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Appraisal Issue, Question & the agent's nutty reaction:
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marianne13
LIF Adolescent
Member since 6/10 887 total posts
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Re: Appraisal Issue, Question & the agent's nutty reaction:
Posted by femalej
we havent been in this situation...yet...but i have certainly asked about it
this is what i learned...RE agents on here, please let me know if this is even correct!!...
if you go into contract for price $X and the appraisal comes in at under price $X, as the buyer you can either (a) walk away; (b) try to negotiate a lower price with the seller; (c) negotiate with the appraiser; or (d) pay more, but i'm not sure how that works with getting a mortgage....
i think you should still go into contract....so at least the house is OFF THE MARKET...then worry about the appraisal later.
if you really love the house, i would definitely go into contract as fast as you can so you can take it off the market...
hth...and please update me...we may be in a similar situation soon (!!)
If the appraisal comes in at less than $X, you can do a, b or d. You can't do c, negotiate with the appraiser...I've never even heard of that. It's either walk away, have the seller match the appraisal price or put a bigger down payment if you choose to not lower the price of the house.
You asked how paying more works..if you are getting a conventional 30 yr mortgage with 20% down, then your loan to value ratio can't exeed 80%. So let's say the agreed on price is $400k and you planned on getting a loan for $320k and putting down $80k. Now the house appraises for $380k..and the seller won't lower the price so you have to still pay $400k for the house if you want it. The loan can't be more than 80% of $380k (the value) which is $304k. So basically your down payment is now $96k ($400k-$304k). You planned on putting $80k down and are now putting $96k down.
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Posted 4/18/13 4:56 PM  |
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Re: Appraisal Issue, Question & the agent's nutty reaction:
That happened with the house we sold. As sellers we were only coming down another $4K. I think the difference was $15K. We bent over backwards and already spent almost $5K for stuff they wanted done. I was done giving in. I was willing to take the chance that they walk.
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| Posted 4/18/13 6:59 PM |
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| Pages: 1 [2] |
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