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Home Sale Spoiled by FHA Appraisal

It looks like FHA's appraisal policies have sunk my chances for selling my property in Dale City. Under FHA's new appraisal rules, the appraisal stays with the house for six months! So a ridiculously low appraisal has ruined the value of my house. We had a contract on the house and the buyers wanted an FHA loan. The appraiser selected Bargain Properties to use as comparables: a short sale, a couple of foreclosures, and another house that sold twice within two months. He used both sales on that same house as separate comparables, even though the first was about $30K cheaper than the second. Obviously, the first sale was a tremendous bargain for someone who turned around and flipped the property for a much higher price. So I think the appraiser should have excluded the first sale; it's low price was not indicative of current market value. That one combined with the short sale and foreclosures (which are also not indicative of true market value since they are distress sales) brought down the average and so the figure he came up with was $32,000 lower than the agreed-upon selling price.

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