Missing counteroffer creates an appraisal problem; what do buyers do next?

Q: We just learned our bank appraisal on the property we are buying mirrored the value of our purchase offer. Unfortunately, we received a counteroffer for $25,000 higher, which the appraiser never received. So the appraiser turned in his appraisal to our bank at the lower dollar amount that we offered initially. We did not sell our current residence. So, money is tight on this purchase, and we cannot and should not pay the difference between the lower appraised value, and the seller’s counteroffer we all agreed upon seven days ago. We are due to remove our appraisal contingency within 10 days, and our loan contingency by Day 12. The loan officer and her bank manager know that it was their responsibility that the appraiser receives all the information regarding a sale — including a counteroffer. According to the lenders, they cannot ask the appraiser to change his appraised value after the fact because of a price change.

The seller’s broker who provided access for the appraiser has his business card. However, the appraiser is not responding to repeated requests by the seller’s broker to change his appraised value. Do we go to war, or surrender the property under contract?

A: Before the shady real estate appraisals coming out of the S&L crisis, the dot-com bust and the Great Recession, the appraisers might change their evaluations. Fast forward: Someone in this transaction needs to step up, while others step back. For example, a Supreme Court justice proclaimed President Roosevelt had a secondrate intellect and a first-class disposition. The country didn’t need an intellectual, nor do you. Now, one or both of the agents involved might have a similar temperament required to communicate options effectively. As in: Cancel the current sale, and the sellers wait for another offer, transaction, appraisal, and closing. Or buyers and sellers extend the appraisal and financing deadlines while switching appraisers or lenders. All the while, keeping the close of escrow date intact. The sellers’ listing broker is a gatekeeper, spokesperson and adviser. This seller’s agent also acted as a diplomat by contacting your appraiser. Chances are he’ll diplomatically advance his sellers’ cause by helping yours.

Have a question? Know someone who is thinking of moving? Full-service Realtor Pat Kapowich provides turnkey services including relocation, staging, market analysis and strategic planning. 408-245-7700 or Pat@ Siliconvalleybroker. com. Broker License 00979413.