Quick question, for which I am pretty sure there is a variable of answers. We are purchasing a foreclosure home and are asking the bank for 180k. They did an exterior only appraisal which came back with a value of 237k.
Now, we have several issues with this, especially considering the comps used were for homes nearly half the size, but we will ignore that for now. The bank has now ordered a full walk-through appraisal due to their new “awareness” that this is a vacant home.
So, since the original appraisal value was lower than it most likely should be, we are worried the value will go down to below the 180k benchmark to still qualify for the loan since the home is in somewhat disrepair due to being a foreclosure (we have 20% down).
Can the value of an appraisal go DOWN after an initial exterior appraisal, or only stay the same/ go up? Is there anything we need to worry about?