I have an issue with a high bank appraisal. Home will never sell at the bank's perceived value
Home is a short sale, HUD is the investor(PNC is the bank).
Bank Appraisal #1 came in high, we requested another. Bank Appraisal #2 also came in high($10k less than first). We continued to market home at price that would meet banks required net-NO OFFERS. While we were marketing home, winterization came in and caused damage to house-bank refusesdto decrease value of home based on the change of condition.
We reduced the price below the required net and received an offer.
We approached the bank and they are not willing to consider offer because it is below the required net.
Any suggestions?
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Hi, Tom. Perhaps I'm heading down the wrong path, so correct me if I'm wrong, but if HUD is the investor you are shorting an FHA loan, right? I'm surprised you were able to get two full appraisals done so close together, so kudos on that. There is a procedure to disputing the appraisal (I think there is even a form or directions on their website) but quite frankly, it seems to be an exercise in futility. I had one where she used active listings and the only good comp was a ranch when colonials are the prevalent style. Nonetheless, you can ask for a variance but the best I've seen is 82% of (what the appraiser has deemed ) Fair Market Value. Perhaps others here have gotten better, but govt guidelines are sometimes a tough nut to crack. Good luck!
When does your BPO expire? You may have done this already but I would send in a full formal BPO dispute...3-6 SOLD comps in the last 90 days within a 1 mile radius, phtographs of damage/dirt/grime -Anything materially effecting the property value. A contractors bid (or two) showing the cost of the damage and a formal letter from you as the listing agent explaining market conditions (declining, marketability issues etc...WHAT the property value should be and WHY you can't get a higher price for it-I would include any MLS history reports showing price reductions and any showing logs & feedback reports supporting your market analysis etc.)-lastly request that they either re-adjust the price to reflect true market value in it's current condition OR request a new BPO. Be sure that if they do perform a new BPO that you are there for the appointment with the contractors bids, photos etc. so that the BPO agent is aware of the issues that impact their BPO value. You can accomplish this by simply taking the lock box off the property so they have to call you to be let in. Good luck & let us know how it turns out!