Bank appraisal really low!!!

fran1523July 12, 2012

The house sale that I thought was going so smoothly has had its first hitch. The bank appraiser came back with $297 which is $8K less than the agreed on selling price. I don't have much choice but to sign a new purchase and sale at the reduced price because I've got one foot out the door already and have already signed a lease. So while the new buyer is probably celebrating, I will shed a few tears in my wine.

Thank you for reporting this comment. Undo
littleprincess

Did you offer any closing costs in the original contract? If so, I'd make sure to wipe that out first. So your new contract would be for the appraisal amount with $8K less closing costs than you offered in the previous.

    Bookmark   July 12, 2012 at 9:43AM
Thank you for reporting this comment. Undo
terriks

I know that you are disappointed, but I wouldn't call less than 3% off the selling price to be really low. Count your lucky stars that it wasn't any lower!

    Bookmark   July 12, 2012 at 1:15PM
Thank you for reporting this comment. Undo
linda117117

Don't give up so fast. Have your agent see if he/she can negotiate something better. I just had a buyer split the difference with my seller.

    Bookmark   July 12, 2012 at 5:15PM
Thank you for reporting this comment. Undo
linda117117

Don't give up so fast. Have your agent see if he/she can negotiate something better. I just had a buyer split the difference with my seller.

    Bookmark   July 12, 2012 at 5:16PM
Thank you for reporting this comment. Undo
c9pilot

I've experienced two low appraisals and didn't have any luck arguing with the bank even though I had very valid issues with the comps. (i.e. "Can you really compare an end-unit townhouse on the water with a boat slip with a 2nd-floor condo that isn't even in a waterfront community?", or "No credit given for a new $45K dock/boat lift/new seawall compared to no dock/pilings/lift with a 40-yr-old seawall?" Note: Seawall life expectancy is 50 years but I don't think this appraiser knows that. This would be like buying a house with a 20-year-old roof that's supposed to last 25 years, except you can't insure a seawall.)

Anyway, on the townhouse, we ended up $15K low. (Appraiser took off $10K, underwriter took off another $5K - seriously?) I didn't want to drop the sales price because that would further lower values in the neighborhood and friends were selling theirs, too. So we kept the sales price, but I gave $5K towards closing costs and the buyer (my tenant) came up with the other $10K somewhere.

Good luck!

    Bookmark   July 13, 2012 at 10:19AM
Sign Up to comment
More Discussions
Would you buy a home near fire station??
We're considering an offer on a single-family home...
1232
Off market for 6 days, why? ncrealestateguy?
Hello, long time lurker, first time poster. I hope...
heather483
What qualifies an offer as a "low ball"?
Hello! Im on the house hunting side of things now! I...
karin_2015
Questions for buying a home with a septic system
I just came across an interesting article about issues...
cbrooks42
Emotional rollercoaster of home selling
Lately, this process of having my condo up for sale...
Acco
Sponsored Products
VYCO Translucent Drawing Board Cover Multicolor - VBC55-4
$36.99 | Hayneedle
Contemporary Indoor/Outdoor LR Resources Rugs Tribeca Fawn Rectangle 8 ft. x 10
Home Depot
WAC Modern Forms | Vetri WS-3919 Bath Light
$359.00 | YLighting
Tech FreeJack Ecran LED Lattice Platinum Mini-Pendant
Euro Style Lighting
IC920RLEDG3 5 Inch LED 900 Lumen IC Remodel Housing
Lightology
SFERRA Tulia Pillow Sham
$219.00 | FRONTGATE
Liberty Furniture Alexandria Sleigh Bed & Dresser & Mirror in Autumn Brown Finis
Beyond Stores
Antonello Italia | Modo Stool
YLiving.com
People viewed this after searching for:
© 2015 Houzz Inc. Houzz® The new way to design your home™