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Is it normal to receive a request for 2 appraisals on my home before selling?

by petecarlson1269498 from Newport Coast, California. Oct 21st 2013 Reply


Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

One appraisal will help you determine the market value, which you can use a guide, in cooperation with your realtor.

Oct 21st 2013
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Jason Robinson (CFIsupport)
#56 ranked lender in Georgia - 106 contributions

Is the appraisal being requested by the lender for a Jumbo loan above $417K?

Oct 21st 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

Depends on the details, many larger loans require two appraisals - or if there are unusual features to the home that sometimes triggers the need for another appraisal. It definitely does happen, but usually at the request of the buyers lender.

Oct 21st 2013
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Yes Jumbo, above $417. I am happy with the appraisal, can i deny the request and seek new buyers or must i adhere to the request.

Oct 21st 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

Get legal advice from an experienced real estate attorney, but if the buyer needs that appraisal and you aren't cooperative I would guess you are "obstructing" their purchase.

Oct 21st 2013
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Jason Robinson (CFIsupport)
#56 ranked lender in Georgia - 106 contributions

1 in the hand is better than 2 in the bush when it comes to buyers. If you're happy with the contract sales price and first appraisal, I would suggest having the second appraisal done. Best case is it will come back satisfactorily since value has been established by one appraisers opinion; worst case if it comes back lower the buyer will be responsible to put down more money to meet the contract price. If not you both can walk away then. Good luck!

Oct 21st 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

It depends on several factors.. typically, if your home is in the jumbo price range, then most lenders will require 2 appraisals. Also, if you're an investor, and you have had this home for less than 90 days, then the buyers lender will require 2 appraisals... And then another trigger could be the property type or irregularities.. If the lender see's something in the first appraisal they didn't like, then the lender has the option to ask for a 2nd appraisal. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Oct 21st 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

With Some loans it can be especially if it is a Jumbo loan.

Oct 21st 2013
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Bill Dunger (billdunger)
#18 ranked lender in Washington - 35 contributions

Most likely it is a Jumbo loan eventually having the servicing sold thus the bank purchasing it requires two appraisals, which is passed down to your lender...natually called an overlay.. Pretty common when your working with correspondent lenders and brokers.

Oct 21st 2013
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Stacey Nielsen (Unitywestlending)
#909 ranked lender in California - 123 contributions

Normal? No. The need for two appraisals arises in some occasions as @Phildu stated in regards to #Jumbo Loans, previously. Depending on the scenario there are some unique situations that will call for a second appraisal. However, 2 appraisals is not the normalcy or standard practice.

Oct 21st 2013
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Charlie Sparks (CharlieSparks)
#8 ranked lender in New Mexico - 401 contributions

Two appraisals can also be required if you are selling a home you recently purchased and your sales price is 20% or more higher than what you bought it for.

Oct 21st 2013
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Mike Silkworth (msilkw_195_870)
#31 ranked lender in Michigan - 531 contributions

Per your response, you are being asked for a second appraisal because they loan to buy your home is a Jumbo - so no need to address the possible reasons for a 2nd appraisal. It is likely that any other buyer will have their lender make the same request. So no reason to throw away an buyer that made an offer you found to be acceptable. If the second appraisal comes in low then there are a few options - (1) the buyer can put more money down to satisfy the lender (2) the buyer can request you to re-negotiate the price and you would do so (3) you could reject a price drop request and seek other buyers. This is normal and based on your contract a second appraisal request may not give you the right to reject the accepted offer and seek other buyers - TALK to your REALTOR. Good Luck!!!

Oct 21st 2013
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Kiernan Brown (KiernanBrown)
#50 ranked lender in Michigan - 149 contributions

It is common for a Jumbo Loan to require two appraisals. I understand that you may be happy with the first appraisal. However, the buyers lender may be requiring the second appraisal, and many times if one lender asks for a second appraisal, so will other lenders. I recommend completing you current transaction.

Oct 22nd 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,660 contributions

YES... it is common depending on a large variety of circumstances. You've signed a purchase contract... be careful of breaking it. There could be consequences.

Oct 22nd 2013
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