But, this week marked the first time in FOUR years that I've had an appraisal problem. This one is an escrow for a buyer. Appraisal came in below purchase price 5%. It's a small purchase to some, but it's a good chunk of change to the buyer.
Short-Sale that took over 3 months to get approved. And, now we have to ask them to reduce the purchase price.
I spoke with the appraiser....there really aren't strong enough comps to support the purchase price. Keep reading.....
Backwards now.....multiple offers on the property when we wrote. Buyer is doing 95% financing and we were competing against an all cash offer....from within the listing agents company! But, she stood true to her word and because ours came in first, the seller took my clients offer.
3 months ago we were still in a bit of a declining market, wouldn't you say? Fast forward to now and we are in a market that is appreciating. The inventory has reduced to horribly low levels, every property (short-sale or not) seems to have multiple offers on them. A buyer doing 95% financing has an uphill battle on acceptance with these conditions.
But, I don't just bend over. Nope. We have one comp for a lesser unit that closed closer to our purchase price....but that's not enough. So I contact escrow and ask is there any extra money floating around ~ they are checking. And, the listing agent is submitting the appraisal to the SS lender and asking for a reduction in purchase price.
Back on the sidelines is that all cash buyer just waiting to pounce!
So, 4 years later I'm working on it for my client. Last time it worked out AOK....we shall see how this works out.