We recently put down $5,000 earnest money (required by the builder) for a house we want to buy. But, I have been looking at recently sold homes in the neighborhood and none of them are as expensive as the one we want and ours is a little smaller then the rest of the house's recently sold. If the bank appraiser doesn't appraise the house for the asking price, can I get my earnest money refunded and back out of the deal?
2007-03-10 13:57:08 · 5 answers · asked by kelbell80 2 in Business & Finance ➔ Renting & Real Estate
If the house does not appraise, you have three options; 1) put up the difference in cash, 2) Have the seller come down to the appraised amount or 3) request a cancellation of the transaction. If you have purchased a home and the bank says they do not think it is worth what you agreed to pay, they will not make the loan therefore you can not purchase. Unless there is working in your contract that is spacific to this situation then the guidlines I have stated above should hold true. I have been a real estate agent for 25 years.
2007-03-10 14:24:04 · answer #1 · answered by garyandpamella@hotmail.com 1 · 0⤊ 0⤋
NOT REALLY: You can adjust the price of the sale.
The amount of earnest money you paid says you are serious about business. If the property does not appraise as someone would wish, that is no reason to not buy the property that you wanted.
If the agreed sales price can not be accomplished, then the earnest money can be returned. If you wish to back out of the purchase, you will catch HELL trying to save the money from loss.
2007-03-10 14:07:10 · answer #2 · answered by whatevit 5 · 0⤊ 0⤋
Usually the contract will have a financial contingency based on the appraised value and your ability to finance. If other homes in the same development have sold for a comparable price it will appraise regardless of existing homes in the area. If you used a contract supplied by the builder and not approved by your local Realtor or real estate commission and it does not include the contingency clause, you may have a problem. If so, contact a lawyer.
2007-03-10 14:02:48 · answer #3 · answered by GreaseMonkey 3 · 0⤊ 0⤋
As long as your contract is contingent on appraisals you have the power to accept the appraised value. you should always get more than 1 . usually the mortgage company or Sellers agent will pay for it. all contingent contracts can be withdrawn. but the earnest money refund is usually decided by the seller. if its a hassle, its not worth the court cost to fight it. but if your agent is good, they can get it back. in most states there is a 3 day rescission law to on any real estate or auto purchase. be sure to read your contract thoroughly
2007-03-10 14:53:23 · answer #4 · answered by erinatchurchstreet 1 · 0⤊ 0⤋
It depends on what the contract says that you signed. It almost always includes a clause that if you can't get financing, you can back out and get your earnest money refunded. But if financing goes through, you probably can't back out just because you don't feel that the house is worth what they're asking, or isn't worth what you offered.
2007-03-10 14:26:33 · answer #5 · answered by Judy 7 · 0⤊ 0⤋