Buyer's appraisal less than FHA PFS appraisal?
FHA PFS appraised value is $130k. Buyer is working through his financing and the lender appraisal is only for $124k (conventional loan). He obviously doesn't want to pay more than appraised value and our standard state purchase agreement has an appraisal continency. Has anyone ran into this and how was it handled? All suggestions welcomed!
Replies to This Discussion
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Permalink Reply by Tony and Robin Pickett on
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It's a full price offer, and still within the first 30 days, so we are just meeting the 88%. Buyer's appraisal is $6,000 less than the FHA appraisal and they don't want to pay more than their appraised value. Ideas?
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"As-Is Value" as seen on the ATP doesn't make much of a difference as long as they are meeting their net amount. If you are unable to meet the net, a variance request can be submitted to HUD as long as you have the buyer's appraisal to back you up.
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If the buyer can give you a copy of the appraisal, submit over to the lender and have them submit a variance request to HUD. I feel like this process is a gray area depending on the lender but that has worked for us in the past.
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Permalink Reply by Seth Russell on
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Send a copy of the buyers recent appraisal to your Negotiator..its really the only method to defeat the inflated FHA Appraisal. Good Luck!
Seth
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