Buying A Home
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appraisal came in $15K under
sigh. advice? experiences?
My r/e agent went back to their agent -- she was shocked at the appraisal (it is pretty low)....and we're seeing what they will negotiate with, if they will negotiate. I love this house and I would be heart broken to let it go. Any advice on options?
Re: appraisal came in $15K under
That sucks.
See if the sellers are willing to lower the selling price.
Would you be able to pay the difference? It depends on how much you're willing to pay for this house.
Maybe have the sellers pay for 1/2 of the difference and you pay for other 1/2.
You could see if it can be appraised again by someone else if you truly believe its not even close to the value of the house.
No experience here, but I'm sure others on this board will be more helpful. Good luck!
I think appraisals stay on file for a period of time -- six months maybe? That means that unless they get a cash buyer they're going to run into the same issue if you walk. If they think they can get someone who will pay cash or make up the difference, they might not be motivated to negotiate.
Did your agent have any thoughts on the situation or give you a best guess as to what to expect?
No one else will want to pay more than the appraised value for the home - so the sellers can't hope to hold out for more from another buyer.
IF they can swallow another 15K loss, they would be smart to lower the price. IF they cannot do that financially, then are you willing to split the difference?
not true if your market is hot. many houses in our market are going for over listing price, appraising low, and still selling for the original offer price. there are often multiple offers and backups offers, a surprising number of which are cash, in my market. in many sales in such markets, including my own, the sellers are willing to walk if you ask for a price reduction & take another offer or wait for someone to come pay more. and will most likely get it.
talk to your agent about your own market. have him/her lay out the options for you. see if he/she can get more info on the seller's position to help you strategize. our agent laying out the options and pros/cons of each really helped us decide.
I'm pretty sure the appraisal info is stored somewhere where other appraisers could access it and see what it appraised for on that occasion.
Honestly, it sounds like you're in a great situation and you might not need to meet them half way. The fact that the house is vacant would lead me to believe that they're eager to be done with it and won't want to go back through the process with another buyer. It's not your fault and they really shouldn't hold it against you.
Yup. Our appraisal came in low, and the buyer ate it. They didn't even ask us to lower the price. That's probably because we all know the house was priced right, and the appraiser must have been smoking something.
I would definitely ask, but if the buyer is willing to budge depends on your market.
All of this is what I wanted to say
.
We were in a similar situation when we bought our house, only the difference was 5K. While the market here in the DC area is warm and the house had only been on the market for a week when we purchased it, the sellers realized that the likelihood of someone offering more than the appraisal value was low, so they just adjusted the price to the appraisal and that was that. From what I can tell, in our market, if it doesn't sell in a week or two it sits and sits for months, which just means they'll need to drop the price anyway.
So, there is hope that this will work out in your favor. Unfortunately, none of us can predict how your sellers will take this news. Good luck!
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I thought only FHA loans appraisals stuck for 6 months (so another FHA buyer would still use that appraisal value, but a conventional buyer would have a new appraisal done by their bank)
You're probably right. I wasn't completely clear on what the particulars were.
Appraisals are confidential and other appraisers do not have access to them. FHA appraisals follow the home for 6 months, but access to that report is limited to the lender, HUD and the original borrower - special permission has to be granted for the sellers to even see the report.
There are ways of getting the original appraisal thrown out, but its a tough long road.
If the appraisal wasn't for an FHA loan you have a much easier road to go down. You can ask for a new appraisal to be done, a review of the appraisal to be completed by another appraiser, or you can ask the sellers to negotiate.
Regardless of whether the appraisal was correct and that's all it's worth, the sellers may not have the room, nor the desire to negotiate. Not everyone that has their house on the market does so because they HAVE to sell it.
Good luck though, its a tough situation to be in.
This happened to us, it was $15k as well. I was heartbroken as I was 6m pregnant and wanted to move before the baby was born. I also LOVED the house. The sellers wouldn't budge - we offered to split the difference. We walked away and found a WAY better house for $50k less. True story.
I hope you are right!
That's why I'm trying to not freak out about this. There is a world of possibility out there!