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If a house appraises lower than the price someone is willing to pay....
what happens?
Will they not get the mortgage at all?
Or just get the mortgage for the lower amt that it appraised for?
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Posted 9/29/10 10:42 AM  |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: If a house appraises lower than the price someone is willing to pay....
from what I understand the bank will not approve for more than what it appraises for
you can do a few things:
1. Seller agrees to lower price
2. Pay the difference in cash
3. Try going with a different bank and see what the appraisal comes in at
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| Posted 9/29/10 10:47 AM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
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Re: If a house appraises lower than the price someone is willing to pay....
Posted by staceyums81
from what I understand the bank will not approve for more than what it appraises for
you can do a few things:
1. Seller agrees to lower price
2. Pay the difference in cash
3. Try going with a different bank and see what the appraisal comes in at
ITA or
4. get another apprisal company to do one for you
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| Posted 9/29/10 10:50 AM |
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MrsRitaB
Love of my life! <3
Member since 4/10 4669 total posts
Name:
Ri
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Re: If a house appraises lower than the price someone is willing to pay....
Posted by HeatherRose
Posted by staceyums81
from what I understand the bank will not approve for more than what it appraises for
you can do a few things:
1. Seller agrees to lower price
2. Pay the difference in cash
3. Try going with a different bank and see what the appraisal comes in at
ITA or
4. get another apprisal company to do one for you
yup
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| Posted 9/29/10 11:40 AM |
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w8andsee
LIF Adult
Member since 10/09 1193 total posts
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Re: If a house appraises lower than the price someone is willing to pay....
You will get a mortgage based on the appraisal number minus your down payment.
Example:
Homeowner wants 500k
Appraisal is 400k
Bank will give you a mortgage for 320k, if you are putting a 20% down payment.
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| Posted 9/29/10 11:59 AM |
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PumpkinGirl
:o)
Member since 10/08 1838 total posts
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Re: If a house appraises lower than the price someone is willing to pay....
The house we just bought appraised for less then we agreed to pay for it.
We bought it anyway because we plan on being there for a very long time and we feel it is worth what we paid. (we didn't agree with the comps that were used, very different)
Wasn't a problem for the bank because we weren't asking the bank to finance more than the appraised value.
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| Posted 9/29/10 12:04 PM |
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Re: If a house appraises lower than the price someone is willing to pay....
Posted by w8andsee
You will get a mortgage based on the appraisal number minus your down payment.
Example:
Homeowner wants 500k
Appraisal is 400k
Bank will give you a mortgage for 320k, if you are putting a 20% down payment.
so where does the rest of the $$ come from? Buyer has to comeup with another 100k if he wants the house or seller needs to come down 100k?
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| Posted 9/29/10 12:07 PM |
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Re: If a house appraises lower than the price someone is willing to pay....
Posted by w8andsee
You will get a mortgage based on the appraisal number minus your down payment.
Example:
Homeowner wants 500k
Appraisal is 400k
Bank will give you a mortgage for 320k, if you are putting a 20% down payment.
Also wouldn't the downpayment be 100k if the buyer said they would put down 20% of the $500,000 buyer's offer on the house?
Message edited 9/29/2010 12:24:16 PM.
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| Posted 9/29/10 12:23 PM |
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w8andsee
LIF Adult
Member since 10/09 1193 total posts
Name:
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Re: If a house appraises lower than the price someone is willing to pay....
Yes, if someone was buying a house for 500k and putting down 20% which equals to 100k, the bank would be giving you a mortgage for 400k.
If that house does not apprise for 500k and appraises for 400k and you still only want to put 20% (80k), the bank would give you a mortgage for 320k (80% of the appraisal price).
You (the buyer) would have pay the seller the additional 100k for the difference between the sell price and appraisal price. That money comes out of your pocket (savings, checking, etc).
The seller can also lower their price meeting the appraisal price. Or you can negotiate something else. Ex: seller lowers to 420k, then you the buyer just have to come up with 20k.
Like the other posters above, you can also try going to another bank or getting another appraisal and hope it comes in higher.
Does that make sense or did I confuse you?
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| Posted 9/29/10 12:52 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: If a house appraises lower than the price someone is willing to pay....
Posted by Househunter2010
Posted by w8andsee
You will get a mortgage based on the appraisal number minus your down payment.
Example:
Homeowner wants 500k
Appraisal is 400k
Bank will give you a mortgage for 320k, if you are putting a 20% down payment.
so where does the rest of the $$ come from? Buyer has to comeup with another 100k if he wants the house or seller needs to come down 100k?
Yes
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| Posted 9/29/10 1:08 PM |
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Sweetlax22
LIF Adult
Member since 5/10 1904 total posts
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Re: If a house appraises lower than the price someone is willing to pay....
In short-The bank will still give you a mortgage for what they feel it is worth, but you have to make sure the difference is covered in your down payment. Or the seller can lower the price.
Sorry, guess that wasnt so short. Home buying is confusing, but you will get through it. 
Ours was appraised for 10k less, this is a very common this in the neighborhood we bought in so we didn't mind.
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| Posted 9/29/10 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: If a house appraises lower than the price someone is willing to pay....
This happened to us with our first house. Mind you it was 2004 so it was a different ball game.
But we were VERY comfortable with the price we were paying and felt the appraisal was false. (it was a drive by)
We paid for another appraisal...but it didnt come back too much better. (it was through the bank of course!)
Our bank wouldnt finance more than 80% of the value of hte house! So we put an extra say 10K down (not sure what the # was at this point)
In our case it wasnt a big deal. We had the money and we knew the house was worth what we were paying. WE put about 5K into the house and sold it 2 years later for about 70K more than we bought it for. So our gamble paid off.
In this market I am not sure I would be willing to do the same thing!
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| Posted 9/29/10 3:53 PM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
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Re: If a house appraises lower than the price someone is willing to pay....
my BIL had to pay a 30K difference
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| Posted 9/29/10 6:48 PM |
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ChrisDee
My Girls
Member since 11/06 9543 total posts
Name:
Christine
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Re: If a house appraises lower than the price someone is willing to pay....
This happened when we bought our house. It appraised for about $5,000 less. We asked the seller to lower the price by that amount or we could not do it. They did
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| Posted 9/30/10 7:20 AM |
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