Post # 1
I’m kinda freaking out here :(. My house WAS supposed to close last week but due to an appraiser not doing their job, it got postponed to THIS week. So the appraisal came back $2k under what my offer is at. I’m not sure what to do because idk if I should pay top dollar for the house. But my lendor said my realtor had already contacted the seller & they’re willing to negotiate but that’s all she’s heard from her. Her cell phone doesn’t work when she shows property in a certain area out of town, so that’s where we think she is.
If the house doesn’t close than I don’t get the $8k tax credit :(. No way could I find a house that I like & get a signed contract this week. I have no where to live as it is & am staying with FI family but I can’t do that too much longer. I was supposed to be out of there a few days ago cause the house was supposed to close the 23rd. I have no money saved up to rent a place due to my crazy roomies.
This is just not a good day :(. I’m really glad I just got coffee on my break.
Post # 3
As long as you are under contract before the end of the month and close before the end of June, you will get the credit. It sounds like you are under contract so I don’t think you have to worry about the credit.
It sounds like they are willing to negotiate and want to sell the house, I’m sure they will work with you.
Post # 4
$2,000 is a pretty small amount in the total value of a house. Remember that the appraisal is just an estimate and not a guarantee of a specific price tag. Depending on how long you plan to own the house, it’s likely that you could make small improvements over time that would raise the property value. Also, lower property value = lower real estate taxes!
Post # 5
I’m told we have to re-negotiate now. So I’m not sure if that will make the contract past the deadline & I can’t get ahold of my realtor who is probably just as suprised as me! I can’t believe the house is valued under, we were told it was estimated as $10k over value, but that was just an estimate.
& the bank won’t lend us more than the house is worth & I don’t have $2k. Not even close. So I’m not sure what we can do from here on out.
Post # 6
Oh my gosh hun I’m so sorry. It must be the time for things to suck when it comes to closing on April 23rd. We were also suppose to close on April 23rd but because our mortgage lender totally sucked we couldn’t close by then. The loan officer sat on our paperwork and never submitted anything and then at the last minute kept telling us all this stuff we needed and then told us that we wouldn’t be able to close by the 23rd. Our real estate agent called him and he told him that we would not be able to close until the end of May!! I was like oh hell no…not an option. We’re getting married in June. We need to be all moved in by the end of May…not to mention that we had given notice at our apartment and the landlord had already re-rented it. Also, we bought all new appliances for the new house that are in a storage and I want them out cuz I’m terrified that something will happen to them. I was pissed to say the least. We ended up going with an entirely different mortgage company who says they’ll have us closed on May 7th. My contract is already signed so we’ll still get the credit. Thank God!! Now I’m in a fight with the first mortgage lender to get my money back for an appraisal I paid for on the 12th of April and they didn’t order til I filed a complaint with the BBB on the 22nd. Just a nightmare!!
Post # 7
Eee I’m sorry msmonika… but glad it all worked out :).
So I just talked with my realtor & idk what they’re doing but they’re going to lower the price of the house, the sellers will pay less closing costs & the price difference will be worked into the loan. I was told they really wanted to go thru with the house. I’m not sure what to do now. I don’t want to buy a house without ANY equity if its at the top of my price budget :(. I feel so stuck.
Post # 8
our appraisal is weird, we have a va loan, and they only tell you if the house is/isn’t worth what you offered.. so our’s was probably pretty close in price..
Post # 9
As long as you’re not planning on moving in the next few years, you’ll be fine. Appraisers are a bit more conservative now in the valuation of their houses because of the housing crisis. It’s OK of the appraisal comes in right at the bid as long as you’re not planning to flip the house.
If you’re planning on staying in that house for at least 5-7 years, you’ll build up equity slowly and won’t lose out to closing costs/commissions/etc.
DO ASK about the closing costs. If the seller is covering less of them, you might need to come out of pocket for the remaining amount. Make sure it doesn’t affect your out of pocket closing costs.
Also, make sure you can AFFORD the monthly housing payments.
Post # 10
I agree with MissCremeBrulee. You need to make sure you can afford the monthly payments and I strongly encourage you to get your savings started for something unforseeable to occur, even if it’s $500. Home ownership comes with a lot of financial surprises. If I were you, I’d walk away if they aren’t willing to drop the price and get the contract by the end of April. Also, the $8000 tax credit is great but please don’t use that as a reason to jump into a house you can barely afford. Hopefully, your in-laws will allow you to stay with them for a few months so you can get yourself back on your feet if your house doesn’t work out.
Post # 11
I was in your exact same position just last week. Except our house was appraised $15K less than the sales price. We were shocked, the buyers were furious, and then I was convinced that we would loose the house. Well, this weekend the buyers lowered the price to the appraised value and we agreed to pay closing costs (they were orginally going to pay those).
Honestly, $2K isn’t very much and there is a good chance the sellers will just come down. I highly doubt they want to put the house back on the market and wait for offers for weeks and/or months just because of a few thousand.
Post # 12
2k isn’t really a lot of money is the big scheme of things. I can’t possibly see them putting their house back on the market for 2k so hopefully they will come down in price. A lot of buyers already have a new house lined up for themselves so if they let you back out on the sale they will mess things us for themselves and their new home as well.
Did your purchase and sale state that the sale was contingent on the appraisal amount?
Our came back with $100 in equity lol
Post # 13
I guess im in the minority on this. I paid 50k LESS than the appraisal! And have put about 15k into the house & will prob be putting in another 5-10 within the next year before we list it.
But when I sold my previous house the buyers wanted ALL the appliances removed (I sold them on CL and made $$$) which made it appraising 2k less than the list price (which they were paying) so I just had to drop it 2k for the sale to go thru
Post # 14
I voted for 5-10 less. We however had a conventional loan and bought a foreclosure.
I’ve been following your saga… on a few topics, and I’m really concerned for you. Actually, I had concerns all along, but I’m seriously starting to panic when I read more and more.
Owning a home is crazy expensive. We closed on ours a few weeks ago, and the time and money it’s taking to get in it (we’re not in yet) is insane. Things go wrong, the inspection saying we need a new air handler actually was that we need a whole new A/C. That right there is at LEAST 2k more than our estimated repair. Ripping up carpet we found moisture damage to the sub-floor not found in the inspection. We can rip that up ourselves, but we have to have someone come replace the joists that are crumbling as well. Thats more money.
If 2k is going to break your bank…. walk. away. now. If you don’t have 6 months of mortgage payments set aside for emergencies, walk away. I know your wedding is coming up, and I know YOU are trying to set things up right, but I have a lot of concerns for your future. As I’ve said before, your like me, there’s no take backs after walking down the aisle and saying vows. And there’s no give backs once you buy the house. If something happens to you, FI doesn’t have a way of paying the electric bill let along the mortgage… it seems to me your taking on too much and I’m afraid the big picture is a lot bigger than you believe.
Please, find a financial advisor and speak with them before closing on this house. And, even after your last response I’m still not so sure that you moving forward with a wedding NOW is the best. I still think you guys need time to hold off and get your FI on track, and I’m not sold that buying a house now is the right decision. It even sounded like the one your trying to close on was a lot smaller than you wanted and compared to the other one and that your settling…
Sometimes, you just need to evaluate if God’s trying to say something to you… There’s lots of hoops to jump through in buying a house, but sometimes, the hoops are too big for a reason. Don’t let living in the FILs house hang a guillotine over your head. There’s other ways to find cheap housing while saving up money and getting your FI on track…
Post # 15
Lower your offer down to the appraised value! Hopefully you put in your offer contract and paperwork that the offer was dependent on the appraisal. There is no reason why you should pay a penny more than the house is worth.
This is exactly what happened to me and my FI. I voted for within $500 of the appraised value. We would have been justified in lowering our offer even more, in my opinion, when the low appraisal came back.
Post # 16
So, the sellers went down the $2k but will contribute $1k less in closing costs. My down payment is less than before. My interest rate is higher thou my monthly payments are practically the same. They had estimated everything high before, now they estimated right at what some things are.
The house has gone SO smoothly up until now! FI & I are wondering if its God’s way of getting us out of a bad situation, or if its a challenge. We’re at peace with “letting go” of the house & waiting til next year. FI’s dad said we could live at his house for awhile. Not ideal being married, but his dad owns his house & we’re pretty sure we can build a small wall & put in a door so that we get 1/2 the house to ourselves. Or his dad might buy a place & we’ll pay him rent. We don’t have the money for 1st, last, deposit.
Pros about NOT getting the house:
1. I can go to part time during the summer & FI can work part time. We’ll have more time to spend together.
2. Save money this year if we live with FI’s dad (he said we could live there temp).
3. We won’t have a mortgage payment that’s the entire amount of 1 of my 2 paychecks… 50% of my income is doable if we live off topramen & never miss work.
4. The house is too small for us, so we could potentially get one next year. Even a short sale house.
Cons about NOT getting the house:
1. Finding a place to rent with my dog that’s under $1000/mo
2. What will we do with all our stuff?? We have too much as is… maybe yard sale borrowing someone’s yard?!
3. We love the house, its in the best condition I’ve seen any house in my price range
Seems more pros about NOT getting the house now…