appraisal report came in lower than purchase price (buying a house, buying)
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thank you everyone for such informative advice. we really like the house and don't mind paying a little more for it since we're planning to live there for a long time -
As long as you are happy with house that is the only thing that counts. Let the bottom feeders think what they want . You have to please yourself not them.
what do you think of still paying 540k? that's what agents and mortgage rep are still trying to make happen. if they get the 521k appraisal, we can still get a 417k mortgage and go through with the deal at 540k purchase price.
30k extra on a 540k house is really not that much in my opinion... 5% or 6%. Sounds like you have the money, so if you love the house I say go for it.
i'm just wondering if i should negotiate a lower price at this point given the lower appraisal? am i paying ridiculously over market price for this house?
Yes, you should. You are making a huge mistake to overpay for a house in this market. An appraisal under your offer price is a huge red flag. The seller will not be able to sell this house for more than the appraised value -- and that appraised value is going to continue to sink throughout 2009-2011.
If you want to burn $30,000 feel free, but that's really what you're doing here.
[SIZE=3]Given this new information about the home...this will now be a monkey on the sellers back regardless of who is buying it. This information will now be a huge problem for the seller going forward. I think it puts you the buyer in a place of advantage. If you should walk away from this transaction at this point...this seller has to relist and start their process over again in HOPES to find someone who will now pay thier well overpriced house. I'm guessing the agreed upon purchase price is less than the listing price you offered on? Now the seller has to make up their mind on a probable new listing price etc....I'm betting they don't want to see your deal unravel. Your chances are very good I think to renegotiate at this point. If you are a person who looks at their home as more than PURELY an investment (if you have any emotions tied up in this kind of transaction) just weigh your emotional value you have in the property...try and be as level headed as possible....and make the new offer. If you are a person who will for the entire time you live in that house regret your decsion of over paying...move on. It's not worth the future stress when there is such a glut of homes on the market to choose from. Besides...you never know...if you walk away...this home may relist at a price far closer to the appraised value anyway...try & get your agent to sell the idea that the seller is in a bad way now no matter what & it would behoove the sellers to renegotiate with YOU since they have a far lesser chance in getting ANOTHER buyer to come in even close now...good luck!!! I hope you wind up where you WANT....and where is best for you & your family. [/SIZE]
[SIZE=3]Given this new information about the home...this will now be a monkey on the sellers back regardless of who is buying it. This information will now be a huge problem for the seller going forward. I think it puts you the buyer in a place of advantage. If you should walk away from this transaction at this point...this seller has to relist and start their process over again in HOPES to find someone who will now pay thier well overpriced house. I'm guessing the agreed upon purchase price is less than the listing price you offered on? Now the seller has to make up their mind on a probable new listing price etc....I'm betting they don't want to see your deal unravel. Your chances are very good I think to renegotiate at this point. If you are a person who looks at their home as more than PURELY an investment (if you have any emotions tied up in this kind of transaction) just weigh your emotional value you have in the property...try and be as level headed as possible....and make the new offer. If you are a person who will for the entire time you live in that house regret your decsion of over paying...move on. It's not worth the future stress when there is such a glut of homes on the market to choose from. Besides...you never know...if you walk away...this home may relist at a price far closer to the appraised value anyway...try & get your agent to sell the idea that the seller is in a bad way now no matter what & it would behoove the sellers to renegotiate with YOU since they have a far lesser chance in getting ANOTHER buyer to come in even close now...good luck!!! I hope you wind up where you WANT....and where is best for you & your family. [/SIZE]
It is very unlikely that appraiser will change his numbers now, the listing agent should have done that job of feeding him the appropriate comps before he sharpemed his pencil.
As I see it, there is no problem for you purchasing the property for less money if you were prepared to pay $540 K for it. And although it is tempting for you to ask for our opinions, the only opinion that counts is yours because none of us is able to see the property and how it is valued by you.
I am sorry to say, but the advice-taking has to end, my friend. It is time to make the bold decision now.
At the end of the day, the important thing is what the house is worth to YOU.
People bought houses during the boom for inflated prices and the appraisals were playing into that. The appraisals made people feel good, and made many deals go through with flying colors, but it didn't mean good decisions for many people.
If you were willing to pay 540 before the appraisal, then think about what you are willing to pay now with that information in hand.
my real estate agent knew my top price and tried to push me above it for this house. we were in contract on another house for 540k that fell through because that house had a problem with its foundation (basement wall leaning out). this new house we are purchasing listed at 585k and we put in an offer within days of it coming onto the market (just a few days after our former deal fell through). seller didn't want to give it to us for 540k since she purchased for 600k in 2004, plus we put in an offer so quickly.
i don't understand why our listing agent knows our financials. my mortgage rep spoke to her before me about the appraisal report. the listing agent is good friends with my agent. the listing agent's husband happens also to be an appraiser and submitted a report to my mortgage rep to help with the reconsideration. bofa's appraiser valued the house at 510k, which my mortgage rep agreed was probably on the conservative side. he spoke with the listing agent last friday who said she'd give him comps to raise the value, and her husband submitted a report for reconsideration valuing the house at 521k. (this is the exact number we need to get the mortgage we need to make it happen.)
sorry for the flood of info, but i'm just not sure if this is happening the way it should, and if we're way overpaying. i don't mind if we're overpaying by a little since we love the house, but i don't want to be stupid.
i'm just not sure if this is happening the way it should, and if we're way overpaying. i don't mind if we're overpaying by a little since we love the house, but i don't want to be stupid.
It's clearly not happening the way it should. All of these he-knows-her-she-knows-him-he's-the-husband-of-the-other-one relationships should tell you one thing: they are not looking out for your best interests. These guys make money when a deal is done, and they don't really care about the consequences of the sales in terms of the buyers left holding the bag. If the housing bubble taught us anything, it taught is that.
Of course everyone is bending over backwards to try to make this deal happen, to try to make you burn 30K just so the deal can get done. The question is -- why are you even entertaining such a notion?
The seller will not be able to sell his house above the appraised value. People got so used to phony inflated appraised values for so long during the housing bubble, that when a realistic appraisal comes out they start saying things like "oh well, that's really just too low because they are really afraid to overestimate the value ..." It's comical.
Nobody else will buy the house at a price higher than a major, professional bank like BOFA's appraisal value. Why should you? The seller will lower his price to meet the appraisal, if not he's a fool; but better him to be a fool than you.
Never fall in love with something that can't love you back; like a house.
You are out of contract to the best of my knowledge...In order to be one step ahead, one alternative could be, to make a new offer at $525K (shows good faith w/seller split the diff. 50-50) with the appraised value at $510K (assuming bofa appraiser will not change the number) and there is nothing magical about holding the mortgage amt at $417K (unless DP requirement is other than 20%) you can lower that # too. You really don't have to keep your original price for reasons already offered by others.
You hold the key to the decision making -(are in the driver's seat and I understand that it easy to get caught up in things and forget it) so it really does not matter whether listing agent knows about your financing or how she found that out.
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