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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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house appraised for less ugh
Love to hear thoughts and experiences here. House we are in contract for appraised for 30 grand less. If buyer does not budge, how did you go about getting another loan for the difference? Is it easy to do? Any regrets? Or Would u then not buy the house and walk away if the seller wanted full and original amount? I never thought this would happen. Any advice welcome. Did this happen to u? What was outcome?
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Posted 6/22/10 2:45 PM  |
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Prudential Douglas Elliman Real Estate
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: house appraised for less ugh
Didn't happen to me but to 2 of our friends. One couple came up with the difference in Cash. A bank will not give you a loan for more than the appraisal amount. The other couple walked away cause the seller would not budge on price.
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| Posted 6/22/10 2:47 PM |
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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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Re: house appraised for less ugh
Before anyone asks, the house is priced accordingly according to recent neighborhood sales. Its a youngish victorian and the price for it orginally, I was comfy paying. We obviously already paid for stuff so far..inspection, half attorney fees, loan application, put 10k in escrow etc. Already have money invested kwim? I'd hate to walk and start all over. We all think house appraised for too low. I was shocked. Its not a fixer upper or anything , either. Houses for sale in neighborhood are all currently priced around the same, if not more. I'd hate to get another appraisal. If u do ge one, would it have to be thru another bank?
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| Posted 6/22/10 2:52 PM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: house appraised for less ugh
You can have it re-appraised. I thought I remember people having 2 appraisals done when this happened.
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| Posted 6/22/10 2:55 PM |
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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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Re: house appraised for less ugh
Also, do u take out a personal loan for the difference? I know I should ask all the pros handling this but want some background info first before I do.
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| Posted 6/22/10 2:55 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: house appraised for less ugh
I would ask the seller to either cover the cost for a new appraisal or to reduce the selling price to match the current appraisal.
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| Posted 6/22/10 2:57 PM |
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hmm8191
My loves
Member since 3/06 2908 total posts
Name:
Heather
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Re: house appraised for less ugh
We were in the same boat and had to walk away from the house. Our appraisal was low but we were definitely overpaying for the house. In the end it was the BEST thing that could have happen. We found a bigger, better, cheaper house the day after we cancelled the contract and close on June 4th. It's devastating I know but I would think very long and hard before getting yourself into a negative equity situation.
Edited to add, our appraisal was 46K less.
Message edited 6/22/2010 5:16:32 PM.
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| Posted 6/22/10 3:14 PM |
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hmm8191
My loves
Member since 3/06 2908 total posts
Name:
Heather
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Re: house appraised for less ugh
Posted by rileysmama
Before anyone asks, the house is priced accordingly according to recent neighborhood sales. Its a youngish victorian and the price for it orginally, I was comfy paying. We obviously already paid for stuff so far..inspection, half attorney fees, loan application, put 10k in escrow etc. Already have money invested kwim? I'd hate to walk and start all over. We all think house appraised for too low. I was shocked. Its not a fixer upper or anything , either. Houses for sale in neighborhood are all currently priced around the same, if not more. I'd hate to get another appraisal. If u do ge one, would it have to be thru another bank?
BTW: you should only lose the cost of the appraisal and inspection. the other costs should be rolled into the next home purchase if you choose to go that route.
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| Posted 6/22/10 3:16 PM |
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Nik211
my little monkey<3
Member since 5/08 3303 total posts
Name:
Nik
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Re: house appraised for less ugh
this happened to us...the difference was less than 10k i can't remember exactly how much it was...
seller (was a bank, it was a short sale) wouldn't budge unless we took away the sellers assist - which we needed...
we didn't have the cash to make up the difference - if we did, we wouldn't have been doing the sellers assist in the first place  that was a way to get us out of having to throw up more cash - we were already doing 20% DP
in the end we decided to just pay PMI (even though we put 20% down to avoid PMI first place - how ironic!) it was better than having to pay the cash at closing or come up with the cash to cover the appraisal difference...it worked out to our advantage to just pay the PMI (i think it's like $28 a month for us) and re-appraise in a few years and hopefully can stop paying it early..that will hopefully cost us less than it would have to come up with the cash difference...
Message edited 6/22/2010 3:54:19 PM.
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| Posted 6/22/10 3:53 PM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: house appraised for less ugh
happened to us. The house appraised for $5K less than we were buying it for. The bank had no problem closing the loan. We just had to sign something stating that the value was "X" (the appraised value).
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| Posted 6/22/10 3:57 PM |
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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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Re: house appraised for less ugh
bump
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| Posted 6/23/10 10:27 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: house appraised for less ugh
$30K is quite a bit
you would either have to come up with the cash to cover the difference or the seller needs to reduce the price
I would ask to see the comps used- none of them should be short sales or foreclosures
I would talk to the mortgage company- they are the ones that send the appraiser
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| Posted 6/23/10 10:41 PM |
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DaniJude
You're My Home <3
Member since 11/06 14815 total posts
Name:
Danielle
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Re: house appraised for less ugh
With IL's - the people that bought their house, the house they sold and were leaving to go to IL's did not appraise for what they agreed upon w/ their buyer. They were already in contract with IL's house so they came down, in a pickle. They figured it was better than starting over again and hoping to find a buyer in this economic climate - they were probably right! But they came down $60,000!!!!!!!!!!!!!!!!!!
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| Posted 6/23/10 11:11 PM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: house appraised for less ugh
Have you seen the appraisal? How do the comps compare?
You can ask for a second appraisal, and/or you can ask for a "reconsideration of value" from the original appraiser based on additional comps you supply (this is less common these days, but worth a shot). It may be that you had a conservative appraiser, or that the current comps weren't great or that the house is actually overvalued.
If you want a 2nd opinion, send me the address and/or the MLS number and I'll do a quick analysis and let you know if I think it could appraise higher based on current comps.
You can also go back to the seller and try to re-negotiate.
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| Posted 6/24/10 6:41 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: house appraised for less ugh
Posted by -Lisa-
Have you seen the appraisal? How do the comps compare?
You can ask for a second appraisal, and/or you can ask for a "reconsideration of value" from the original appraiser based on additional comps you supply (this is less common these days, but worth a shot). It may be that you had a conservative appraiser, or that the current comps weren't great or that the house is actually overvalued.
If you want a 2nd opinion, send me the address and/or the MLS number and I'll do a quick analysis and let you know if I think it could appraise higher based on current comps.
You can also go back to the seller and try to re-negotiate.
Lisa you are so sweet!
I would say look at your appraisal compare comps you used when making your offer.
Good luck
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| Posted 6/24/10 8:33 AM |
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Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
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Re: house appraised for less ugh
Posted by -Lisa-
Have you seen the appraisal? How do the comps compare?
You can ask for a second appraisal, and/or you can ask for a "reconsideration of value" from the original appraiser based on additional comps you supply (this is less common these days, but worth a shot). It may be that you had a conservative appraiser, or that the current comps weren't great or that the house is actually overvalued.
If you want a 2nd opinion, send me the address and/or the MLS number and I'll do a quick analysis and let you know if I think it could appraise higher based on current comps.
You can also go back to the seller and try to re-negotiate.
I was going to suggest a reconsideration also. The best thing is to see if the buyer will come down in price though.
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| Posted 6/24/10 10:38 AM |
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Nik211
my little monkey<3
Member since 5/08 3303 total posts
Name:
Nik
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Re: house appraised for less ugh
Posted by Deeluvsvinny
Posted by -Lisa-
Have you seen the appraisal? How do the comps compare?
You can ask for a second appraisal, and/or you can ask for a "reconsideration of value" from the original appraiser based on additional comps you supply (this is less common these days, but worth a shot). It may be that you had a conservative appraiser, or that the current comps weren't great or that the house is actually overvalued.
If you want a 2nd opinion, send me the address and/or the MLS number and I'll do a quick analysis and let you know if I think it could appraise higher based on current comps.
You can also go back to the seller and try to re-negotiate.
I was going to suggest a reconsideration also. The best thing is to see if the buyer will come down in price though.
we tried the reconsideration with the appraisal company and got NADA...they were such jerks...our mortgage broker and realtor submitted documentation (comps) and argued for us, they wanted them to re-appraise the house b/c their appraisal was BS...their appraisal was clearly wrong but they refused to change it and we had to suffer b/c of it...and it was for a difference of under 10k...it was so annoying - but we were stuck and we let the bank bully us (it was a short sale, was underpriced and we still got screwed b/c of a bad appraisal), in hindsight i think the bank would have eventually come down to the appraisal price but we didn't want to lose the house...
our mortgage broker told us that they did a new law where appraisers are random - they did that b/c of what happened with the housing bubble (appraisers knew the realtors and mortgage brokers they worked with and were more likely to over-appraise just to help make a sale which also contributed to the rise of home prices) he told us that appraisers are more likely to under-appraise now and that b/c they are random you can get someone who doesn't know what they are doing...
whatever the case we got screwed over but at least we got the house and we would still do it again so i try not to dwell on it 
good luck to you! in your case it could benefit you if the sellers come down
Message edited 6/24/2010 12:18:02 PM.
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| Posted 6/24/10 12:16 PM |
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