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Scenario - REO Home in S. Charlotte on market for 2 days, already 4 offers. We win the property. Appraisal comes in low. (35K lower than purchase price).
If you are getting a loan, there should be an appraisal contingency in the contract, if the standard NC contract was used. If you are paying cash, then you had the option when the offer was written to include an appraisal contingency. In the standard NC contract the seller should meet the appraisal price or should be entitled to your earnest money back.
If you are getting a loan, there should be an appraisal contingency in the contract, if the standard NC contract was used. If you are paying cash, then you had the option when the offer was written to include an appraisal contingency. In the standard NC contract the seller should meet the appraisal price or should be entitled to your earnest money back.
I second that. My bank told me the same thing as well.
Scenario - REO Home in S. Charlotte on market for 2 days, already 4 offers. We win the property. Appraisal comes in low. (35K lower than purchase price).
What do we do next?
Well, you can go to another lender, I suppose . . . but frankly, I would walk. If the appraisal came in that much lower, than I would have to assume I was paying too much.
Not enough information. If the appraisal is $35k off of contract price, I would say go back to the bank and negotiate. The bank will want a new appraisal.
I would be curious as to what homes were used in the comp. Bank owned or forclosed properties should not be used as comps.
We do get this problem once in a while. Used to be the appraiser had the sale price and magically the appraised value matched the contract sale price.
Changing agents at this point is useless. This is between the bank and the appraisal. The bank dosen't want to lend more then the house is worth.
Folks bidding on bank owned or foreclosed properties should not get their hopes up. You can get great deals but there is competition out there, hence the 4 offers on this property.
Look for another one.
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