I knew it couldn't be this easy (SMALL UPDATE) at bottom

So we found a house, signed contracts, had inspection, mortgage pretty much done, and now the appraisal comes in $30,000 LESS than the price we agreed on.

DH and I felt very comfortable with the price and believe we are getting a lot of house for our money.

Now we wait to see if the homeowner will lower the asking price, or we could split the difference (which that $$$ would have to come out of our pocket) or we walk away

Dh says that this could potentially work out very well for us and we could get the house for cheaper than we accpected but we were soooooo close, planning on closing next week

Thankfully DH is the mortgage broker and realtor so I feel confident having him take care of everything but I can't shake this sad and nervous feeling.

Anyone ever experience anything like this? What was your outcome? Any encouraging words for me

Message edited 6/26/2009 10:44:56 AM.

Re: I knew it couldn't be this easy

I have no advice but wanted to offer you some . It;s a good thing your DH is a realtor/broker and seems optimistic. Hopefully, they will come down on the price and it will all work out for the better in the end.

Re: I knew it couldn't be this easy

Did your husband review the appraisal report? What comps were used as compared to the comps your dh was using when making the offer? Maybe your DH could share his comps.
If the appraisal is low b/c value really is low that will be an issue for any buyer they get so you should be able to negotiate

Re: I knew it couldn't be this easy

Wow! What a bummer. We closed last month and I was paranoid this was going to happen to us, it didn't, but in my paranoia I had asked our loan officer the "what if" questions and he said, "bottom line, I wouldn't allow you to buy a house that appraised for under the agreed upon price." Essentially, the seller would have to lower the price to asking or we'd walk away. So I mentally prepared myself to walk away in the event the bank appraised it for less than we agreed upon.

Good luck. I hope it works out.

Re: I knew it couldn't be this easy

Posted by olliesmama

So we found a house, signed contracts, had inspection, mortgage pretty much done, and now the appraisal comes in $30,000 LESS than the price we agreed on.

DH and I felt very comfortable with the price and believe we are getting a lot of house for our money.

Now we wait to see if the homeowner will lower the asking price, or we could split the difference (which that $$$ would have to come out of our pocket) or we walk away

Dh says that this could potentially work out very well for us and we could get the house for cheaper than we accpected but we were soooooo close, planning on closing next week

Thankfully DH is the mortgage broker and realtor so I feel confident having him take care of everything but I can't shake this sad and nervous feeling.

Anyone ever experience anything like this? What was your outcome? Any encouraging words for me

Re: I knew it couldn't be this easy

we are scared this might happen to us because of the fact the house is in need of much help but for 225K how much lower can it be for our area, we feel not much and hopefully the owner's will just give it to us which i think they will since no one lives there (father passed away and this is his house)

GOOD LUCK WITH YOU!!! Just think how much money you will have if they go for it!!!!

Re: I knew it couldn't be this easy

As good of a time it is to buy a house it also has it's downfalls. Foreclosures and short sales are affecting the prices of houses dramatically all over. I know in my area houses are selling for ALOT less than what they should be even during these times. I think some people just can't afford their homes and need to get out so are accepting far less than they normally would.

Hopefully they lower the price and it works out in your favor!

Re: I knew it couldn't be this easy

i dont think you should overpay ever - even if you LOVE the house - especially in this market......

hopefully they are willing to come down....

best of luck to you guys!

Re: I knew it couldn't be this easy

I wish you the best! I don't think I could pay much more than the appraisal, if anything.

Re: I knew it couldn't be this easy

If the seller doesn't come down to the appraised value, you can request a second appraisal, or ask the original appraiser to consider additional comps that your DH can provide.

Ask for a copy of the appraisal, so you can address anything that may add value.

I just refi-ed and my appraisal came in low (in my professional opinion) but it covered the loan so I didn't fight it. However, there were points that I could have argued, and other comps that were better suited if I had needed to get the value up.

Banks (and us appraisers) are being very conservative these days.

Re: I knew it couldn't be this easy

Thanks guys,

DH put the mortgage through another bank last night and put a rush on another appraisal.

Hopefully by next week we will have some more info. The sellers already bought a house in OHIO and the mom and son were just waiting for school to end so they can meet the husband there so I think they will be willing to come down.

Unfortunetly the appraiser did not add some comps that were of higher value for some reason so this next appraisal could be higher.

Dh still feels confident that we are getting the house and thinks it will actually work in our favor.

I will keep you all updated but thank you for your words and advice

Re: I knew it couldn't be this easy (SMALL UPDATE) at bottom

Good luck!! I hope everything works out for you.