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Ok. Finally my offer was accepted in San Francisco Bay Area. (Very very competitive market).
I offered to put 20% downpayment for 1/1 condo. Also I was above asking price for about $30.000.
My offer got accepted but BANK now did appraisal for same condo and appraisal come very low 60k lower then my price.
Looks like closed sales have not caught up to what you believe is a competitive market.
You can try to renegotiate with the seller to get the sale price down to the appraised value.
You can bring cash money to the closing table to make up the difference between contract price and appraised value.
You can try to find comparable sales which support your contract price. The appraiser won't talk to you. However, you can give those sales to your lender and have the lender pass them to the appraiser and ask for a reconsideration of the value.
You can walk away. I'm assuming your sales contract has an appraisal contingency that lets you out of the contract if the home won't appraise.
Looks like closed sales have not caught up to what you believe is a competitive market.
You can try to renegotiate with the seller to get the sale price down to the appraised value.
You can bring cash money to the closing table to make up the difference between contract price and appraised value.
You can try to find comparable sales which support your contract price. The appraiser won't talk to you. However, you can give those sales to your lender and have the lender pass them to the appraiser and ask for a reconsideration of the value.
You can walk away. I'm assuming your sales contract has an appraisal contingency that lets you out of the contract if the home won't appraise.
I want to buy this condo. Seller don't wont to lower price and also there are many other offers on table
I already tried to do that with lender and they are thinking about it. I have contingency for appraisal.
Its so damn hard to buy anything in bay area
Willow gave you great advice, actually your only options. Sad to say, fish or cut bait. You will be followed by continued heavy competition unless you can find a way to get to a seller before they put the home on the market.
The Bay area has been overvalue for a bit now. Ultimately, your only option may be coming up with the shortage yourself. It doesn't hurt to try to find another lender but best thing to do is to talk with your agent to see if you still have time to shop for lender.
This bay area and San Jose is crazy market and that is. I don't know. This buyer purchased condo for 40% lower price just 2 years ago and now he is asking for 40% more Who make that much ? Wtf.
Crazy.
I know it's very frustrating. I know what it's like to be squeezed out of a competitive market, but never by 60K! That would be a game ender for me. I would probably start examining my ties to the area, but that's me and not everyone can do that. I moved almost 20 miles about 30 years ago after experiencing your dilemma. But now, I am in a desired outer suburb of DC, while others are buying 30+ miles south or west.
A word of caution, what the seller paid should never be part of the buyer's equation. What if he had inherited the property, or restored it? It sounds like he found a bargain and has every right to collect on it if others are willing to pay.
This bay area and San Jose is crazy market and that is. I don't know. This buyer purchased condo for 40% lower price just 2 years ago and now he is asking for 40% more Who make that much ? Wtf.
Crazy.
Yes it is.
2012-2013 was the best time in recent history to buy in costal California, prices were artificially low. Who makes that much, those not willing to listen to the media.
The appraisal should be a tool to help you make a decision. $60,000 under on a $1,000,000 place is one thing, but 60,000 on a $400,000 is another. Do you really want to pay that much over the value a professional appraiser gave you. If you feel that the value is wrong, then pay for another appraisal.
I won't have a problem paying over an appraised value if that is what I value a property at. Coming up with the money to do so is another issue.
Last edited by thelopez2; 02-25-2015 at 07:23 AM..
This bay area and San Jose is crazy market and that is. I don't know. This buyer purchased condo for 40% lower price just 2 years ago and now he is asking for 40% more Who make that much ? Wtf.
Crazy.
That's because some of the RE in Bay were as much as 50% over value before the crash. Some feel that it's heading there again but it still has ways to go. I am guessing you are competing with a lot of the "cash buyer" these days.
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and also there are many other offers on table 
