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avamamma
My Girl
Member since 7/06 3395 total posts
Name:
Tara
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House appraised for $20,000 less then selling price and the sellers won't reduce price.
What do we do??? They won't even meet us half way...Do we back out and get our deposit back?????
Do we suck it up and buy the house because we love it, or would we be nuts to pay more than what the appraised price is?
Message edited 3/12/2010 9:59:54 AM.
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Posted 3/12/10 9:57 AM  |
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Prudential Douglas Elliman Real Estate
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MrsJ
I love my Katie Bug
Member since 5/05 11357 total posts
Name:
Kathy
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
Are you sure the bank would even give you the mortgage amount that you need to buy the house? When I bought my house, the bank wouldn't have funded my loan if the house appraised for less. You could also ask for a second appraisal.
Why did it appraise for so much less?
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| Posted 3/12/10 10:04 AM |
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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 $20,000 less then selling price and the sellers won't reduce price.
I would walk away....quickly. You have no guarantee that the house will be worth the asking price anytime soon. You will not be able to get a mortgage for the asking price and I wouldnt want to come up with that extra cash
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| Posted 3/12/10 10:10 AM |
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Nifheim
allo
Member since 1/09 5476 total posts
Name:
Jennifer
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
you can ask for a second appraisal but to be honest it sounds like your sellers need to realize that properties are not getting what "the seller thinks its worth" - maybe with a second appraisal it could be 10K less and then the seller can adjust or meet you halfway.
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| Posted 3/12/10 10:14 AM |
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jteach
2 and through
Member since 9/07 3939 total posts
Name:
Jess
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
Get another appraisal and then see what happens.
We had a second appraisal after the 1st one came back $30,000 less
the second one came back $15,000 less and the sellers knew that if they wanted to sell it they would have to come down
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| Posted 3/12/10 10:31 AM |
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Salason
♥
Member since 6/05 9878 total posts
Name:
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
If you can (based on your contract), I would walk away without batting an eyelash. I would never pay more than the appraised value in this market.
But call your mortgage guy first because the decision may be made for you by the mortgage company anyway.
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| Posted 3/12/10 11:03 AM |
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Cpt2007
A new love!
Member since 1/08 5946 total posts
Name:
Liz
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
if you REALLY love the house, pay for a second appraisal to be done. If you are only so-so, walk away right now before spending another dime on it. Sounds like your sellers need a reality check.
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| Posted 3/12/10 11:09 AM |
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CrankyPants
I'm cranky
Member since 7/06 18178 total posts
Name:
Mama Cranky
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
Posted by Salason
If you can (based on your contract), I would walk away without batting an eyelash. I would never pay more than the appraised value in this market.
But call your mortgage guy first because the decision may be made for you by the mortgage company anyway.
I agree
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| Posted 3/12/10 11:18 AM |
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melissny
LIF Infant
Member since 1/10 62 total posts
Name:
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
I responded to your post yesterday, not sure if you read it, I was in the same situation. Do you think the house is worth $20K more? How are the comps in the appraisal? Do you think it's a fair appraisal? If you don't think the house is worth 20K more then I would ask for my deposit back.
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| Posted 3/12/10 11:30 AM |
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Babyaholic
Thankful
Member since 6/09 1459 total posts
Name:
D
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
If I really, really loved the house, I would offer what I would want to pay for it. If the sellers do not want to compromise at all, then I need to decide how much I love the house and if it worth it for me to walk away. While 20,000 is a helluva lot of money, if I plan on staying in this house for life and this is my dream home, I probably would buy it.
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| Posted 3/12/10 11:38 AM |
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dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
I'd walk away, but I am not a believer in finding my "dream house". I could probably never afford what I would consider a dream house and there are probably others out there I would like just as much.
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| Posted 3/12/10 12:01 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
What I want to know is who appraises the house and do they only look at exterior and comps or interiors too?
I just don't understand how someone can appraise a home if they haven't gone into the home. For ex, one home can have marble throughout or everything high end and the one next door have to be gutted.
So can anyone tell me how an appraiser appraises a home?
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| Posted 3/12/10 12:36 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
Posted by Babyaholic
If I really, really loved the house, I would offer what I would want to pay for it. If the sellers do not want to compromise at all, then I need to decide how much I love the house and if it worth it for me to walk away. While 20,000 is a helluva lot of money, if I plan on staying in this house for life and this is my dream home, I probably would buy it.
Same here. 100% I agree
In this market there isn't much out there so it's all about supply and demand.
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| Posted 3/12/10 12:37 PM |
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julz33
i run for bacon
Member since 5/05 20584 total posts
Name:
julz
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
Posted by Goobster
So can anyone tell me how an appraiser appraises a home?
We had an appraisal done on my mom's home and the appraiser did go inside.
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| Posted 3/12/10 12:53 PM |
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evenedan
Need a little sunshine
Member since 9/05 3843 total posts
Name:
D
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
I'd walk away. That being said, I generally have to feel like I got a deal or I am not comfortable with my purchase. It wouldn't sit well with me if I paid more than the bank appraisal stated the house was worth, even if "I" believed the house was worth it.
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| Posted 3/12/10 12:54 PM |
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laurabora
LIF Adult
Member since 4/07 2712 total posts
Name:
Laura
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
Posted by julz33
Posted by Goobster
So can anyone tell me how an appraiser appraises a home?
We had an appraisal done on my mom's home and the appraiser did go inside.
They go inside your home, but not inside the comp houses. They just go by square footage, whether it has a garage, how many bedrooms/bathrooms, etc. So there's no way to know if the comp house is a dump that needed to be gutted and it is just compared to your house, even if your house is completely renovated. Very unfair IMO.
Message edited 3/12/2010 12:56:26 PM.
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| Posted 3/12/10 12:56 PM |
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-Lisa-
---------------
Member since 5/05 6530 total posts
Name:
Lisa
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
Posted by laurabora
Posted by julz33
Posted by Goobster
So can anyone tell me how an appraiser appraises a home?
We had an appraisal done on my mom's home and the appraiser did go inside.
They go inside your home, but not inside the comp houses. They just go by square footage, whether it has a garage, how many bedrooms/bathrooms, etc. So there's no way to know if the comp house is a dump that needed to be gutted and it is just compared to your house, even if your house is completely renovated. Very unfair IMO.
I'm an appraiser. More often than not, the client/bank requires a full inspection of the property - meaning I DO go inside.
I can't go inside comps. But I can get a pretty good feel for their condition - driving by tells me whats going on outside, and MLS description and interior pictures tell me whats happening inside.
Appraisals aren't an exact science - they're simply an OPINION of value, based on recent sales. And two different appraisers can have pretty different opinions.
There are instances where a house may actually be worth more than it can be appraised for - we're limited by recent comps. If you have the absolute best house in town, and nothing similar has sold recently, then yeah, your appraisal will likely come in low. There are also instances where buyers overbid...
advice to the OP: request a copy of the first appraisal, AND ask for a second appraisal. You can review the first appraisal and see if you agree with the comps used. You can also suggest additional comps for the original appraiser to consider than may help your value. I'd be willing to take a look at it for you, and at additional comps to see if I think the appraisal is fair and/or if your selling price is reasonable.
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| Posted 3/12/10 1:53 PM |
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
For the appraisal question...
Our first purchase in 2004 - they did a drive by. After the appraisal came in low we fought with the bank who told us the contents didnt matter  we paid for a full appraisal and low and behold it didnt come back much different!
Second purchase - 2006- our bank didnt do an appraisal, they said based on what we were paying vs the area average they were comfortable with the price, Plus we put about 40% down.
Refinance- 2009 they did a full appraisal inside and out....that $$ still makes me 
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| Posted 3/14/10 12:29 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
i'm confused as to how this works... so if an appraiser goes in and appraises it for less than you offered to pay, does the seller have to come down to that price in order for you to get the mortgage?? sorry first time homebuyer here, haha..
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| Posted 3/14/10 8:36 AM |
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browneyes
All moms are working mothers!
Member since 8/08 4311 total posts
Name:
Super Mom
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
Posted by jenbill61210
i'm confused as to how this works... so if an appraiser goes in and appraises it for less than you offered to pay, does the seller have to come down to that price in order for you to get the mortgage?? sorry first time homebuyer here, haha..
Yes most banks will not give you the morgage for more then the hose is worth. So the seller will have to either come down in the price or the buyer can walk away and get there deposit back.
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| Posted 3/14/10 9:12 AM |
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KartveliT
...
Member since 1/08 8363 total posts
Name:
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
Posted by CrankyPants
Posted by Salason
If you can (based on your contract), I would walk away without batting an eyelash. I would never pay more than the appraised value in this market.
But call your mortgage guy first because the decision may be made for you by the mortgage company anyway.
I agree
agree as well.
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| Posted 3/14/10 1:48 PM |
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Sandra1988
LIF Infant
Member since 3/10 58 total posts
Name:
Sandra
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
Posted by Salason
If you can (based on your contract), I would walk away without batting an eyelash. I would never pay more than the appraised value in this market.
But call your mortgage guy first because the decision may be made for you by the mortgage company anyway.
I TA 100%. Walk away. You dont want to buy a house for more than its worth AND the bank probably wont give you the mortgage.
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| Posted 3/14/10 2:32 PM |
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td123
LIF Infant
Member since 3/10 294 total posts
Name:
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
I could be wrong here, but I beleive the bank will approve the loan for the appraisal amount (with a standard deviation for LTV). If you have the funds to make up the difference between the asking price and the approved funding amount then the bank will ok it.
$20K is a lot fo money but when people are paying 500 or 600K for homes in the long run it really isnt that much difference in a monthly mtg payment if you absolutely love the home.
I went through this when we were looking at homes last summer. My house is large but there werent many recent sales in the area so we thought our appraisal came back lower than it should, although it still came back higher than the sale price. But for a few days I was worried, so I understand your dilemna and you just have to decide if it really is the house you want.
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| Posted 3/15/10 2:17 PM |
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KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
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Re: House appraised for $20,000 less then selling price and the sellers won't reduce price.
What does the appraisal report have on it? I know when we looked at the comps on our report, some of them weren't truly COMPS...meaning our house was much better than the ones they were comparing them to. Regardless, ours still came out 15k higher than we were paying.
If you love the house, do the second appraisal. Otherwise start looking again.
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| Posted 3/15/10 2:25 PM |
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