Anyone have a house they want to buy not appraise?

We have been in contract on a house for about 3 weeks now. The appraisal was done and the price was $13,000 less than the selling price we agreed on. It took alot of negotiating to get the house and the sellers were difficult about coming down in price. I am really worried that we are going to lose the house!! Anyone been in a similar situation? How did it turn out???

Re: Anyone have a house they want to buy not appraise?

this happened to my cousin- but it was $5k.. the seller wouldn't move and they didn't have the extra 5k to make up the difference. Their bank (I believe wells fargo) had them sign something that stated they knew they were overpaying by 5k and the mortgage went through.

We are in the contract phase now- and if the house doesn't appraise then we aren't going to buy it.

Re: Anyone have a house they want to buy not appraise?

I dont get this...how is the seller ever going to sell the house then if they don't lower the price? Isn't this going to happen to the next buyer when they appraise it?

Re: Anyone have a house they want to buy not appraise?

It happened to us - coincidentally for $5K and with Wells Fargo. Supposedly the appraisal that we paid for with our mortgage application was just a "drive by" appraisal. It came in $5K less. Our mortgage broker told us not to worry. The comps they were using were different from our house (no CAC, 1½ bathrooms instead of 2 full, etc.) which would make up the $5K no problem.

The bank originally wanted us to pay an additional $575 for a "full" appraisal. We refused and instead they had us sign something saying that we were aware that the house came in under the appraised value based on the "drive by."

Ours was such a slight difference that it was no big deal. However if it were a higher amount and it was a full appraisal, not a drive by, we definitely would have tried to renegotiate or walk away from the deal.

Re: Anyone have a house they want to buy not appraise?

this just happened to my friend and the difference was $15,000. They asked the seller to lower the price, but they wouldn't. so my friend backed out of the deal. i guess the seller realized they aren't going to get anyone else to buy the house without lowering it, so they went down $10,000, but my friend still said no. eventually both REA decided to take less commission to make up the $5,000 difference.

hopefully it all works out!!

Re: Anyone have a house they want to buy not appraise?

Thanks for your responses. This is really stressing me out!!!!! I am hoping that it works out somehow.... I really can't start house hunting again!!!!!!!!!!!!!!!

Re: Anyone have a house they want to buy not appraise?

$13,000 is a big difference to make up. Was it a full appraisal or a drive by?

The bank may want you to make up the difference in the form of a downpayment. We didn't need to do this but I think it was because we put down over 20%

Re: Anyone have a house they want to buy not appraise?

It was a full appraisal, however, the comps they used weren't really representative of the area (in our opinion). The seller has refused to come down and is submitted new comps to the appraisal with hopes it will raise the price.