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Denver Real Estate

Put an offer in for a property in Denver right before the shutdowns on 3/29 set for a 45 day close putting it at May 12th.

Worked with a few lenders and locked in a rate 5% Down Conventional at 3.125%. Inspection was resolved etc. but the appraisal came in low. Offer price was listing at 265k and appraiser set it at 251k. The seller will now only come down to 262k if we close earlier (first of all what?lol)

Honestly I thought it was a little low as well as the bank too but the appraiser won’t budge. I see mistakes from both parties.

The appraiser used comps older than 6months (doesn’t look like they adjusted for age), all the properties he used as comps are outdated, and the sqft were mainly low (850sqft) then adjusted for being less by a bed/bath/sqft. The 1-3 comps are typically the ones that are weighted towards the appraisal. The appraiser used all the lower end properties for comps 1-3.

The seller/agent provided non-comparable comps because they either had a basement or a garage (mine have neither). For that area all properties at 265k+ all have one or both of those features. Pretty sure this is a unit a someone tried to flip and fixed a lot of cosmetic things. However the appraiser also mentioned cosmetic upgrades don’t equate = higher appraisal value.

I believe based on comps I see and found that this place is probably worth around 255k. Still 10gs in difference and the seller doesn’t wanna come down at all unless we close earlier (idk why they thought that would work).

At this point I can walk away, try to go thru another lender (potentially losing my great rate/negotiated closing costs/pay for a shit appraisal), pay the difference (which I can’t afford), or find something else which I rather not due because I need to relocate to Denver for work ASAP.

What are my chances with another Lender? How has other appraisals in Denver been going? Is this common? How old of properties can an appraiser use for comps?

submitted by /u/Gemini-Gypsy
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source https://www.reddit.com/r/RealEstate/comments/g9h0bo/denver_real_estate/
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