Anyone know anything about appraisals?

Here's our situation. We accepted an offer on our house, and came down substantially but that's the way the market is. Our buyer has very little money to put down and they asked that an appraisal be done before we went into contract to be sure that it would appraise for what they are paying.

So, the appraisal was done last Thursday, and we just got the results today. It is FIFTY THOUSAND DOLLARS under the accepted offer price. The appraiser told my agent the comps he based it on, and the main one happens to be an estate sale sold by a friend of the family. They practically gave it away because they just wanted to offload it and took the first offer they got. I know this house, it was in horrible condition, needed a roof, kitchen, bathrooms, EVERYTHING. My house is completely renovated in the past few years (roof, siding, patio, granite/stainless kitchen, new baths, new hardwoods, etc.), and I also feel it is an unfair comparison considering they just offloaded it for such a low price.

Is there a way to challenge an appraisal? I know the market stinks but seriously, this is a very low amount for my house to appraise for. Even in this market you could never find a renovated house for this price in my town.

Either way, I fear, my deal is dead...

Re: Anyone know anything about appraisals?

Message edited 11/21/2011 3:44:49 PM.

Re: Anyone know anything about appraisals?

I was just in your situation, except I was the buyer.

my perspective was, IF you can prove to my BANK the house is worth the agreed upon price, GO FOR IT.

If I were you, I'd hire and independent appraisal and get whatever public information is available about the unfair comp to show to the bank.

my seller didn't do this, she just came down in price (though our difference was 13 K, not 50)

be warned though that you home may still appraise LOWER, and you either have the choice of lowering your asking price to a point your buyer can afford, or sticking with the house until the market goes in your favor.

coming up with the down payments and closing costs these days is HARD.

we are putting 10%, plus paying almost 15k in closing costs....

I didn't want to lose the house, but I didn't want to lose my shirt buying it either.

this market is scary for buyers and sellers alike...who knows where home values are going at this point!? buying a house ABOVE appraised value leaves many things unknown...negative equity is NOT very appealing...

I am truly sorry your house appraised so low. I would definitely kick out the $400 or so to have it appraised again...

at this point it's not about what you OR your buyer thinks it's worth...so don't mistake their inability to come up with a difference as a sign they don't value the home....

having JUST come out of this situation on TUESDAY...I know it sucks