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.

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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
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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
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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
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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
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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
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