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Unread 07-07-2010, 07:12 AM
 
706 posts, read 985,084 times
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Question if an appraisal comes in under, what is the normal average time period allowed for

if an appraisal comes in under, what is the normal, average time period allowed for buyer and seller to evaluate the results and communicate back and forth between the agents.......cat and mouse game?
(so that the closing does not have to be delayed and just assume the appraisal is done 10 days before the closing date)

thanks.
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Unread 07-07-2010, 07:41 AM
 
Location: Austin
3,916 posts, read 6,525,187 times
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There is no "normal" time frame. Some sellers agree to drop their price immediately upon a low appraisal. Some sellers refuse to drop it at all. It just depends on how your negotiations have gone up to this point in the process and whether or not you have seller who want to sell their home, or just sit and wait for someone to pay cash for the difference.
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Unread 07-07-2010, 07:57 AM
 
Location: Tempe, Arizona
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What does your contract say about it? Our contract requires the buyer to make a decision to cancel or not within 5 days of receiving an appraisal value under sale price. Have you asked your agent?
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Unread 07-07-2010, 08:13 AM
 
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Quote:
Originally Posted by rjrcm View Post
What does your contract say about it? Our contract requires the buyer to make a decision to cancel or not within 5 days of receiving an appraisal value under sale price. Have you asked your agent?
yes, and here it is:

"Usually a day or so to decide. The quicker a solution the better"

sure on a quick solution but I'd think more than 1 day. The appraisal in July 8th and closing is July 20th.
Seems to me that the buyers made an offer because they wanted the house and the seller accepted, so one day seems not enough to give each side a little room for "thinking". My buyers are out of state so they are not driving around looking or accidentally finding other houses they like.
They have done things to push this matter quicky, changing FHA to conventional, find one day, look the next, and offer the next.
I suspect they want to get moved before school starts though my agent does not know the composition of the family. A couple is all she knows.

I'll ask about my contract.

------------------------------------------------

FalconheadWest: It just depends on how your negotiations have gone up to this point in the process

.......well, there have been no negotiations, they offered the day after viewing and I accepted the same day as the offer. However, I've got some repairs etc. that have turned up in the inspection and termite inspection, and my agent says all those are on me, so it will take time and maybe $500 to get it all done.
Well my agent did some negotiating on the phone. She told the other agent my house was priced right and seller not in a position to move too much and a clean offer would help the seller's decision. They were approved for my asking price, but offered 5.7% lower and I accepted.
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Unread 07-07-2010, 08:26 AM
 
Location: Tempe, Arizona
4,511 posts, read 6,387,967 times
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Quote:
Originally Posted by naeem5 View Post
yes, and here it is:

"Usually a day or so to decide. The quicker a solution the better"

sure on a quick solution but I'd think more than 1 day. The appraisal in July 8th and closing is July 20th.
Seems to me that the buyers made an offer because they wanted the house and the seller accepted, so one day seems not enough to give each side a little room for "thinking". ...
It must be your engineer background, you are way over analyzing everything. It is not uncommon to get a decision very quickly. The buyer knows what they can do and so does the seller. There's not much to think about.
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Unread 07-07-2010, 08:44 AM
 
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The buyer wanted the house or they would have passed it up. I doubt they want to pressured into a decision within 24 hours when it took them 4 months to find my house.
I was "verbally intimidated" into accepting that the offer was GOOD, clean, TAKE IT. I had no time to think....15 minutes in a MacDonalds.
My listing was 1 day old. It was the first offer. Since we won't know the appraised amount if it comes in over, I'll never know if, or how much $, I left on the table by taking the first offer to come in after 1 day of advertising. If it is $5000 over, then I could have countered $3000 higher and if they had accepted, then we'd still be under the appraisal. So if the appraisal is 5000 over, and according to my agent we won't be told the number, just an OK, then no $ was left on the table. If 10k+ over then maybe I jumped the gun.

My agent is not sure the contract, she thinks 72 hours is allowed, for either buyer, or seller or both.
She's on the road at this time.

new thread being started: agent, inspector, and termite inspector amid controversy.

note: never worked a day in engineering and GPR around 3.0 was part of it. I sucked in the engineering and computer courses. I have a tendency to consider the worst that can happen, so when it does, I'm more prepared and there are no surprises. Some people find this as a fault, and some do not.
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Unread 07-07-2010, 08:44 AM
 
Location: Sunshine N'Blue Skies
13,303 posts, read 12,449,222 times
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The two cases I know of ....One the the buyers overbid by 20K from the appraised value that came in. However, they paid it as they knew it was a better buy then what they would have gotten for the same home in NJ. ( Lucky sellers)
The second one was our own home, the appraisal came in six thousand less. We thought about it and knew our first time buyers probably would not be able to come up with it. We were ready to sell, and we didn't want to loose them....We came down the six thousand. The deal went smoothly through from there.
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Unread 07-07-2010, 08:50 AM
 
3,312 posts, read 4,020,758 times
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Quote:
Originally Posted by naeem5 View Post
My listing was 1 day old. It was the first offer.
ROFLMAO.

Your house was not on the market for 1 day.

More like two months.

And you were "verbally intimidated"? Seriously?
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Unread 07-07-2010, 09:59 AM
 
Location: Olympia
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Your agent is not sure of the contract? That's scary. The contract should spell out the time frame the buyers and sellers have to come to agreement on how to proceed after a low appraisal. I would recommend you pull out your contract and read it, if your agent doesn't know the time frame.
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Unread 07-07-2010, 10:07 AM
 
3,312 posts, read 4,020,758 times
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Quote:
Originally Posted by Sandy Nelson View Post
Your agent is not sure of the contract? That's scary. The contract should spell out the time frame the buyers and sellers have to come to agreement on how to proceed after a low appraisal. I would recommend you pull out your contract and read it, if your agent doesn't know the time frame.
Actually, our PA's (Indiana) do not specifically address appraisals - typically, most agents insert this verbiage under "additional conditions": "Property must appraisal at or above purchase price."

I've never seen a contract written that specifically addresses time frames regarding low appraisals - not saying that it's not a good idea to have it in there especially since appraisals have been a problem as of late. It's just not done that way here.

I do agree though that an agent should know immediately how it's addressed (or IF it is) off the top of their head - that's pretty much standard operating procedure.
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