Agent2Agent in Beverly Hills>Question Details

 sdrftughbjn, Real Estate Pro in Beverly Hills, CA

How many deals have you seen over the last year have the purchase price renegotiated after the appraisal comes in?

Asked by sdrftughbjn, Beverly Hills, CA Thu Mar 22, 2012

My partner and I were talking with an escrow officer we frequently use and the general consensus seemed to be that renegotiations happen more frequently when the purchase price is under $1,000,000 and quite rarely when it is over $4,000,000.

What have your experiences been with this?

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4
BEST ANSWER
Hi Victoria,

Of the few that had to be renegotiated this year, I only had one where the seller would not renegotiate the price and all were under $1,000,000.

Best regards,

Elva Wormley
C2 Financial Corporation
(408) 615-8500
0 votes Thank Flag Link Thu Mar 22, 2012
I had 4 which is more than I have ever seen in a year's period of time. Plus just had a deal fall through--the house had appraised for $360,000 two months prior to an offer that came in at $355,000--and when the buyers appraisal came in it was at a jaw dropping $300,000. How does that happen in a two month period in a market that is relatively stable at the moment. The system is broken and until fixed will make it impossible for the housing market to fully rebound.
0 votes Thank Flag Link Sat Mar 24, 2012
Last year we had 3 or 4 that we had to change. Not fun.
0 votes Thank Flag Link Fri Mar 23, 2012
Victoria, part of this is because people that can pay $4m+ understand the value and a few dollars will not make a difference in the big picture vs. buyers south of $1m are in a different financial level, hence to them it is more critical to meet the appraisal value vs the true value of a home.
Web Reference: http://www.endrebarath.com
0 votes Thank Flag Link Thu Mar 22, 2012
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