If the appraisal comes in lower than the asking price of the seller. I know that the lender has the option and probably will regect the loan but is there anything that can be done so that we get this house?
2007-01-25 21:36:35 · 6 answers · asked by Bignuts808 2 in Business & Finance ➔ Renting & Real Estate
Appraising is not a Science, it is an educated opinion based upon the comparables used and adjustments made based upon the appraiser's "opinion" of how much they should be adjusted. If you have 10 appraisals on the same property, no two will come out exactly the same. How about getting a different appraisal? Your lender should know some appraisers that he/she trusts to critique the original appraisal to see if some things were overlooked or ommitted. It will cost you a few extra dollars but it might be worth it. Also, the lender can ask the original appraiser to reconsider with new comparables. Ask your Realtor to supply the appraiser with better comparables. If it truly is overpriced, get the Realtor to "renegotiate" the selling price for you. The seller should come down since they now know their home is overpriced.They want to sell it just as bad as you want to buy it.
2007-01-25 23:27:06 · answer #1 · answered by dreamgirl 5 · 0⤊ 0⤋
The appraisal is only to assure the bank that it is worth AT LEAST what they are lending out. It has nothing to do with realty.
If you are borrowing $180,000 and putting down $20,000 then the bank wants to see an appraisal of $180,000. Underwriters get nervous about appraisals that are over the loan amt. I don't know why but they are a different breed of cat.
I tell my clients that the assessment, the appraisal and the market value are three different things unrelated to one another. That's the way it is.
2007-01-26 02:43:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Then you would need to amend the purchase price to reflect the fair market valeu since the seller will probably NOT be able to sell if the property is priced ABOVE market.
A lender will advance based on the lesser of of purchase price/cost or appraised value. So go back to the Seller and amend the price....
2007-01-26 00:10:23 · answer #3 · answered by boston857 5 · 0⤊ 0⤋
If all else fails and the appraisal comes in lower than the purchase price, there is a standard clause in all purchase agreements that lets you out of it. Then you can renegotiate the purchase price to match the appraised value, and the bank will give you a thumbs up.
2007-01-25 23:55:40 · answer #4 · answered by togashiyokuni2001 6 · 0⤊ 0⤋
Put more money down. The lender will just base the LTV on the lower of the appraisal or contract price. While this has certainly happened, I'm concerned it is happening in this market. Unless you are aware that you were paying too much, I would seek some additional counsel from trusted sources (attorney, accountant, additional Realtor, relative, etc).
Joe...
2007-01-25 21:44:07 · answer #5 · answered by Joe K 3 · 1⤊ 0⤋
i've had appraisals less than the agreed price and the bank sent the appraisal back for a 2nd evaluation with the same company (rather than pay for another appraisal).
the next one came in higher......
had it been lower I would have based this on renogotiating a lower price with the seller on the home
in the original offer I stated to the owners......my price, and I firmly would walk if the appraisal was bad....
so..the sellers knew right off...that I would be re-nogiating..if the appraisal was poor..
so summation .... you can ask the bank for a re-evaluation
go back to the seller..
or go 50/50 between the seller's appraisal and yours..
but this is money out of your pocket..it is not money..the bank will lend you...your bank...is basing their appraisal..as theirs and combining it with your lending /loan......and will allow one re-evaluation..........
so you have to love the house..........(cause it will come out of your pocket) or walk........
sorry.............
2007-01-26 00:01:49 · answer #6 · answered by m2 5 · 0⤊ 0⤋