Is it too much to ask a seller to lower the price they asked for?

Question

We have a signed contract for an amount we adjusted to include closing cost. The appraisal was lower than asking price on contract. Our lender will not lend above the appraisal value. Is it too much to ask for seller to drop his/her price. Also keep in mind, there is a climbing wall which came with the house, and was included in contract, shortly thereafter,the seller has removed hundreds of dollars worth of the stones after contract. Is this a negotiating point too? Please help, first time buyer.

We paid for the appraisal. The Seller is asking to see it. Should we give them a copy of the appraisal?

We are already approved for financing, but lender will not pay above house appraisal.

House passed inspection. Only needed very minor repairs.

Answer 1

By all means. Yes! however , I wouldn't be asking nor would I be demanding. The best approach is a non-confrontational statement of facts approach that goes something like this: Our lender has sent out his appraiser to your house. The dollar amount they are willing to lend does not provide sufficient funds for us to consummate the purchase of your house at the price we thought we would be able to pay. We still would love to buy your house but to do so we would only be able to pay "X". If this is agreeable to you please let us know ASAP as we will need to continue our house search if it is not.
Oh, by the way someone has removed part of the climbing wall that we had both agreed would remain and I have 3 estimates attached to this letter for what it would cost to put it back in the condition it was in when we reached our agreement. This also needs to be addressed either thru the replacing of the missing portion of the climbing wall or the retention of "X" dollars in escrow to cover the cost. Thank you. We look forward to hearing from you and hope we can work out these details speedily.

DO NOT CLOSE ESCROW UNTIL YOU ARE SATISFIED. Everyone else makes money when you close. The seller, lender, Realtors, title company etc. YOU HAVE THE POWER TO HAVE IT YOUR WAY UNTIL YOU CLOSE ESCROW THEN IT ALL GOES AWAY.

Answer 2

On government insured loans - FHA and VA - there will be a statement in the contract that the buyer can back out if the house doesn't appraise for the sale price. The seller has the right to drop the price to the appraised value, and then the buyer is still bound by the contract (at the lower price).

If your loan is a conventional loan, then the "automatic escape clause" is probably not there. Since you needed help in closing costs though, I suspect that you have 100% financing. If this is the case then the lender won't do the loan for more than the appraisal, and you have an out.

The problem you may face though is that the seller is already "giving away" the amount of the help in closing costs.... He may be willing to lower the price, but at the same time drop the help. This would be to try to maintain the "net" that he had been expecting.

"Negotiating" is give and take. Right now, the deal may be on it's deathbed. To revive it, you need to decide if the closing cost help or the wall are more important to you. The seller apparently likes the wall. Maybe he'll lower the price and still give some of the help, but you give up on the wall (and maybe other things too) in an effort to balance out the dollars.

Good luck.

Just read your point on the seller requesting to see the appraisal. If I were the listing agent, there would be a ZERO% chance of lowering the price just because you told us the appraisal came in low. I would need to see it and compare the comps the appraiser used. Yes, to get this done you need to turn over a copy.

Answer 3

The contract you signed most likely had a financing contingency, which protects you in the event you are unable to obtain financing.

Since the property failed to appraise at the level that would allow you to obtain the required financing, you can either be released from the contract or renegotiate it.

Further, if the seller made alterations to the property that reduced the value, you are, of course, entitled to seek relief by requesting a lower price.

My suggestion is that you figure out exactly what you are willing to pay for the property and make the seller a first, last and best offer, taking into account the appraisal and the removal of the stones AND any issues with the property inspection.

No inspection??? Include an inspection contingency in your offer. If the seller is not above removing assets that were included in the sale price, he is not above hiding defects in the property. Caveat emptor!

Answer 4

Several things are going on here. It seems that the main concern for you in this purchase is the pricing. I think it is absolutely okay to ask the seller for a reduction, show him the appraisal and negotiate further do to the altered state of the house from its original condition. Besides, if the lender will not lend above the appraisal value, are you all going to have the extra funds to bring to close and is the lender going to approve this in underwriting stages? Hopefully you have a realtor to speak up for you before it is too late.

Answer 5

A rock wall is a "fixture", which means that it is part of the house you agreed to buy.

By removing the stones, the Seller has altered what you were buying.

You should have an attorney, but basically you can renegotiate the price, or back out of the contract, get your deposit refunded, and possibly hold the Seller responsible for your appraisal costs.

Answer 6

yes ask for them to lower the price. You also need to know that the readjustment of the contract could raise the percentage rates. Point out that they have removed the stone from the climbing wall and it was a selling point. Either they bring back the stone or they lower the price, It depends how badly you want the house.

Answer 7

You most definitely should negotiate a new price since the old is above value. Show them the appraisal which should serve as a reality check for them.

Answer 8

the employer doesnt would desire to accept as true with the valuation checklist accomplished by using the surveyor, he would desire to positioned the domicile returned up on the marketplace regardless of the undeniable fact that it can not sell no be counted if that's overpriced, in no way pay extra for a sources than what it is been worth. My suggestion could be to tell the seller which you're in basic terms prepared to pay how plenty the home is nicely worth and if he doesnt comply with reducing the value then start up finding for yet another domicile.

Answer 9

We were first time buyers as well. We were buying from a STINGY real estate gentleman, however they wanted to get this house off their hands - so all you can do is ask. We did and he did (lower the price). Especially in YOUR situation! Don't be anxious to get this house if the pricing doesn't work for you. Whether you believe it or not - God is the one to ask on this. If you are hitting too many walls - God may not want you there. Good luck and God Bless!!!