Deal Hinges on Appraisal But There Are No Good Comps
I'm in contract again and everything looks good. The next thing that's going to happen is the appraisal. I'm worried about it because there are no good comps nearby. The last time I was in contract, for $259,900, the appraisal came out to $259,000. Now I'm in contract for $239,400. It's only six months later. So you would think there'd be nothing to worry about. But the buyer's loan officer was concerned that there are good comps. I assured her there were, but truthfully, the first appraiser had to rely on comps not close by, and when we were pricing, we had to go far or else do a lot of adjustments up and down for the ones we used nearby. The thing is, I'm in a rural area. There are only a thousand people in my whole town, so there are not a lot of things for sale period, especially properties just like mine. I have a ten acre horse farm with a nice house that only has one bathroom and I have a horse barn you could live in. There are nicer houses with more bathrooms on less acreage or with no barns or houses with more acreage and ramshackle barns, houses on two acre lots and dairy farms on a hundred acres. Nothing exactly like mine. But if you just go by the data, square footage, number of baths, number of outbuildings, mine might APPEAR to be lower in value. Until you actually go and see them in real life. Which was what my husband and I did when we priced it. I know I am priced for the market because I've been under contract three times in one year, four if you count the one that fell through almost immediately due to a personal problem the buyer had. Two times for the full asking price (when it was priced higher) or close to it. So the thing is, I'm worried this latest buyer won't be able to get his mortgage because there are no good comps that the appraiser will be able to show to validate his opinion. Thoughts please.