Tuesday, February 21, 2017

FHA appraisal came back low with bad comps, buyers requested price drop?


Buyers had their FHA appraisal done and it came back at $346,000. Our house is under contract for $364,000. We have a 4 bedroom, 4 bath remodeled (2 years ago) home. The appraiser used 3 comps, all for 3 bedroom homes with 1-1.5 baths… And they all sold for more than we were appraised for. We had a buyer back out 2 months ago because they were unable to secure a mortgage commitment and their appraisal was fine (not fha). Within 5 minutes of receiving the appraisal email buyers asked for a price drop.

My agent pulled 3 comps for 4 bedrooms in the area priced from 400,000 to 370,000 but my attorney said that a rebuttal of an FHA appraisal never gets approved. Has anyone dealt with anything similar? We are purchasing a property that will not work with a price drop on our current sale. We were originally listed at 379k.

Thanks for any advice, I'm left believing that neither transaction will work at this point in time.

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