Understand that I have seen the cost sheet from the title company and the seller owes $113400 on his home. I offered $119900 but the appraisal came in at $113500. Therefore the seller does not want to decrease his price. I do not have the $6000 difference it will take for us to come to terms on this offer. The seller has contacted his lender to ask if they will take a short sale on the home but if that does not happen does anyone have any suggestions as to how we could get this deal done? I want this house!
Thanks for your input
1st time homebuyer
2007-10-21 13:59:24 · 7 answers · asked by Renaisannce Man 1 in Business & Finance ➔ Renting & Real Estate
A house is a house. Don't make it an emotional decision (I really want this house!!). That is one of the worst things you can do.
Are you saying that you plan to finance 100% of this house? That's a very very bad idea. Have you read the news in the last six months?
If he won't come down, and you don't have the difference, then you have to pass. Sounds like "it wasn't meant to be".
2007-10-21 14:04:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Depending on what type of Mortgage you are getting ... YOUR lender will ONLY loan you a percentage of the appraised value of the house. For example ... If it is an FHA
mortgage ... FHA usually loans you 97% of the property's
value. Meaning on a $100,000 house; FHA would ONLY lend
you $97,000 and you would be responsible for coming up
with the other $3,000 PLUS your closing costs. (You could
also ask the Seller to pay "some" or "all" of your costs ... But
that would further reduce the Seller's Net gain)
You "could" get 100% financing ... meaning you could get a
Mortgage that loaned you 100% of the property value ... But
that would mean a HIGHER interest rate for YOU ... because
you would be considered a higher risk ... Because you are NOT investing any of your OWN FUNDS.
In most cases where the appriased value and the purchase price differ ... This difference "has" to be negogiated. And in THIS type of market .... I would "think" that the Seller would HAVE to assume the loss .... Because "chances are" ANOTHER buyer's appriasal will ALSO come in LOW.
Wait to see what happens with the "Short-Pay" request ... Then hopefully YOUR Realtor can negogiate something favorable (for you) ... with the other Agent. (I trust that you
have a Realtor working on YOUR behave!)
2007-10-21 15:47:30 · answer #2 · answered by kjh 3 · 0⤊ 0⤋
The lending institution will lend money on the lesser of the appraised value or the offer price. If your contract has an appraisal clause "subject to appraisal" you could get out without penalty. Any costs you paid are yours, like inspection or appraisal fees.
Your options are the bank agreement to a short sale, coming up with extra downpayment or have the real estate brokers reduce their fees.
If you are not at the best rate for your mortgage see if you could get a better rate or a longer term which will reduce your monthly payment and may qualify you for a higher loan amount
2007-10-21 14:40:01 · answer #3 · answered by Niko 1 · 0⤊ 0⤋
the 1st 4 posts are incorrect. First, what form of mortgage are you getting. If VA or FHA, you have the incredible to stroll away and get your money decrease back. although, you additionally can take the decrease appraisal and pay the 2000 at settlement OR artwork out a cut up (or all) with the broking. 2d, what does your settlement say? If ought to handle this subject. third. If the settlement would not' handle the difficulty and you're no longer getting a VA or FHA mortgage, they you should settle for the appraisal and pay the 2000 at settlement, till you are able to artwork out a cope with the broking. communicate including your agent
2016-10-13 11:26:56 · answer #4 · answered by ? 4 · 0⤊ 0⤋
split the cost in 1/2? Maybe you are the only offer too! They may have to reduce the price of the home now. You may want to wait. If the market is not good there, it will then sit and they may want to get out sooner than you think. they will play that game w/you, so either offer them 1/2 of it, or sit and wait. believe me, another house will come along.
2007-10-21 14:07:55 · answer #5 · answered by Dee 4 · 0⤊ 0⤋
the value of the house is $113,500. no ifs or buts. and don't get emotional about the house. here is a qualified appraisor giving you the house value, to ignore it would be unwise.
tell the vendor you won't get finance at $119,900. he doesn't want to decrease his price BUT he's gonna have to accept the appraisal value if he wants to get a sale here. this kind of thing happens regularly. this is not a "one off" occurence. this is exactly the type of situation that appraisal's are used for.
once again, at the date of appraisal, the house isn't worth one cent more than $113,500.
2007-10-22 01:28:01 · answer #6 · answered by 6billionfriends 2 · 0⤊ 0⤋
You might have to walk away from the deal. Dropping the price, but still above what they owe, wouldn't be a short sale.
2007-10-21 14:13:50 · answer #7 · answered by Judy 7 · 1⤊ 0⤋