What kind of repercussions may come up if you ask for a review on your appraisal? Do you usually loose the buyer if it is done?

Asked by Tanner, Fresno, CA Tue Aug 23, 2011

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Jim Simms’ answer
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Tue Aug 23, 2011
First, it isn’t your appraisal. Past that, do not waste your time unless you can provide proof the appraisal is wrong, in other words furnish a couple of comparable sales that justify the dispute. I have had builders and Realtors furnish me comps with lower sale prices than what the disputed appraisal used while asking for a higher value. Go figure???

Ask your realtor to provide at least 3 comps in the same neighborhood where your home is located that have sold and closed in the last 3 to 6 months. It only takes one comp to raise the question, however the more you have the better your claim. Unless you can provide solid proof the numbers are wrong most appraisers will stand with the original amount. As for loosing the buyer, who knows? They all are skittish these days.

Good luck!
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Lisa Reeves, Agent, Tampa, FL
Wed Aug 24, 2011
It really depends on what the buyer is asking for. If they at trying to get a reduction on the contract price ask to see the appraisal. If the comparables are wrong the buyer has the following options: pay the difference out of pocket, get a new lender and new appraisal, or walk away. I have had buyers pay 70k out of pocket and I have had them walk over 5k. If you have doubts ask the other agent straight - is your buyer thinking if walking away. They should tell you honestly yes or no.
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Rudi Hofmann, Mortgage Broker Or Lender, El Segundo, CA
Tue Aug 23, 2011
This happens more with refinances. On purchases the buyer's agent should have sufficient comps to justify the offer. The ideal situation would be that the seller has a recent appraisal.

Happy funding, Rudi
Web Reference:  http://www.umboc.com
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