the man who valued the property we are buying has valued it ten grand less than what we offered?

Question

if they cannot afford to drop there price we will have to find a new prop, we have a mortgage in place, will we have to take a new mortgage out ?

Answer 1

you will not have to go through the whole bank process again, if that's what you mean. you've already been preappoved by the bank, they'll go through with the paperwork once you've settled on one house. nothing's in stone yet, don't worry

Answer 2

First step is to go back to the table and try to negotiate the price down to what the appraisal came in at. You don't want to pay more than the home is worth, obviously. If you're lucky, the sellers will understand that if they don't drop it, you're not going to close, then they lose more time putting the home back on the market. And they'd probably have to lower the price when they put it back up anyway. So, they should take your "bird in the hand"

If this one doesn't work out, your preapproval should be able to be modified to any new property you choose that's in the same price range.

Answer 3

The bank appraisal is only to see if there is enough value to cover the loan amount. If the property is $100k and you are putting down 10K thew the bank only wants an appraisal for 90K.
If the appraisal is for more than the amount of the loan then underwriting begins questoning it. I've seen appraisers stop at the front door.
It probably means nothing.
Appraisal, assessment and Market Value are three different things many times unrelated.

Answer 4

1st make sure the man who set the value of the property actualy has seen it. Some people just slap a value on it and never check it out. This was a problem in Erie PA.