Post # 1
I am so stressed out and frustrated I cannot believe it. DH and I are buying our first house, and the appraisal came back last night a whopping 35K short on the appraisal. (Our purchase price is 269K) We are SOOO upset and confused about what to do. The comps they used were pretty bad, but it’s hard to know if we are overpaying. The realtor and the attorney think I should get another appraisal, the mortgage broker says we should back out. The realtor said the appraiser was one of the biggest jerks she’s ever worked with. Yet, he’s just an independant appraiser. I just got off the phone with another broker, who also thought the appraisal was ridiculous. I don’t know who’s telling me the truth!! The seller says she cannot lower her price any more.
On top of that, DH’s grandma died yesterday, so we will have to make the long drive from NYC to Michigan this weekend because the flights were just too expensive. I feel so overwhelmed i could scream!
Has anyone had this happen with their appraisal? Did you walk away or get another appraisal?
Post # 3
Our appraisal was $15K lower than the agreed purchase price. Since we were doing an FHA loan it wouldnt get approved like that.
So we got a 2nd appraisal, which also came back low and also forced the seller to lower their price. It was an incredibly stressful situation. Good luck!
Post # 4
I guess you’ll have to weigh a few things – is the market really hot where you are trying to buy? If it was hard to get an accepted offer (like it is here) i’d get another appraisal and see if you can get that number up. If there are plenty of houses for sale and it’s not an aggressive seller’s market, i’d walk and find a new house. No sense paying another $400 for an appraisal that might still not give you the house.
Post # 5
This happened to us. We had an FHA loan so you have to get two appraisals. Our first one came in under with Mortgage Company A. We could afford to pay cash for the difference so it was recommended to us to start working with Mortgage Company B who used a different pool of appraisers. Both came in where we needed to be, although it delayed our closing by a couple weeks. I don’t know if that’s helpful to your situation but I thought I would share. I know how frustrating it can be. Our first appraiser was an idiot who wasn’t familiar with our area. Good luck!
Post # 6
Ours came in about $5k too low, but we ended up splitting the difference with the sellers. They lowered the purchase price and then we kicked in a little extra.
If it had been that low, we probably would have gotten a second appraisal.
Post # 7
I would get a 2nd appraisal if you can afford it. If that one comes in low, you know you are overpaying, and may be able to get a lower price on the house.
Post # 8
Ours came back at $19K too low and we explained to the seller that the appraisal price is all we had to offer. She rejected it at first then called us a month later and accepted it! I’d offer her the appraisal price. If she REALLY wants to sell it, she’ll accept. If not, keep looking!
Post # 9
@MrsTVLover: Is this a foreclosure or short sale? If so, I’d rewrite the offer for the appraised price. I did that with mine ($70k under offer) and their bank took a while to get back to me but ultimately agreed. Even if they are not underwater and just don’t want to lose their “potential profit” once a house has appraised for a value the realtor has has moral obligation to disclose that to any future sellers so you really have them in a place where you can make out from this!
Post # 10
@lazybee123: No, it’s a regular sale.
I think we are going to get a second appraisal and see what it says. Buying a house is so much more stress than I ever thought it would be!
Post # 11
We made an offer on a house based on what our agent said the house is likely to appraise at (which was significantly below asking price). The seller countered, but it was still too high. We came up a little, but the seller wouldn’t budge. So we walked away.
Weeks later we found an even better home, and it appraised at value. Everything happens for a reason.
Post # 12
When we got our apprasial back, it was only a little bit more than what we were buying the house for. However, it was half of what the county appraised the property at. The houses that he compared it to were no where similar to our house. We have land and a decent size house. All the houses that he looked at were smaller and did not have any land with it.
I think it is all about the appraiser. They do not seem to have the same ideas on cost. I would either see if you can counter the asking price and see if they will come down in price. If they won’t, then I would walk away.
Post # 13
@onyx81: i agree.
@MrsTVLover: the last thing you want to do is to overpay for a house. good luck and keep us updated. also, sorry for your loss.