Home Sale Dilemma - Low Appraisal
I've been reading this forum for years, but have never had a huge need to post until now. My husband and I listed our home at the end of January of this year. We had 2 price decreases (at our insistence) and a decent number of showings. We got an offer at the beginning of July for close to asking price plus seller's assist. It wasn't the greatest offer, but given the current climate, we felt any offer was fine so we didn't counter anything back and accepted it. We have land that we want to build a house on. Due to lending requirements, our bank wants us to sell this house before they will lend money to build a house.
The appraisal just came back this week. Sale price was $120,000 with up to 6% seller's assist. The appraisal came in at $110,000. We were already going to have to spend money to get out of this loan and now we are going to have to spend even more due to the balance on our loan being around $118,000. I'm not happy with the comps the appraiser used and was told that there is nothing that can be done about it. It is also a rural housing loan so our house is going to be tied to that appraisal for 6 months now. Our realtor has been working with the buyer's realtor and we have agreed to lower the price to the appraised price without the seller's assist. The problem is that the buyers might not have the money for seller's assist so the realtor said we do have the option to assist them with the shortfall. My husband isn't happy about any of this and is ready to walk from the whole deal.
Part of me wants to just sell it for whatever price, cut our losses and move on. We already have a rental place lined up (verbal agreement, haven't signed any documents yet) that I'm actually sort of looking forward to moving to. Also, I don't really like our neighbor that lives on the one side of us and we have had some verbal arguments in the past (a whole other story); I was really looking forward to getting away from her. My husband wants us to just end this sale and have the realtor take her signs down (our listing contract with her technically expired at the end of July) then possibly list it ourselves or wait until next Spring.
In this real estate environment, I don't see it getting any better and I think we should just take this deal and go. Our "competition" is older people who are moving to an upscale retirement complex that was just built and they can afford to list their houses at bargain prices since they have been paid off. If you made it this far, thanks! I don't really know what my question is, but just looking for some feedback regarding other's thoughts about this situation.