appraisal report came in lower than purchase price (attorneys, house) - Page 7 - City-Data Forum

clevedark · 08-11-2009, 07:39 AM

In my experience most RE agents could care less how much a house sells for, they just want it to sell, period, for whatever price.

Something smells fishy here.

armx · 08-11-2009, 08:33 AM

In spite of everybody's advise that you are in control, Sweetpotato, you are not grasping and enjoying that position. It is obvious that you like the house more than the "headache" of re-negotiating the price downward and that headache is imaginary on your part.

You have the lender, BofA, giving you an appraisal on the basis of which they will determine what is the 80% loan which will be lower than $417 K that you were planning on. Your downpayment will only be $102 K instead of $123 K.

What more can any buyer want than to have to put less money down and get a smaller mortgage payment per month?? What is the anxiety about?

You don't have a dilemma ... just sit back and relax until the BofA either rejects any efforts to up the appraised value or accept appraisal at $521K (because you were party to the effort of upping it based on your posts). Its only going to be $521K which is still lower than the $540 K you agreed to pay in the first place. It would have been understandable for you to be antsy if you were the Seller in this transaction ........

sweetpotato · 08-11-2009, 05:45 PM

hi, well, we asked for a reduction in the sales price via our agents to make up for the difference in loan amount - 9k, and the seller rejected it. i don't think that was too much to ask considering there's a 30k difference in the appraisal value and our purchase amount. so, should we just walk at this point? we'll be out almost 2k. i spoke with our mortgage rep at bofa and he's not optimistic about being able to make the reconsideration. my husband is getting ready to walk as he's seeing larger houses coming down in price and getting closer to our price range, though perhaps they won't be coming down any lower now. we're already borrowing money to make the down payment and can't afford to make up the difference, so looks like it's not going to happen. do love that house, though.
separately, what do you think about the bergen county housing market - do the numbers look like we're really bottoming out now?

sholden · 08-11-2009, 05:54 PM

Quote:

Originally Posted by sweetpotato

hi, well, we asked for a reduction in the sales price via our agents to make up for the difference in loan amount - 9k, and the seller rejected it. i don't think that was too much to ask considering there's a 30k difference in the appraisal value and our purchase amount. so, should we just walk at this point? we'll be out almost 2k. i spoke with our mortgage rep at bofa and he's not optimistic about being able to make the reconsideration. my husband is getting ready to walk as he's seeing larger houses coming down in price and getting closer to our price range, though perhaps they won't be coming down any lower now. we're already borrowing money to make the down payment and can't afford to make up the difference, so looks like it's not going to happen. do love that house, though.

Run away. Seller's loss.

Quote:

separately, what do you think about the bergen county housing market - do the numbers look like we're really bottoming out now?

Nope. They'll trend sideways or down for a long time to come. Unless another shoe drops on the economy, in which case they'll plummet again.

lookingforhouse · 08-11-2009, 05:55 PM

Borrowing money for down payment?? Get out of this contract and buy what you can really afford.

elflord1973 · 08-11-2009, 07:41 PM

Quote:

Originally Posted by sweetpotato

separately, what do you think about the bergen county housing market - do the numbers look like we're really bottoming out now?

Don't worry too much about missing the train -- it's going to be parked at the station for some time.

It doesn't look as though prices will fall that much further (no more than 10%) and it could take them some time for them to get to the bottom, and they will stagnate for some time.

You'll need to figure out how you want to handle this, but to me, the whole thing just smells really bad. The party who was supposed to be serving your interests -- the buyers agent, seemed to be hell bent on helping the sellers agent get the best price possible.

I think you could do better if you fired your agent, and started over (I guess you have some idea of what to look for when choosing a buyers agent now!)

What's the seller going to do if you walk ? Wait in a declining market, with a listing that is about 15% higher than appraised value ?

PS: I'd also seek advice on the RE forum for filing ethics complaints.

armx · 08-12-2009, 09:42 AM

E..L... has made many good points ... The first one is the most apropos. The seller, most likely, will be coming around to your offer, if they are living in the present and if you and/or your agent stop giving them any further clues as to how much you like the house!

Even if the Seller agrees and you get the house, other points are valid and even before settlement, you may want to pursue them or just intimate that you want to pursue them and see what happens ..

clevedark · 08-12-2009, 11:14 AM

Since you ask, I would walk away. I think you're getting a big break here and you should take advantage and start fresh with another agent. An honest, up-front buyers agent.

I predict you'll find a better house for less money if you start looking this fall. The market slows down then anyway and people are more ready to make a deal. Most people do not put their house on the market in the fall unless they really need to sell it. And most people don't look for a house then unless they really need it.

It's fine to lose the 2K--don't look back.
Good luck.

armx · 08-12-2009, 11:24 AM

The fact that Sweetpotato likes the house should be given credence. And bigger house may not be what is warranted but a similar house for lesser money since s/he is borrowing some of the down-payment.

Losing 2K --- is that the money in investigetion e.g. home inspection, lawyer's fees ...because the deposit money should be safe and returned ..due to financing contingency!!

bluemask · 08-12-2009, 12:13 PM

Quote:

Originally Posted by lookingforhouse

Borrowing money for down payment?? Get out of this contract and buy what you can really afford.

Can'g agree more!

I would not pay more than what the bank appraised.

If you can't convince yourself to walk away, spend a few more hundred $ and hire an independent appraiser. Don't tell him anything, tell him just to appraise the house for you. Most probably you'll see a similar number that bofa had aleady.