The week our appraisal came in low. The appraiser did a great job, went beyond what was expected but could not show the price the listing agent had put on the property.
History: The house was build and sold in March of 2023. The closing price was $333,000 in 2023. The buyer, who is now the seller, got a VA Loan. Knowing he got a VA Loan and had not owned the property for a full year made this a hard sale. This house was in competition with new constructions the builder is building and finishing now, they are on the market at less than the current seller was asking for his.
The appraiser did his job, he provided the seller and the current buyer with 6 comparables supporting his appraised value. The contract is subject to said appraisal.
At this point we can:
1) End the contract and go back looking for another house
2) Pay the contract price, which is more out of pocket for the buyer and with the improvements he is planning: fenced yard, vinyl plank flooring in the primary bedroom and sodding the back yard he will be upside down.
3) Negotiate the price to the appraised price--which also determines the tax value for property taxes--and close.
Stay tuned, I will update this as the events unfold.
We closed!!! Let me know your worst closing story. I like to hear about things that can be cured. See you in the future!! Gwen