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And the FHA Case number assigned to the original appraiser prevents another appraisal from being used.
As an appraiser I find it insulting to have someone suggest alternative comparables when I am not certain they even know what makes a comparable comparable. Not all sales are comparable. The intent in looking at comparables is to determine the market response to the subject. Consequently a comparable must be the most proximate, similar and recent sale available subject to the same external forces as the subject. Assuming the appraiser is competent and ethical (and we can make that assumption because he, as an FHA appraiser, has a minimum of 3 years experience and training and, most likely, has several times that number of years of experience) then he has access to not only every house sale your realtor has he also has access to every house sale that your realtor doesn't have. He is knowledgeable about not just your house and your market but also the overall economics of the area, marketing trends, demographic shifts, and other influences, both direct and indirect, on value. And having devoted the last several years of his life to learning this, someone is going to come off the street and tell him what is and isn't acceptable? He carries a million dollars worth of errors and omissions insurance to ensure his findings are supportable and accurate.
You don't like the way he is killing your deal? Maybe you should be grateful that he is keeping you from overpaying for a house that apparently isn't worth the amount agreed on. This frequently happens with a person who buys maybe 4 houses in their lives buys from a guy who sells lots of houses and knows how to talk the buyer into overpaying. If you go into foreclosure and get hit with a deficiency you will understand the difference $8k makes a bit better.
And to clarify one other thing, briefly. As an appraiser I have never killed a deal. I have, on the other hand, written hundreds of obituaries on deals that died.
I'm guessing from the tone of your post I offended you...I'm very sorry. I didn't mean to offend anyone. This is our first home...or rather would have been and a lot of this is confusing. The bank has been difficult to work with, my attorney doesn't seem much more help and I feel like the builder is playing he said/she said. My comments were based on what our builder told us. I do apologize if I made incorrect assumptions.
We have opted to walk away from this house, as much as it pains me. Our attorney is contacting our builder's attorney at one last shot of them lowering the purchase price. Thank god I found the FHA addendum that states if the house appraises less than the contract price we can walk...even my attorney didn't know that...
We are trying to close on our first home but the appraisal keeps coming in about $8,000 lower than the purchase price. The builder is not budging stating that our upgrades is what the difference is.
What options do we have? Why would we pay more than what the house is valued at? If we come up with the cash, we basically wipe out our savings, plus we don't feel comfortable paying more than what the house is worth. Our amount due at close jumped from about $6,000 to $12,000 now.
I'm guessing from the tone of your post I offended you...I'm very sorry. I didn't mean to offend anyone. This is our first home...or rather would have been and a lot of this is confusing. The bank has been difficult to work with, my attorney doesn't seem much more help and I feel like the builder is playing he said/she said. My comments were based on what our builder told us. I do apologize if I made incorrect assumptions.
We have opted to walk away from this house, as much as it pains me. Our attorney is contacting our builder's attorney at one last shot of them lowering the purchase price. Thank god I found the FHA addendum that states if the house appraises less than the contract price we can walk...even my attorney didn't know that...
Clue: Your attorney and yourself need to READ THE CONTRACT.
This is why you should have a Buyer's agent when working with new construction!
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