(Closed) Appraisal came in low – We could lose the house

posted 4 years ago in Home
Post # 3
Member
44 posts
Newbee

Could you possibly look into a second appraisal? 

This just happened to my good friend. They had a second appraisal done and it was closer to the original offer. With some creative financing they were able to close the deal. 

Post # 5
Member
44 posts
Newbee

@ColoradoG I am sorry that’s not an option! Buying a house is soo stressful! I’ll keep my fingers crossed that the seller will lower the price for you guys! 

Post # 6
Member
10368 posts
Sugar Beekeeper
  • Wedding: September 2010

It’s awful. About 30% of home sales fall through because of low appraisals right now – the banks are very strict about it after the housing bust. We were definitely holding our breath! If this house doesn’t work out – another will, I promise!

Post # 7
Member
10368 posts
Sugar Beekeeper
  • Wedding: September 2010

What is the asking price, if I may ask? $10k on a $450k house isn’t that much. $10k on a $200k house is a much bigger chunk. That may help determine who is willing to have wiggle room – the bank, or the people who aren’t surprised they priced their home too high.

Post # 8
Member
5773 posts
Bee Keeper
  • Wedding: May 2011

Our appraisal came in 14k below the price we agreed upon. Sellers ended up coming down 9k.

The seller is going to have this appraisal issue even if your offer falls through so they may be motivated to work with you.

Post # 9
Member
3462 posts
Sugar bee
  • Wedding: May 2012

@LGenz:  Not necessarily – another buyer might be able to pay the extra costs themselves.

OP, if this falls through, perhaps the silver lining is that you are not buying an overpriced house for the value?

Post # 10
Member
5222 posts
Bee Keeper

We had a contract fall through a few months ago due to this very issue so I feel your pain. HOWEVER, we found an even better, more awesome house shortly after and are currently closing on it. Had we kept with that first house, we would have made a very bad investment and in hindsight, I am glad we walked. It’ll work out, there is something out there for you if this isn’t the one!

Post # 11
Member
1146 posts
Bumble bee
  • Wedding: December 2011

Stay strong the sellers might be just as motivated as you are.

Post # 13
Member
13101 posts
Honey Beekeeper
  • Wedding: July 2010

Do the sellers really think that the house is worth over $20K more than they bought it for last year?  Maybe they’ll be motivated to sell and will lower the price.  Other potential buyers are going to run into the same issue.

Post # 15
Member
3723 posts
Sugar bee
  • Wedding: August 2013

I didn’t even know it was possible to alter the selling price (especially by so much) after an accepted offer. So are you guys not planning on putting any down payment down on the house? Also, unless there were multiple offers on the house coming in on the same day, I can’t imagine why your agent would recommend that you offer above the asking price, especially 5k above. That seems ridiculous.

Post # 16
Member
9145 posts
Buzzing Beekeeper
  • Wedding: November 2013 - St. Augustine Beach, FL

It sounds like they overvalued the house.  If the rest of the houses on the block are in the $190s then they shouldn’t have spent any money upgrading the house until the prices went up.  They made a poor investment and it’s up to them to eat the cost.  Unfortunately that may mean that you won’t get this house.  But it is far better to lose a house you would immediately be under water on.  Hopefully, they are motivated and have some sense and let the house go for less than they expected.

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