So, it sounds like new homes are not held to the same lending rigors of used home sales? I understand the lendors using incentives to entice buyers, but I would think the homes would have to undergo a similar appraisal process.
I am baffled as to how the same bank can be the preferred lender for a new home down the street from us selling at 8% higher starting price than the resale home we are trying to sell, but their appraiser valued our house at $100K less (20%) than these new homes. (Again our home is only 3 years old, according to the home inspector "in excellent condition" and has over $60K in upgrades) Either the new homes they are lending on are not worth the price they are selling them for OR our home is worth more than their appraiser valued it for. I cannot see any other reasoning... but maybe I am too personally invested in the situation.
As for our appraisal, it was done prior to May 1st and the appraiser seemed to use mostly the foreclosure or short sales in our neighborhood, disregarding the other comparable homes in our area that are selling for our same price range. To me they should consider the new homes at $475K, the short sales at $400K, the comp homes at $440K and our home would logically end up somewhere in the middle. But the appraiser valued us BELOW the cheapest short sale. There have been numerous new homes in our neighborhood sold for over $500K in the last 6 months. I don't get the logic!
We are still trying to get the matter resolved and hope to still be able to have a good outcome. As for dropping our sales price, we are not a distress sale and will end up staying put rather than losing that much value in our house. We were just trying to get into a bigger home before our eldest started school so we wouldn't have to displace him in a few years. I guess the market is making that virtually impossible these days...
Thanks for all the feedback and information!