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Hi everyone. I was putting an offer on a FSBO. Im about to sign the P&S. The questions is. What if the bank appraisal does not come back for the asking price? Do I have to come up with the extra money? Also, can you put something in the P&S pertaining to that? I dont have a realtor to ask since it is FSBO. Thanks Mindy
Tread carefully. I have found the FSBO's always think their homes are worth more than they are and in this market this could be tricky. I had a similar situation a few years ago - condo didn't appraise and the homeowner wouldn't budge on the price. Even though we had already paid for inspection and pest inspection, I walked away from the deal because I wouldn't buy a home worth more that it was appraised at. Months later he sold the condo to someone else for almost $10K less than I had been willing to offer so he really lost on on the deal and I think I made a smart move not buying that one!
Hi everyone. I was putting an offer on a FSBO. Im about to sign the P&S. The questions is. What if the bank appraisal does not come back for the asking price? Do I have to come up with the extra money? Also, can you put something in the P&S pertaining to that? I dont have a realtor to ask since it is FSBO. Thanks Mindy
If you don't have a realtor representing you as the buyer, then you should consult with a real estate attorney.
Location: Halfway between Number 4 Privet Drive and Forks, WA
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If you put in the offer at said price without an appraisal contingency, yes, you would be coming out of pocket for the difference. However, if you're requiring a mortgage, the lender won't lend you more than the house is appraised for, even if you do decide to pay out of pocket the inflated price. I would consult a re attorney.
Hi everyone. I was putting an offer on a FSBO. Im about to sign the P&S. The questions is. What if the bank appraisal does not come back for the asking price? Do I have to come up with the extra money? Also, can you put something in the P&S pertaining to that? I dont have a realtor to ask since it is FSBO. Thanks Mindy
Mindy, just because it is a FSBO doesn't mean you can't have a Realtor representing you. Sounds to me like this kind of expertise might be of help to you.
Mindy, just because it is a FSBO doesn't mean you can't have a Realtor representing you. Sounds to me like this kind of expertise might be of help to you.
Mindy regularly comes here to ask the resident Real estate agents for information and advice that she feels she doesn't need to pay for. She wants to get a lower price by not hiring someone to represent her, yet clearly doens't have the experience & expertise needed to do it right. Of course, none of us actually knows her exact scenario or situation, so any advice she gets here is general at best.
Hi everyone. I was putting an offer on a FSBO. Im about to sign the P&S. The questions is. What if the bank appraisal does not come back for the asking price? Do I have to come up with the extra money? Also, can you put something in the P&S pertaining to that? I dont have a realtor to ask since it is FSBO. Thanks Mindy
It all depends on the wording of the agreement you strike with the seller. At the end of the day, the simple answer is, yes, if the appraisal is for less than your agreed upon price, and you still want to buy the house, then you will have to come up with the additional money. Because your mortgage lender isn't going to lend you more that the agreed upon percentage of the home's value.
Mindy regularly comes here to ask the resident Real estate agents for information and advice that she feels she doesn't need to pay for. She wants to get a lower price by not hiring someone to represent her, yet clearly doens't have the experience & expertise needed to do it right. Of course, none of us actually knows her exact scenario or situation, so any advice she gets here is general at best.
I agree with both Bill's (Captain and Keegan). The verbiage you need to use needs to be specific so you need to get an agent and pay them a fee to help you out, or hire an attorney.
I have no problem with people representing themselves, but I do find it odd that you are asking for free contractual advice. We really can't help you effectively with something that IMPORTANT.
You may want to try and find a C-CREC or ACRE in your area who will charge you an hourly rate or flat rate to do transaction management for you. It would be worth your while.
Ask a real estate agent or attorney if they can represent you for a flat fee. As was pointed out, even if it is a FSBO does not mean you can not have an agent.
If its a matter of price, remember that value is far more important. Would you defend yourself in court to save a few bucks on an attorney?? Are you going to skip all the inspections and due dilligence on the home as well??
As for the appraisal matter, a lender will not let you borrower over 100% (at most) of the lower of the sales price OR appraised value. If you can only get 90 or 95% financing, they will also base that on the lower of the sales price OR appraised value. So you will have to pay the difference yourself.
If there is an appraisal contingency on the contract you may be able to back out.... but is this the kind of guessing and hoping you want on one of the biggest financial transactions of your family's life? Don't lose dollars to save pennies.
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