(Closed) Appraisal coming in under offer price?

posted 5 years ago in Home
Post # 3
Member
7318 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

Think about it this way… you may end up getting this house for $10k less than you expected. That IS good news. And your REA is probably right that the sellers will drop their price. The only reason they would probably have to refuse the price adjustment is if the new sales price would put them upside down on the house. Since the appraised value is only $5k less than list price, the likelihood of that being the case is probably quite low. So I’d venture to say that you will benefit from this development in the end.

Post # 6
Member
13102 posts
Honey Beekeeper
  • Wedding: July 2010

This is good news.  The sellers have very little resaon to reject the change to the appraisal value.  As your realtor said, they’ve already invested money into this closing and future potential purchasers aren’t going to pay more than the appraisal value either so it really doesn’t benefit the sellers at all to put the house back on the market.

Post # 7
Member
7318 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

The bank is going to look at the bottom line. Every day that the foreclosure sists on their books is another day that they cannot foreclose on another property that is delinquent. So it is in their interest to let this one go, especially since it is only $5k under asking price.

Post # 8
Member
1471 posts
Bumble bee
  • Wedding: August 2011

Ours was bank-owned and the appraisal came in right at our offer (which was under the asking price0, but also said we absolutely needed to have a few repairs–mostly small, but one was a new roof!! We thought that might be the end of the deal, but the bank ended up paying for a whole new roof. I can’t guarantee a positive outcome, but these days banks want houses off the market, so hopefully they’ll drop the cost. 

Post # 9
Member
2697 posts
Sugar bee
  • Wedding: June 2012

Banks let homes go way easier than people. You should be golden.

Post # 10
Member
1281 posts
Bumble bee
  • Wedding: January 2012

Updates?

Post # 11
Member
10369 posts
Sugar Beekeeper
  • Wedding: September 2010

Was it a multi-offer situation? We are expecting to hear back about an appraisal today for a condo we’re purchasing. We’re on pins and needles! The bay area is so crazy right now – everything we’ve bid on has had 10+ offers, so we’re afraid that if this happens to us, they’ll just move on to the next bidder and hope their bank comes back with a higher appraisal instead of dealing with us 🙁

Post # 12
Hostess
18623 posts
Honey Beekeeper
  • Wedding: June 2009

I had the same thing happen with mine and we either had to come up with the extra $5k or have the purchase price reduced.  Thankfully, the seller took the reduction because we wanted the equity!

Post # 13
Member
868 posts
Busy bee
  • Wedding: September 2011

I think that as long as there aren’t multiple offers, the ba nk will approve lowering hte price to the appraised value.  If they don’t, they’ll have to wait for a buyer who CAN afford to put the additional $10k down- which is a LOT of extra money.  They’re this far in to the process, it seems unlikely that they’d cancel the whole deal over a $5k difference in price.

GOOD LUCK! Let us know how it goes.

Post # 14
Member
2376 posts
Buzzing bee

Since it is bank owned I think it will work out for you guys. 

My in-laws sold their house a few months ago. On the first offer, the appraisal came in really low, like $20,000 less than the contract. My in-laws read over the appraisal and disagreed with most of what was written. They were not willing to come down so the contract was voided. 

They had another offer not long after and had someone else do the appraisal. The house appraised for about $20,000 more than the first time. 

Post # 15
Member
10369 posts
Sugar Beekeeper
  • Wedding: September 2010

@MRSLMA:  It totally depends on what market you’re in as to whether $10,000 is a lot of extra money. That’s a rounding area in the bay area market, but in TX where I grew up, it’s 10% of the total price of a house! With houses starting at half a million (for one in poor shape where I live) $10,000 would be expected to be brought to the table as extra money from the buyer, I bet.

The topic ‘Appraisal coming in under offer price?’ is closed to new replies.

Get our weekly roundup of the best of Weddingbee.
I agree to receive emails from the site. I can withdraw my consent at any time by unsubscribing.

Find Amazing Vendors