Posted on: 11th Mar, 2009 07:03 am
I REALLY need help. My husband and I are trying to buy a house and had an appraisal done (as required by the mortgage lender). The acutal value was much lower than the price we negotiated before the mortgage process. On our contract, the lawyer put in a clause for us to be able to walk away if the appraisal is lower than the price or the seller can try to renegotiate. Anyhow, the seller was unhappy about the appraised value, so he got another appraisal done. If the second appraisal is higher in value, he wants to have the first appraisal guy change the report. Can that happen? Also what should we do if two appraisals result differently? It almost boils down to which appraisal is more accurate. How will we decide that? Or does it even matter, since the first appraisal guy is from the mortgage lender? PLEASE HELP. THANKS.
It is quite possible for two appraisals to be different. Keep in mind that an appraisal is an opinion of value. However, if the apprasials are done properly, they should at least be within a few percent of each other.
On another note, the first appraisal was completed for the lender by an appraiser trusted by that lender. Another appraisal completed for the seller may not even be considered by the lender if they are not approved by the lender or in some cases, such as FHA, may not be approved for the specific loan program.
The lender, not the seller, can ask for a reconsideration of value from the first appraiser if they present specific data which may change the appraisers opinion. Specific data would include additional comparable properties that are more similar, more recent sales, more proximate to the property or even supportable statistical evidence of an upward trend in property values.
In the end, the final decision on the appraisal for the loan will be up to the lender since they are loaning the money.
On another note, the first appraisal was completed for the lender by an appraiser trusted by that lender. Another appraisal completed for the seller may not even be considered by the lender if they are not approved by the lender or in some cases, such as FHA, may not be approved for the specific loan program.
The lender, not the seller, can ask for a reconsideration of value from the first appraiser if they present specific data which may change the appraisers opinion. Specific data would include additional comparable properties that are more similar, more recent sales, more proximate to the property or even supportable statistical evidence of an upward trend in property values.
In the end, the final decision on the appraisal for the loan will be up to the lender since they are loaning the money.
Thanks for the immediate response. I will call the lender and discuss this further.
it's refreshing to see a reasoned response to an inquiry. thanks, benjamin, for the valuable contribution. if i get a georgia borrower, i'll know who to ask for in the need for appraisal.
