Unfortunately, the appraisal put the house's value at just under $380,000. The seller wouldn't budge on price. Linda had a sizable downpayment but still needed to find a way to close the appraisal gap. She received help from family members and was able to take a loan out against her 401K to make up the difference. She plans to move into the new house later this spring.
But not everybody has the ability to tap friends and family or investments.
LOs, what has been your experience with the appraisal gap? Have you lost deals because of it? What advice are you giving your borrowers?
Finally, are appraisers pricing homes appropriately in such a seller's market, where bidding wars break out more often than not? As always, you can reach me anonymously at jkleimann@housingwire.com
James Kleimann
Managing Editor, HousingWire
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