we are buying a home that appraised VA 5k below builders selling price. He would not budge at first. Then we found out that one of the comps that were used shouldn't have been since that was a destressed sell. Our lender told them to pick 2 new comps.( they got to choose them not the appraiser) after the lender looked at them she said that they did not help his cause and still justified the lower appraisal.
2007-05-10 16:31:16 · 4 answers · asked by KM 3 in Business & Finance ➔ Renting & Real Estate
we have signed her as a buyers agent. One minute she agrees that we should not have to pay the over pricing then see seems like she is on the builders side so she doesn't burn any bridges for future sales. The builder picked the comps this last time and they still proved the VA's appaisal to be on target. Another house that he is selling they are using conventinal and the same destressed house was used in that appraisal also. He chose the comps for re evaluation of the appraisal and the still suport the appraisal.
2007-05-10 17:13:39 · update #1
also the builder wants us to split the 5k. We would still be paying more than the house is valued at. He keeps saying if we went conv. then it would appraise right. Not true from what I said already. I don't understand why he won't be fair and drop his price for a closing in three weeks. He has more than 5k of profit in a $253,000 house.
2007-05-10 17:17:24 · update #2
to reply to My corner... A benifit of us using VA is so we don't over pay for a house and it's not the house of my dreams. We will only be in it for 4yrs. It will take us 3 just to break even with over paying the $2500. Plus we are trying to sell our current home in Texas. Our buyers agent worked directly with the builder who has no selling agent. He picked the new comps not us and it still did not warrent his price. I don't care for the drama but why should we have to pay more than the market bares at the time. We are being fare with our house here in Texas by setting it at the appraised price. We aren't being creedy by asking more than it is worth even though it is worth more to me.
2007-05-11 14:02:49 · update #3
If your agent is not working aggressively for YOU then fire them and get a new agent. If you signed them as an agent they have a fiduciary responsibility to you and not the seller. The market is fairly soft right now, there is NO reason to pay above market value. If your agent continues to give you grief, call their broker and ask for their assistance or for them to assign an agent to you who will work for you. I'm an agent and I would not allow someone to try to convince me or my clients to pay above appraised value.
2007-05-13 02:48:18 · answer #1 · answered by Anonymous · 0⤊ 1⤋
That's one of the risks with VA loans. The VA selects the appraiser instead of the mortgage company. And they are notorious for coming in low. It almost feels like they think they have to come in low every once in a while, just to seem all nice and conservative to keep the orders coming.
The VA mandates that if the appraisal comes in low, and you don't have the ability to pay cash for the difference, and if the seller won't reduce their price, that you get all your money back (except the appraisal fee). The builder cannot retain your earnest money.
So your builder has 2 choices. Drop the price $5K, or give you all your money back and sit on the property for a while until a new buyer comes around. Which might take a couple months, and no guarantees of getting the same price either. If it were me, I'd probably cut the price, take the money and move on.
So push on it. Talk to the builder directly if need be.
2007-05-10 23:46:01 · answer #2 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
Appraisals are just an opinion. It isn't an exact science. Another appriaser may have valued the property $5000 over the contract price.
If your agent is truly a Buyer's Agent then they have no contact with the Seller. Your agent contacts the Listing Agent and they talk to the Seller. So, it doesn't matter how "aggressive" your agent is because the Listing Agent isn't going to be aggressive when they relay the information.
I think you need to take a step back and realize that it is only $5,000 and the Seller is willing to split the difference with you. For only $2,500 more you get the house of your dreams. Is it really worth all this drama for $2,500?
2007-05-11 12:37:05 · answer #3 · answered by mycornerofbrickheaven 3 · 0⤊ 0⤋
Who are you asking to be more aggressive here ? A real estate agent? If so, is this real estate contracted to work for you as a buyer's agent? If not, he probably defaults to being responsible in a fiduciary form to the seller, and NOT to you.
2007-05-10 23:37:51 · answer #4 · answered by acermill 7 · 0⤊ 0⤋