House appraisal

posted 3 years ago in Home
Post # 3
Member
2642 posts
Sugar bee
  • Wedding: September 2012

You would go back to the seller and renegotiate the price.  A home appraisal should be a contingency in the contract in some form or another.   We had a financing contingency in our contract and the bank required an appraisal before agreeing to loan us the money (part of the contingency). From my understanding the sellers usually agree to lower the price.

 

 

 

Post # 4
Member
8907 posts
Buzzing Beekeeper
  • Wedding: August 2013 - Rocky Mountains USA

You can’t a mortgage loan approved for more than the house appraised for. 

Post # 5
Member
683 posts
Busy bee
  • Wedding: June 2012

Several things can happen……

 

The bank will not approve a loan for more than the appraisal value, so…

 

1.  You guys can choose to make up the difference and pay an extra $2000 in cash

2.  The seller can lower the price to the appraisal price

3.  You and the seller can negotiate

4.  You can walk away

 

 

Post # 6
Member
757 posts
Busy bee
  • Wedding: May 2014

is this a VA loan by any chance? I know the VA won’t let you offer for more than what they appraise the home for.

Post # 7
Member
3280 posts
Sugar bee
  • Wedding: June 2014

You could just put down $2,000 outside of the loan if the seller’s wouldn’t come down on the house, which you should try hard to get them to do because that’s how much the house would be worth if you were to sell it.

Post # 8
Member
10490 posts
Sugar Beekeeper
  • Wedding: January 2011

It’s similar to making up the difference yourself – you could reduce your downpayment percent.  Ie.  If you were going to put $17500 down (25%) you could use $2000 for the difference, and your DP would be about 23% of the appraised value.

I don’t know what the lenders use as their cutoff though, I would guess they have some error built in.

Post # 9
Member
10490 posts
Sugar Beekeeper
  • Wedding: January 2011

You could also request another appraisal if you thought the first was low.

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