After working with a nice young couple, we found a home to write a PA on. Yes, they said they could afford more than they actually could, but this was cleared up during pre approval. After settling on a price, we had issues with the appraisal. The appraisal came in $5,000 too low, on a $220k sales price, on an FHA appraisal. I raised Hell and after 2 appraisals, the underwriter would not budge. Because the Buyer's back up home was handled by a different Realtor ( family purchase) we already were pushing the closing date out 2 weeks. The Seller's had moved out of the home and were furious. I negotiated a reduction in sales price from, he didn't "feel" that it was the right thing. The deal was dead. The FHA appraisal stays with the home for 6 months, the Listing Realtor had to go Conventional. The home was sold for $217,000. After 1 month , the home was on the market again with another Broker and sold for $230,000. I lost my commission. The home , in this market, flipped within 2 months and for $15,000 more than the FHA appraisal, that I fought, tooth and nail against.
Is the system broken ?? What are your thoughts??
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