Really Low Appraisal, Help!

[Salsa]

A contract for $160k and an appraisal that comes in at $120k! wow! quite the difference.

That was our thought! Charlotte market is really hot right now. Houses that price go in a day since so many people are moving here.

 

[NachoPerito]

That was our thought! Charlotte market is really hot right now. Houses that price go in a day since so many people are moving here.

We just appraised one yesterday, went for $70k over asking. Luckily we were able to find a new pending sale within the past 48 hours a block away. Our prices were stagnant from last August till January, but just jumped again by 6-7% in the past 30 days. Hard to keep up.

 

[Salsa]

We just appraised one yesterday, went for $70k over asking. Luckily we were able to find a new pending sale within the past 48 hours a block away. Our prices were stagnant from last August till January, but just jumped again by 6-7% in the past 30 days. Hard to keep up.

That's a big jump! Is this is charlotte?

 

[NachoPerito]

That's a big jump! Is this is charlotte?

Nope, sorry

 

[Salsa]

I'd be curious if your home was listed through the MLS? If so, what has your agent said about the pricing?

2 bedroom's are tricky. Lenders want to see 2 bedroom comps. No way around that. I never appraiser a 2bedroom home w/o having at least one 2 bedroom comps. Saves a lot of time when the lender doesn't have to come back asking for one.

We do not have it on MLS. I posted it on Facebook and got a few buyers through that! Market is crazy good here is why I was surprised the low price. The neighborhood could be better but even in the not so good places houses are going for 100k for dumps!

 

[Salsa]

I will add, that's a pretty wide spread for sale prices. You mention Charlotte - a decent sized city. If you're within the city, I would think an appraiser would be able to find more similar "comps" (maybe not?)

There are more comps just like mine in a trendy neighborhood only 5 minutes away but the market is crazy different. Those go for 200-400k for 2bed 1bath!

 

[bnmappraisal]

That was our thought! Charlotte market is really hot right now. Houses that price go in a day since so many people are moving here.

We do not have it on MLS. I posted it on Facebook and got a few buyers through that! Market is crazy good here is why I was surprised the low price. The neighborhood could be better but even in the not so good places houses are going for 100k for dumps!

I definitely don't know your market, but (again) generally speaking, just because you have an offer doesn't mean it's worth that

Literally across the street from me, I watched a "flip" (completely renovated, I watched all the workers - roofers, kitchen/bath guys, city inspectors, etc) come and go for months. It went under contract TWICE and both fell through "due to financing" (I actually knew the broker and he told me "it didn't appraise"). And then a CASH buyer came and bought it. She's happy with it, but .... doesn't mean she paid market value for it. But I'm sure it's a "comp" now for others in the neighborhood

 

[bnmappraisal]

There are more comps just like mine in a trendy neighborhood only 5 minutes away but the market is crazy different. Those go for 200-400k for 2bed 1bath!

My last house (4+ yrs ago) that we sold ... had "comps" literally less than 2 blocks away BUT ... because they were in a different "neighborhood" (market - yes, even just 2 blocks away; other side of a busy street) were not "comps" to my house

I have a few neighborhoods in my market(s) that if you cross certain streets/boundaries can definitely have 6 figure differences

 

[bnmappraisal]

I'm not trying to beat you down or anything like that, Salsa. I'm just trying to give you our (appraiser's - at least mine) perspective when looking at "comps"

 

[Salsa]

My last house (4+ yrs ago) that we sold ... had "comps" literally less than 2 blocks away BUT ... because they were in a different "neighborhood" (market - yes, even just 2 blocks away; other side of a busy street) were not "comps" to my house

I have a few neighborhoods in my market(s) that if you cross certain streets/boundaries can definitely have 6 figure differences

Same here! It's crazy how different things can be a street over!!