I am trying to buy a house that I really like. The woman who owns it is being very stubborn and wants $105,000. I can only go $90000 which is still higher than the estimated value. If she accepts my offer but the bank appraisal comes in lower, what happens then?
2007-09-02 23:09:55 · 6 answers · asked by starrynight1 7 in Business & Finance ➔ Other - Business & Finance
Yes, I'm thinking I'm nuts. It needs a double central air unit, fuse panel upgrade and has only 1 bathroom but it sits on a hill overlooking a lake and I'm smitten with it.
What can I do?
2007-09-02 23:33:22 · update #1
There is a website called Zillow that you punch in the address and it gives you an estimated value.
2007-09-02 23:35:38 · update #2
If you are willing to pay 90,000 for it. That is the estimated value. The value of something is what someone is willing to pay for it.
The question is are you nuts. If you are, thank God your bank will save you from this terrible deal.
In many real estate markets houses sell for more than they are appraisal for. Those buyers simply must bring more cash to the deal. 20 and 30 percent down is not unheard of in California market when the values have risen so fast the appraiser can not keep up.
The seller can help in a number of ways. The seller can take back a second for the difference but the payment amount might kill the deal.
The seller may do something the remedy a low appraisal. Complete an addition, repair something the appraiser is marking off for disrepair.
shiprepairwoman - is not entirely correct. There are 110% LTV loans out there and with 10% down you could get in but is it worth it. Are you that much smarter than the banks appraiser.
Bruce J - is correct. You can walk away.
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2007-09-02 23:17:50 · answer #1 · answered by Anonymous · 0⤊ 1⤋
The bank appraisal is used in two major ways.
1. It tells you what the house is worth. How did you come up with the figure of the" estimated value"?
2. It also used at times in indicating how much of a mortgage you can receive.
Why are your willing to pay more than the "estimated value"?
Is the $90,00 dollars what you are putting into the house as a down payment or is it based on how much you think you can afford when you actually buy the house and move in.
Several other things.
Check carefully the mortgage rates and closing costs. A good choice could save you thousands of dollars.
You need a lawyer. Do not skimp here.
Get a house inspection. The house inspector should not be recommended by either the selling or buying real estate agent or the institution that will hold your mortgage, Either get a recommendation form a friend or go to a non-involved local bank.
Good luck. Buying a home is am exciting and important venture. Do it correctly.
2007-09-02 23:29:09 · answer #2 · answered by DrIG 7 · 1⤊ 2⤋
It's easy to get emotional about the purchase of a home, but it's a very BAD idea. If this house doesn't appraise for what you have offered, then don't buy it. A house is the single biggest investment that most people make in thier lives. Every $1,000 dollars that you offer is the equivelant to over $3000 over the life of a 30 year mortgage. That's money that you could be saving for retirement, etc. So, don't get emotional. You will find the right house at the right price. There are a great many good deals out there. If you don't get the deal that you want....walk away.
2007-09-02 23:24:41 · answer #3 · answered by Anonymous · 1⤊ 1⤋
Counties do not have the appraised value. That's assessed value and that mean nothing to anyone other than the Tax assessor. The market is moving all the time some area up, some down and some stable. The market and comparables will set the value of a home. Only a state licensed or certified appraiser can tell you what the value is, not the assessor or zillow or a RE agent. The county website assessed value could be high or low and sometimes by a lot, they do what is called mass appraisals. The problem with assessed value & zillow is it has no way of knowing effective/condition age of the properties.
2016-05-20 00:14:25 · answer #4 · answered by ? 3 · 0⤊ 0⤋
You can have agreement based on appraisal,or can do owner assisted finance!
WWW.4LESSMLS.COM Robert Olson Realtor/Mortgage Broker
352-351-2061 CHECK VALUE! A Bank's Loan is based on percent of value from Appraisal usually! FREE PRE-APPLICATION
2007-09-03 01:37:11 · answer #5 · answered by utex2000 1 · 0⤊ 1⤋
You can't get a loan for more than the appraisal so will need more down payment or a lower price.
2007-09-02 23:15:43 · answer #6 · answered by shipwreck 7 · 0⤊ 2⤋