we are looking at a house, the house isgoing for $124,000 and it is appraised for $74,500.?

Question

it is 4 ac of land and has a stock pond with a small pier like walk, 4 bed 2 bath prefab home sits on a slab, it is not a mobile home, it also has a tack room and another work building, 2 car garage horse stables, big trees, awesome schools. does anyone think this is a good price, and does the owner have to sell it for the appraised price? How can we get the owner to go down on the price?

Answer 1

When sellers put a price on their homes they sometimes forget two things. One is what the appraised value is and the other is what someone will actually pay. I just recently went through the home buying process and had a seller tell me that my offer wasn't good enough and her home was worth much more. My response was that her home was only worth what someone was willing to pay and I wasn't willing to pay her asking price. It has been three months since I looked at that house and it is still on the market and she reduced her price to what I offered three months ago.

What it boils down to is finding out what houses in that area are actually selling for and compare that to the asking price and the appraisal. Then go from there. My guess is the owner has a deluded sense of what the market will bare and you would be wise to look elsewhere. By the way, your Realtor can get you that information.

Answer 2

You would probably want to get another appraisal, even with the low market it does't sound right for what you describe.
Appraisers are a penny a dozen and from what I have seen around here in Washington most are simply not to be trusted, sounds like you have some bad apples out there too.
I think the only way the place you described would appriase so low is if it were a toxic waste site or something was seriously wrong with it.
Since you are financing, the bank will push for paying only their appraised price but it is still up to the seller and if I was the seller I would hold fast, 124 sounds very fair in any market.

Answer 3

The sell can ask any price he wants.

You can offer what ever you want.

I would think that $74,500 is the value for tax purposes.

The appraised price is use for loan purposes. If that is the case you would need a much larger down payment with a $74,500 appraised value & a $124,000 selling price.

Only some one living in the area & knows the value of other buildings can say if it is a good price.

If the property is in good repair I wouldn't think that the price isn't so bad. The value for tax purposes always follows behind the market value.

Answer 4

You do not want to pay more than the appraised price. The bank will require a down payment over $50,000. They won't loan money on a house for more than the appraised price because if the had to foreclose on it they would never recover what they have in it. They are marking up the house by $49,500 then you would have to come up with that plus around 10% of $74,500 for a down payment. Also make sure you can insure the house for that amount.

Answer 5

You probably will not be able get a loan that far beyond the appraised price. If you really love the house,plan on living there for a long time,and see real estate prices rising in your area,then it's up to you if you want to shell out the difference. Consider talking to an insurance agent to see if you could even insure the house for the amount you're paying before going forward. You could always offer the sellers a price and see what happens.The worst that could happen is they'll turn you down. If the property stays on the market a long time and they really want to sell,they may reconsider 6 months to a year down the road.

Answer 6

I would recheck and see what appraisal is being used (tax or actual value). I agree with others that the property sounds like it would sell for way more than the appraisal you are basing on. No need to lose a house you like by getting bad info. Good luck.

Answer 7

youre nuts if you buy a house that is that much over appraised price, what if something happens and you have to turn around and resell, chances are you are going to be out a lot of money, sounds to me like these ppl dont really want to sell, most realtors wont even take on a home like that. also, nobody in here can tell u if that is a good price, it depends on location and none of us have any idea where its located

Answer 8

I would not pay more than appraised value, that assessor saw something that caused him to say that, I fell in love with a historical old italianate? home and owner wanted 80 grand and it was appraised at 35 because of all the work that needed done and we just bought another since they would not go down, check huds website they sometimes have acreages I think, we bought ours through them value 92000 and we paid just under 68000

Answer 9

in most cases you will have a hard time getting a mortgage for more then the appraised value of the home. banks don't want to take the chance that if you default they wont be able to get their money back. If you want to try it, make a offer close to the appraised value stating this fact. good luck.

Answer 10

i think floyd is right. are you looking at the county auditors site? you cant go by those prices if your looking to buy. need a relator to pull comps in the area. sounds nice for 124k.