Low Appraisal

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  • #42506
    ggof3
    Member

    Hello everyone,
    Does anyone know if there’s an appeal process for an unusually low appraisal? Everything was flowing just fine until I received the appraisal a few minutes ago and it is 26K lower than contract price. To be honest, I have been checking various real estate websites for comparable sales and figured appraisal would come in slightly lower than purchase price but not this much lower. I have not heard from the sellers at this point because appraisal is moments old, but I do not believe they will drop to appraisal price especially since identical house 2 doors away just sold for 4k less than purchase price. I need HELP. Any info would be greatly appreciated.

    #42514
    dangela21
    Member

    Yes there is a process to appeal a low appraisal. I purchased my home through NACA last year and I had the same thing happen to me. My home was an older home that had been completely upgraded and when I got the appraisal back it was about $16K lower than what we expected. My realtor was able to get a appraisal reconsideratioin letter drawn up and presented it to my counselor to submit for an appeal. We were able to get information from the seller on all the upgrades that they did to the home along with some home sale comparisons to include in the appraisal recondiseration. The process took about a week to get the results back. One I got it back they updated the appraisal form $16K lower to $9,500K. At that point we went back to the seller with the new appraisal and they worked with us and dropped the price down to the new appraisal amount.


    @ggof3

    I think I have all my emails still so if you need a starting point I can point you in the right directions. Just send me your email.

    #42515
    ggof3
    Member

    Thank you for responding @dangela21 and yes I’d appreciate any docs you may have that can help me attempt to get back on track. Do I just send you my email in a regular message on here?

    #42518
    dangela21
    Member

    Just email me at dangela.cpa@gmail.com and when I get to work I will go through my emails and send you what I have. Glad I could help. @ggof3

    #42535
    TTrumble
    Member

    Hello dangela21,

    Thanks for being so willing to give ggof3 the benefit of your experience. That’s one of the most important parts of this Forum!

    BTW, if anyone wants to exchange contact information and is concerned about posting it publicly, you may always go through me to relay the info. Just email me and I will relay the information as requested.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 3 years, 11 months ago by TTrumble.
    #42545
    dangela21
    Member

    @TTrumble

    I’m always willing to help in anyway I can. I have been out of the forum for a bit but I have started writing my testimonial for my NACA Journey and will post it when my time permits. Its been a little over a year since I closed on my home and I couldn’t be happier about the benefits of the program.

    #42568
    ggof3
    Member

    THANK YOU SO MUCH @deangela21 and @ttrumble. I don’t know what I’d do without this forum, especially at this stage of the home purchase process. @deangela21 provided such a wealth of information for the situation I encountered, I cannot begin to thank her enough. I will update my post once I have a resolve.

    #42569
    dangela21
    Member

    Happy that I could be of help.

    #42764
    ggof3
    Member

    UPDATE on low appraisal
    The results came back the same. The decision is now with the sellers. I advised my realtor to let them know I’m willing to let go of the agreed upon 2% for the interest rate buy-down and I’d put my own funds into escrow for the few minor repairs. I am now in “wait” mode/ and just to clarify…wait mode is not the same as stop mode – no one is stopping me from getting a house; maybe not THAT house but I never stopped looking at houses just in case there were issues. I should have an answer by tomorrow and I’ll update you guys then.

    Once again, thank you @dangela21 for invaluable information.

    #42766

    Appreciate the update, @ggof3. I hope it all works out.

    #42804
    ggof3
    Member

    UPDATE #2
    GREAT NEWS!!! The sellers agreed to the lower appraisal price. In addition to the concessions I previously offered (no seller contribution towards rate buy-down & out of pocket repairs), they also asked if I’d remove the offered home warranty — ab-so-lutely!!! My birthday is tomorrow so I don’t know of a better present! YAY!!
    The next update will be in my original timeline post!
    I don’t know what I’d do without all the people that post in this forum, so thank you, and good luck to everyone on this journey to home ownership.

    #42805
    dangela21
    Member

    @ggof3 I knew that counteroffer to forgo the contribution would work. I told you. Congratulations and welcome to the homeowner club.

    #42833
    TTrumble
    Member

    Hello ggof3,

    CONGRATULATIONS!!!!!

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #61719
    MATARS08
    Member

    @dangela21 I’m actually going through the appraisal appeal process rn. Could you tell me how long the process took? I’d appreciate any input you can give. Thanks

    #61732
    dangela21
    Member

    Hi @matars08 the whole HAND process took me exactly 30 days. That’s with two inspections done, repairs; two appraisals and the disputes appraisal process along with cancellation of wishlist items. The appraisal dispute/reconsideration process took about 2 weeks, that’s including the original appraisal timeframe and the new appraisal reconsideration timeframe. I hope this helps.

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