Appraisal Issue

The appraisal came in 10k below what we are paying.....

I want to try to re-negotiate with the sellers bank (this is short sale) and get the house for less money.....

Mortgage broker seems to pushing another appraisal and the realtor is checking the comps to see if the appraisal is justified (problem is there aren't any recent comps - we had this issue when making our offer)

Has anyone ever been in this situation with a forclosure or short sale? I feel like with a short sale we should be getting the home for a deal - not paying 10k above the appraisal It *could* be a low ball appraisal - but still, why wouldn't we take advantage of that and try to get 10k knocked off the price?

My DH is worried the sellers bank will say no and we'll lose the house over 10k....

Any advice?

Message edited 8/21/2009 12:24:43 PM.

Re: Appraisal Issue

I say try to re negotiate

Re: Appraisal Issue

Re: Appraisal Issue

Our appraisal came in $30,000 less than what the accepted offer was. Now my dh is a mortgage broker and a realtor and he felt that the best thing to do was to go through another bank and do 1 more appraisal. This way if the 2nd appraisal came in lower we had a better leg to stand on when trying to negotiate with the sellers.

So the 2nd appraisal came in $15,000 less than accepted offer. My dh went to the sellers with both appraisals and said, that even though we were willing to pay the original amount, 2 appraisals arent going to lie and obviously the house is not worth what both of us thought. Plus you cant take out a mortgage for more than the appraised amount.

So the homeowner realized that is they didnt lower the price for us, we couldnt buy it, not could anyone else, because the appraisal would come in low for a different buyer as well.

This was the worst part of the house buying process for us. I was so stressed but we ending up getting the house for $15,000 less than what we planned on.

I suggest doing the second appraisal, especially if you really want the house.

Good luck

Re: Appraisal Issue

Our mortgage broker and realtor found comps that suggest a higher appraisal....they are sending us the appraisal and the other comps they found this afternoon - they are also sending the same info back to the appraiser to see if they will change appraisal at all.....

It's a 9,500 difference between the appraisal and our offer.....our offer also includes about 5,500 in sellers concession - i'm not sure if that makes a difference?

We are going to see what the appraisal company says after reviewing the comps our realtor and mortgage broker came up with.....if the appraiser won't change the # it looks better when we go back to the bank to try and negotiate for less...

I am hoping this works in our favor and we can get the house for a little less - but at the same time the deal we cut with the bank had them paying most of our closing (out of seller concession) and we can't lose that - it basically covers all of our closing costs....