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I'm back with another what would you do...

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MrsBurgos09
LIF Adolescent

Member since 9/09

896 total posts

Name:
Erica

I'm back with another what would you do...

Coop appraisal came in 13k below what we have contracted for with a buyer.... I'm not even going to go into how upset I am... What would you do- come down on the price to get the deal done or walk away?

We need the proceeds from the sale to move- so we would have to stay put and perhaps try and sell later - no guarantee we would sell later any higher- the comps in our area are just crappy Chat Icon

Posted 4/7/16 10:28 PM
 
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Shroggie
Don't Worry...Be Happy

Member since 5/06

6261 total posts

Name:

Re: I'm back with another what would you do...

Will the buyer meet you half way? Is that an option? If it were me, and I really wanted to sell and get into another house, I'd take the loss.

Posted 4/7/16 10:33 PM
 

FirstMate
My lil cowboy

Member since 10/10

6742 total posts

Name:

Re: I'm back with another what would you do...

Did your realtor do or say anything? I would see if the buyer will split it with you, but don't count on it. If they say no, I would come down because I'm only going to have the same problem with the next buyer.

Posted 4/7/16 10:52 PM
 

LSP2005
Bunny kisses are so cute!

Member since 5/05

18720 total posts

Name:
L

Re: I'm back with another what would you do...

I would ask the buyer to split, or be willing to go down. Ask to see the appraisal in writing first. You would have this issue with the next buyer too....

Posted 4/7/16 11:05 PM
 

MrsBurgos09
LIF Adolescent

Member since 9/09

896 total posts

Name:
Erica

I'm back with another what would you do...

Yeah I have the appraisal. As you all suggested we are considering offering to come down some but not the full 13k. We just can't...
I suppose what I thought was knowing that with the next buyer will have the same issue - we have to save a bit more money than we have been to offset this loss... Know what I mean. Can I say I hate being a grown up and house selling and buying is for the birds

Message edited 4/7/2016 11:45:34 PM.

Posted 4/7/16 11:33 PM
 

ave1024
I Took The Wrong Road

Member since 12/07

5983 total posts

Name:
That Led To The Wrong Tendencies

Re: I'm back with another what would you do...

I would offer 5k off tops. A house is worth what somebody is willing to pay for it. If this buyer doesn't want to come up put it back on the market. another buyer may use a different bank with a different appraiser and it may come in higher.

I would never drop my price down in full due to a low appraisal. I'd challenge the appraisal! Have them redo it.

Posted 4/7/16 11:40 PM
 

HomeIsWithU
Baby #2 on the way!

Member since 9/07

7816 total posts

Name:
Jenn

Re: I'm back with another what would you do...

In a co-op or townhouse or condo situation, you don't have much of a choice but to come down to the appraisal price. Anything else that's selling in the same development is going to be appraised for the same. We went through this last year when we sold our townhouse and 2 other units were also for sale. We all appraised for within $2k of each other and we all had to reduce our prices to sell. Sucks but it was the reality of the situation. With single family detached homes it's different because the comps aren't exactly the same, but with attached units this happens very often.

Posted 4/8/16 8:56 AM
 

pugmama
April already?

Member since 3/06

5267 total posts

Name:
Erica

Re: I'm back with another what would you do...

When we were house hunting and we looked at a few co-ops, when the appraisal didn't come in, we had no choice but to walk away since we wouldn't be able to get a mortgage that way and couldn't come up with extra money.

Posted 4/8/16 9:10 AM
 

hotelcalie
LIF Adult

Member since 12/05

1344 total posts

Name:

I'm back with another what would you do...

We took a 30K hit on our coop just recently. it SUCKS big time. But we wanted out and to get a house. You will have to come down because their bank will not give them the funds to buy your place since the appraisal is lower. Sorry..I feel your pain!

Posted 4/8/16 9:21 AM
 

JandJ1224

Member since 6/06

5810 total posts

Name:
Jannette

Re: I'm back with another what would you do...

If there are no comps that support the higher price you will need to come down or keep the unit on the market and hope for something to close that will support the higher value.

Good luck!

Posted 4/8/16 11:26 AM
 

LeShellem
A new beginning

Member since 2/07

3600 total posts

Name:
LeShelle

Re: I'm back with another what would you do...

Take the loss. We took a 10k loss. At the time it sucked, but we knew getting another buyer would take time and we wanted out. Also no guaranteed that the appraisal would go up, it could actually go further down.

Posted 4/8/16 11:58 AM
 

MrsB12614
LIF Adult

Member since 4/14

1986 total posts

Name:
Mrs

I'm back with another what would you do...

I would take the loss. As someone mentioned, the bank won't approve a mortgage for over appraisal, unless these buyers can come up with 13k more in cash and are willing to pay over appraised value. It doesn't hurt to ask the buyers to split the difference either. You never know what the other party is thinking. I would look at what you have saved, what you will make if you sell the coop for 13k less and look where you stand to get in the next house. From a buyer point of view, I wouldn't pay over appraisal, however, are there any coops that just sold in your complex? What did those sell for? I would maybe eat the cost and pay for a second appraisal- each bank is different as another poster said. Good luck!!!

Posted 4/8/16 1:08 PM
 

itsagoodlife
LIF Adolescent

Member since 8/15

619 total posts

Name:

Re: I'm back with another what would you do...

As a buyer, I would walk away. unless I was truly in love with the place and HAD to have it. 13K is a lot and no mortgage company is going to approve a mortgage over their appraisal.

Good luck!

Posted 4/8/16 1:11 PM
 

skew
LIF Adult

Member since 5/05

6786 total posts

Name:

Re: I'm back with another what would you do...

Request a 2nd appraisal (different appraiser) and if higher, appeal the first.

If the buyer is obtaining a loan and the appraisal is significantly lower than the agreed upon purchase price, the bank will deny the loan. A work around is that the buyer agrees to pay the difference in cash or seller reduces the price.

Message edited 4/8/2016 3:49:47 PM.

Posted 4/8/16 3:49 PM
 

alli3131
Peanut is here!!!!!!

Member since 5/09

18115 total posts

Name:
Allison

Re: I'm back with another what would you do...

Posted by skew

Request a 2nd appraisal (different appraiser) and if higher, appeal the first.

If the buyer is obtaining a loan and the appraisal is significantly lower than the agreed upon purchase price, the bank will deny the loan. A work around is that the buyer agrees to pay the difference in cash or seller reduces the price.



The seller can request another appraisal but it's the borrows bank that does it and they do not have to agree to it or even if the buyer got their own the bank doesn't have to accept that appraisal. And in general the appraisals might vary a bit but I highly doubt it would be $13k.

Posted 4/8/16 4:17 PM
 

Mara1017
LIF Adolescent

Member since 5/11

695 total posts

Name:
Mara

I'm back with another what would you do...

I think you are going to have an issue with any buyer unless they are a cash purchaser so I would reduce the price. The buyer is not going to be able to get a mortgage for the amount needed if the appraisal is $13,000 lower than sale price.

Posted 4/8/16 4:43 PM
 

BigB
C & J are 10!

Member since 6/05

5912 total posts

Name:
Stacey

Re: I'm back with another what would you do...

Ask the broker to cut the commission first. My issue is that the property was over priced and no one advised you accordingly. Any agent would already know what a property should appraise for.

Posted 4/8/16 8:58 PM
 

MrsBurgos09
LIF Adolescent

Member since 9/09

896 total posts

Name:
Erica

I'm back with another what would you do...

Thank you so much everyone! Each of you said things we were thinking.
Valid points for now and even in the future. We declined to go down 13k but did agree to go down 5k - waiting to hear from them...

We have accepted that it looks like we will have to go lower but the reality is right now today we can't afford to take the next step taking such a hit. Lots of things can chbage and we have decided to ramp up our savings so we can position our self better for the next purchase - in the mean time we I'll stay put unless this buyer agrees to add more. It's what we think is best for us. We want more space and a better area for DS but we don't want to settle either. He's 3 so we feel we have a tad bit more time so we are going to take our chances.

Posted 4/8/16 9:37 PM
 

skew
LIF Adult

Member since 5/05

6786 total posts

Name:

Re: I'm back with another what would you do...

Posted by BigB

Ask the broker to cut the commission first. My issue is that the property was over priced and no one advised you accordingly. Any agent would already know what a property should appraise for.



OP, this is a great idea. Others have asked but you have yet to mention the realtor. Do you have one or is it a FSBO?

If there is a listing agent, what did they suggest house to be priced? What were their recommendations regarding the difference in appraisal and contract price?

I think it is reasonable for you to lower price by 5k, the realtor to reduce commission by 5k and ask the buyer to increase bid by 3k.

Message edited 4/9/2016 11:24:45 AM.

Posted 4/9/16 11:13 AM
 
 
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