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Appraisal Came in 10K under contract price

I am under contract for a new construction in a multiple-unit building, and the appraisal came in under the contract. I thought I had a good deal, even with the contract price. Some details:

  • Contract started 12/26
  • The listing price was $549k
  • The contract price was $535k
  • The appraisal came in at $525k
  • There are 12 units, only 4 are under contract at the moment

It appears to me that the comps used in the appraisal are off, so we can potentially appeal the appraisal, and my agent agrees, but others have said that's not going change much. The developer said they will not reduce their price, but I was told that's a very bold statement to make, and that they may actually do so if threatened to leave the contract.

It's my understanding that they don't want to sell too low, because it will impact every unit in their development moving forward. i do not, however, want to pay $10K out of pocket.

How likely is a reappraisal going to change things? Will the developer really not budge, especially since buying season is about to hit?

submitted by /u/appraisalguy
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source https://www.reddit.com/r/RealEstate/comments/evxqmf/appraisal_came_in_10k_under_contract_price/
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