Low Appraisal Killing The Deal? Write a Rebuttal Letter!
The market is picking up and deals are being made. But what happens when an appraisal on the property just doesn't mesh with the contract price?
Buyers and sellers should know that they can formally appeal an appraisal that has come in with a lower price than anticipated. While the number of appeals that actual work may be slim, these "rebuttal letters" can point out discrepancies in the comps that were used, (haven't we all seen a comp thrown in that isn't even remotely related to the subject property?) and/ or challenge the experience of the appraiser and possibly keep a deal alive when the borrower may not have enough cash on hand to make up the difference between the appraised value and the contract price.