Can a bank reduce what the appraiser says a house is worth? : Eco Answers

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Question by Ed: Can a bank reduce what the appraiser says a house is worth?
I signed a contract on a home for $ 197,900 with an asking price of $ 199,900. The FHA appriaser originally appraised it at $ 210,000, but the bank said the comps were invalid since the home has a basement and the comps did not. The appraiser re-did the appraisal 3 times to try to satisfy the underwritter and came in at $ 198,000. There are only 1 in 25,000 homes in Arizona with basements and they are considered a “premium” since it is much less to cool them in the summer and they are so rare. The underwriter then with the stroke of a pen said the adjustments the FHA appraiser made were not accurate, and said the home appraises for $ 188,000 (because that was the comp for the identical home sold 1 year ago) even though the “identical home” had original cabinets and bathrooms and the home I am trying to buy has new kitchen cabinets, new appliances, new vanity and mirror (in one of the 3 baths) and new solar powered attic fan and sump pump in th e basement.

Is there anyone I can report this to that oversees underwriters or anyway I can request a new underwriter without moving to a new bank (another bank has seen the file and said they would accept the $ 198,000 comp. It’s pretty bad when a fully qualified person can not buy a home he wants in this crappy market.

Best answer:

Answer by A.Mercer
If the bank does not want to give you the loan then the bank does not have to give you the loan. Unless, they are discriminating based on various factors defined by law, they can turn down a loan to you for just about any reason.

It sounds like the bank (like many others) have been burned by trumped up appraisals. Arizona is one of the areas where this happened a lot. The bank does not trust the appraisal and they will refuse the loan. Your only recourse is to find another bank.

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Can a bank reduce what the appraiser says a house is worth?

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