Appraisal not meeting value

[kenny c]

My parents are buying a new house and the appraisal came back 12% les than builder cost. Can they do anything to get a new appraisal or get out of the contract and get their money back?

New home construction, just outside New Orleans

[yellowstang]

Man, I dunno about getting out of the contract, but they "should" be able to walk away and just loose the earnest money they put down.

[fordracing19]

Location,Location,Location

[Broncojohnny]

Do some research and argue with the appraiser about value. There are plenty of those guys who have their head up their ass.

[kenny c]

The appraiser used comps from 5 year old houses

[Broncojohnny]

The appraiser used comps from 5 year old houses

Point that out, then get your own comps and send them to him.

[Vertnut]

They can just walk away, unless they put some money up. If it's a "spec", it's a great bargaining chip. 12% is a SHITLOAD difference. I see $3-$4k, but we're talking $24k on a $200k house?

[kenny c]

Cliff notes - ~$250k loan, put 10% down already, appraiser came out and sent his appraisal to title/mortgage already because he has already caused a 1 week delay in the closing, now mortgage company says they need ~10% more (in cash) to close

They can come up with the $$, but it would be out of their retirement and they would pay a penalty too. It is a new construction they started back in June.

Anyone know how to legally get his appraisal "thrown out" and use a different one with more current houses and pricing? The current one used 3 comps - 2 houses 5 years old and 1 new one, but smaller and not as nice.

[fordracing19]

We had to have an appraisal before we built our house.

[juiceweezl]

I thought comps had to be houses that sold within the last year or 2. Were the comps used sold recently?

[Cooter]

they were probably sold recently, they were just 5 yrs old

[Real Estate Nate]

Is it an FHA appraisal?

Call me

[SVT Lurch]

Do some research and argue with the appraiser about value. There are plenty of those guys who have their head up their ass.

While that's true, they're also VERY unlikely to change the value thanks to HVCC.

My parents are buying a new house and the appraisal came back 12% les than builder cost. Can they do anything to get a new appraisal or get out of the contract and get their money back?

New home construction, just outside New Orleans

There should have been a financing addendum to the contract that said the house must appraise for X amount for the loan to work. If the appraisal doesn't make value then you should be able to walk away with everything except their option money. Of course that's hard coded in the Texas contract, not sure how Louisiana is worded. Would need to see the contract.

The appraiser used comps from 5 year old houses

There should be adjustments for age. As long as the sale is in the last 6 months that's perfectly acceptable.

[Broncojohnny]

While that's true, they're also VERY unlikely to change the value thanks to HVCC.

Then fire their asses and get another appraiser. Then provide the new appraiser with comps up front rather than after the fact. If the lender doesn't like that then fire their fucking asses off the roof as well.

I just negotiated an 18% value increase on a portfolio of 57 buildings last week. But this happens on every loan I do, no surpise to me at this point. Fucking pricks had no clue what they were doing and these are supposedly the hot shit commercial boys, I can't even imagine the dumbfucks working in residential.

[Vertnut]

Then fire their asses and get another appraiser. Then provide the new appraiser with comps up front rather than after the fact. If the lender doesn't like that then fire their fucking asses off the roof as well.

I just negotiated an 18% value increase on a portfolio of 57 buildings last week. But this happens on every loan I do, no surpise to me at this point. Fucking pricks had no clue what they were doing and these are supposedly the hot shit commercial boys, I can't even imagine the dumbfucks working in residential.

Yeah...get another appraiser and TELL them what you need. The bank/mortgage company can't do it, but the homeowner can.