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Old 03-08-2010, 07:09 PM
 
Location: Charlotte, NC
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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).

What do we do next?
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Old 03-08-2010, 07:13 PM
 
314 posts, read 445,284 times
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Quote:
Originally Posted by sheenie2000 View Post
Scenario - 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?
Sheenie,

Can you not just show the bank or the seller the appraisal report and request a reduction in the selling price?
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Old 03-08-2010, 07:38 PM
 
Location: Union County, NC
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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.
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Old 03-08-2010, 08:19 PM
 
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Quote:
Originally Posted by south.charlotte&union View Post
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.
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Old 03-08-2010, 08:22 PM
 
Location: Charlotte, NC
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Our agent told us to go to another lender. And has continually pushed his in house lender since before this transaction.
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Old 03-08-2010, 08:25 PM
 
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Get another agent.
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Old 03-08-2010, 08:26 PM
 
1,139 posts, read 2,183,141 times
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Quote:
Originally Posted by sheenie2000 View Post
Our agent told us to go to another lender. And has continually pushed his in house lender since before this transaction.
I would get another agent. Unless you really want the house, then....
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Old 03-08-2010, 09:33 PM
 
Location: State of Being
35,883 posts, read 71,304,784 times
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Quote:
Originally Posted by sheenie2000 View Post
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.
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Old 03-09-2010, 03:30 AM
 
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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.
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Old 03-09-2010, 03:37 AM
 
604 posts, read 1,202,075 times
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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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