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avamamma
My Girl
Member since 7/06 3395 total posts
Name:
Tara
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The house we are buying appraised for $20,000 below selling price!
WHat do we do?????
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Posted 3/11/10 10:30 AM  |
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Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: The house we are buying appraised for $20,000 below selling price!
Call your attorney. There are a few ways to handle it.
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| Posted 3/11/10 10:37 AM |
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jteach
2 and through
Member since 9/07 3939 total posts
Name:
Jess
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Re: The house we are buying appraised for $20,000 below selling price!
same thing happened to us.
First we got another appraisal through another bank.
It still came back low so the owners had to lower their asking price in order for us or anyone else to be able to get a mortgage.
So we got it for less than what we offered 
But my dh is also our mortgage broker so he knew all the right things to do
Good luck
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| Posted 3/11/10 10:38 AM |
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melissny
LIF Infant
Member since 1/10 62 total posts
Name:
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Re: The house we are buying appraised for $20,000 below selling price!
Did you read the appraisal report? How are the comps? Do you think they are pretty much "on the money"? If so, I would try and renegotiate with the sellers. I was in this situation and I consulted with another mortgage broker my lawyer recommended before paying for another appraisal. He looked into the comps and was honest and told me that maybe he could get it to appraise for only $5-10K more. (we were $40K under) So I went back to the seller and told them unless they were selling to me for the appraised price I was walking and good luck because anyone after me would run into the same problem. They agreed 
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| Posted 3/11/10 2:01 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: The house we are buying appraised for $20,000 below selling price!
Posted by melissny
So I went back to the seller and told them unless they were selling to me for the appraised price I was walking and good luck because anyone after me would run into the same problem. They agreed
But what if another buyer has more cash to put down? Then they could make the sale. If I am understanding this correctly, not everyone puts the same amt down. What if another buyer qualified for more mortgage than you did and also had more $ to pay in cash? If the senario I describe is the case, couldn't the sellers find a buyer who will buy at the price they desire?
Message edited 3/11/2010 2:06:39 PM.
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| Posted 3/11/10 2:06 PM |
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melissny
LIF Infant
Member since 1/10 62 total posts
Name:
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Re: The house we are buying appraised for $20,000 below selling price!
Posted by Goobster
Posted by melissny
So I went back to the seller and told them unless they were selling to me for the appraised price I was walking and good luck because anyone after me would run into the same problem. They agreed
But what if another buyer has more cash to put down? Then they could make the sale. If I am understanding this correctly, not everyone puts the same amt down. What if another buyer qualified for more mortgage than you did and also had more $ to pay in cash? If the senario I describe is the case, couldn't the sellers find a buyer who will buy at the price they desire?
I guess that would be possible but who would want to buy a house for more then it appraised for? And not by 5K but 40K? I don't know what the OP's situation is but I was putting down 20%. I guess if they really wanted to they could've held out for the chance of buyer willing to pay more then the appraised price and had more cash to put down but I don't know how often that happens in this market.
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| Posted 3/11/10 2:26 PM |
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: The house we are buying appraised for $20,000 below selling price!
Posted by Goobster
But what if another buyer has more cash to put down? Then they could make the sale. If I am understanding this correctly, not everyone puts the same amt down. What if another buyer qualified for more mortgage than you did and also had more $ to pay in cash? If the senario I describe is the case, couldn't the sellers find a buyer who will buy at the price they desire?
This is true. This happened to us with our first house. Mind you teh market was very different back in 2004. SO our house appraised low. We paid to have another full appraisal done (the first was a drive by only) still came back low.
We loved the house and felt it was not a fair appraisal. We put more money down so that our mortgage was only for 80% of the sale price. We also sold the house about 2 years later for 80K more...so in our case it worked fine. But again it was 2004 a much different RE market!
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| Posted 3/11/10 2:44 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: The house we are buying appraised for $20,000 below selling price!
Posted by melissny
I guess that would be possible but who would want to buy a house for more then it appraised for? And not by 5K but 40K? I don't know what the OP's situation is but I was putting down 20%. I guess if they really wanted to they could've held out for the chance of buyer willing to pay more then the appraised price and had more cash to put down but I don't know how often that happens in this market.
There are people who would. Depends on the location and desirablity. Law of supply and demand as well.
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| Posted 3/11/10 2:49 PM |
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melissny
LIF Infant
Member since 1/10 62 total posts
Name:
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Re: The house we are buying appraised for $20,000 below selling price!
Posted by Goobster
Posted by melissny
I guess that would be possible but who would want to buy a house for more then it appraised for? And not by 5K but 40K? I don't know what the OP's situation is but I was putting down 20%. I guess if they really wanted to they could've held out for the chance of buyer willing to pay more then the appraised price and had more cash to put down but I don't know how often that happens in this market.
There are people who would. Depends on the location and desirablity. Law of supply and demand as well.
Yes, anything is possible. Someone could call up the seller tomorrow and offer them cash for the house. I was just offering my experience to the OP as a possibility of something to do in this scenario.
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| Posted 3/11/10 3:50 PM |
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