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CouponKT
Our family is complete
Member since 6/06 16494 total posts
Name:
K
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Frustrated
So, I got the call I always wanted yesterday and we got an offer. It was a very low-ball offer that we just can't take. 
This has now uncovered an issue we didn't realize was there.....
The problem is, we have to sell for a certain amount in order to pay off the mortgage and not have to dip into our own pocket. BUT, recent home sales are much lower than that and our agent thinks that a mortgage company won't appraise it where we need it to be. Ours is in much better condition and has a lot of new things (new AC, new roof, new siding, new fence, etc.) so I feel that it should comp higher, but my agent doesn't think it will.
So, where do I go from here? I can't afford a loss on this house and short sale is not an option (I morally think it's wrong). Do you think the appraisal could come in higher to where I need it to be, or am I wishing on a star??
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Posted 6/30/12 9:05 AM  |
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Prudential Douglas Elliman Real Estate
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AScottWolf
I <3 our squish!
Member since 11/10 2237 total posts
Name:
Adriana
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Frustrated
Why don't you get it appraised on your own?
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| Posted 6/30/12 9:15 AM |
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Re: Frustrated
Posted by AScottWolf
Why don't you get it appraised on your own?
That's what I would do. It's around $300, maybe a little more now. At least you'll know where you stand.
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| Posted 6/30/12 9:19 AM |
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CouponKT
Our family is complete
Member since 6/06 16494 total posts
Name:
K
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Re: Frustrated
Posted by greenybeans
Posted by AScottWolf
Why don't you get it appraised on your own?
That's what I would do. It's around $300, maybe a little more now. At least you'll know where you stand.
Oh, I didn't know I could do that! Would that appraisal work for the buyer or they would still get their own?
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| Posted 6/30/12 10:01 AM |
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allIwant
Love my crazy life!
Member since 1/10 9170 total posts
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Re: Frustrated
I agree you can try to get it appraised on your own.
I am in a similar boat. We own a co op and the sale fell through when we bought our new house. So now we are carrying 2 mortgages. In our situation we know we have to bring money to closing, the question is how much. Honestly the housing market is really poor right now. I have my sale listed 50k lower than my accepted offer 1 year ago.
Do you have to move? can you wait it out a little?
In our situation we may have to do a short sale. When speaking to my realtor about what price to list it at if we do the short sale (we have to make sure the bank will approve it with their appraisal and that we don't go too low) she said not to waste my money. She can do the comps and tell me a "fair market value price" and there is no way to say for sure that my appraisal will be the same as my buyers appraisal.
Not sure if this all makes sense but hope it helps a little! good luck!
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| Posted 6/30/12 12:27 PM |
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Re: Frustrated
Posted by CouponKT
Posted by greenybeans
Posted by AScottWolf
Why don't you get it appraised on your own?
That's what I would do. It's around $300, maybe a little more now. At least you'll know where you stand.
Oh, I didn't know I could do that! Would that appraisal work for the buyer or they would still get their own?
You would be hiring the appraiser to do the appraisal for you. But when a buyer comes along and wants to buy, their lender (assuming they get a mortgage) will order another appraisal. In that case, the appraiser is really doing the appraisal to protect the lender's investment, and the bank is the client (although the buyer pays for it, and can get a copy of the appraisal). So getting an appraisal done now would not alleviate the need to have another appraisal done by the buyer's lender after you are in contract and the buyer applies for a mortgage.
Another thing to remember is that an appraisal is a time-sensitive thing, and the market is ever evolving. So if you have an appraisal done today, it's not going to necessarily hold true if you have a buyer come along in 6 months, or even 2-3 months. An appraiser looks backward at recently sold comparable homes and doesn't look back more than 6 months, but most banks ask for closed sales that are no more than 90 days old.
Also, an appraisal isn't an exact science. A human being is analyzing date -- selecting comps, making adjustments based on differences between your house and the comp houses (since no 2 properties are identical, even with a co-op or condo unit). So one appraiser's opinion can differ from another's, even if the time of the appraisal is the same.
It can be helpful to have an appraisal done in advance for a very unique property, esp. if it's a high end property.
But in your situation, if you were my client, I would say hold off. Because you don't know when a buyer will come and what the market will be like. I have been surprised by appraisals I thought would not come in, but they have. You could find an all cash buyer (making an appraisal irrelvant) or someone who is putting down more than 20%, which would factor in your favor re: the loan to value ratio (which is what the bank cares about).
And being brutally honest, if you are priced so far above any other comps that your agent feels there's no chance of the property appraising for that value, then there's probably no chance that anyone will buy it for that price! If you are just a bit higher, you may be ok. Prices have stabilized over the last year, for the most part, and in certain areas, they are starting to go up.
If you are in contract, and the appraisal doesn't come in, you basically re-negotiate. You have to come down in price, or the buyer has to kick in more cash, or a little bit of both has to happen to make it work. It doesn't automatically kill your deal.
Also, keep in mind that even if you were willing to do a short sale, you might not qualify. You really need to have a financial hardship that makes it (or will make it) impossible for you to pay your mortgage. It can't just be that you "want" to sell and buy something else, but you are upside down and don't have cash to bring to the closing table. And doing a short sale would mean you couldn't buy something else right away.
Good luck!
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| Posted 6/30/12 5:29 PM |
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