask your realtor to request a second appraisal from a different source. 2. Accept the appraisal and pay the difference out of your pocket. 3. Ask for the Seller to reduce to asking price to reflect the appraisal. You could always walk away and find another home. I hope this clarifies it for you. Your realtor should be your greatest resource.
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Sellin' With…, Agent, Jacksonville, FL
Fri Dec 7, 2012
Right now there is a lot of that. You do have to remember an appraisal Is only an opinion of value. And the value is in the eye of the beholder. I am of the opinion that if a buyer and seller agree on a price. ( pending repairs) then that is the market value and is the value. What one buyer is willing to pay for the perfect home is differen than another. These appraisal disputes are becoming more common and on a large scale in Jacksonville. $20-$30K + below purchase price . You can dispute the value with the appraiser. This may or may not work. The best luck I have had is with a new lender. You cannot choose your appraiser for a loan now , so it may best to go to a broker or another mortgage company. Many times the buyer agrees to pay again and if it does not appraise the second time then the seller will reimburse. On two occasions this year we have had appraisals $30K below purchase price and both times a new lender, new appraisal was the trick. If the home has upgrades receipt and proof Of improvement will help and te seller shoul always meet the appraiser at the home. I hope these tips help.

CC Underwood
The Sellin' With CC Team
Keller Williams Jacksonville Realty
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allan erps,A…, Agent, Pearl River, NY
Fri Dec 7, 2012
1 of 3 things can happen here. The house can get sold for the appraisal price, the seller and buyer can agree to split the difference of some sort, or either party can walk away from the deal.
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