Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
we're buying a house and the appraisal came in below our purchase price. has anyone had experience with this these days? what happened? my real estate agent and mortgage rep told me this has been happening a lot. we're in the middle of doing a reconsideration. i'm nervous because we won't be able to make up the difference. what usually happens in these situations?
(a) the seller lowers the price to the appraisal value or
(b) the buyer walks away (your contract almost certainly has a clause that says you can walk away if you are unable to obtain financing to purchase the house at the agreed price)
The seller would be foolish not to agree to lower the price; and you'd be foolish to pay more than the appraised value.
Good luck! If not don't worry, there are plenty of fish in the sea!
(a) the seller lowers the price to the appraisal value or
(b) the buyer walks away (your contract almost certainly has a clause that says you can walk away if you are unable to obtain financing to purchase the house at the agreed price)
The seller would be foolish not to agree to lower the price; and you'd be foolish to pay more than the appraised value.
Good luck! If not don't worry, there are plenty of fish in the sea!
we're buying a house and the appraisal came in below our purchase price. has anyone had experience with this these days? what happened? my real estate agent and mortgage rep told me this has been happening a lot. we're in the middle of doing a reconsideration. i'm nervous because we won't be able to make up the difference. what usually happens in these situations?
The seller could request another appraisal be done if they feel it is too low. Could be tricky.
You can still go ahead with the purchase provided that you can still get a loan. What did the lender say, did the lender say you need to come up with more at closing due to the appraised value?
I guess you can't do more than one appraisal on the same property for the same lender. Mr. Obama fixed it. I might be wrong.
You could do as many appraisals as you like on the same property. If I'm the seller, I pay for my own appraisal and if it comes in low but higher than the other appraisal we split the difference on the price.
This situation happened to us last month. From my experience these are your options:
1) file an appeal
2) renegotiate with the seller (split the difference 50/50, etc)
3) get another lender and another appraisal (time consuming)
4) walk away
Our lender and real estate agent recommend an appeal on the appraisal. They composed comparable houses in the neighborhood to try to get the appraised price raised. This process took 2 weeks to get a response, apparently there are alot of appeals going on. And at the end the appraised price did not move at all. It was such a waste of time.
We ended up splitting the difference with the sellers and having to come up with more money at the closing. If you really like the house and don't mind paying more than appraised price, this is what I would recommend. Check with your lender first to see if they will still lend you money if you'll come up with the difference. Don't be afraid to renegotiate, because if the sellers decide to sell it to someone else chances are the appraisal will come back more or less the same.
This happened to the seller of a home we are currently interested in. Buyer couldn't afford any more downpayment and seller refused to lower the price so that the buyer could qualify with the appraisal. Fast forward 6 months, home was just re-listed for like 30K lower and is still not selling! The seller should work with you.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
