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Erica Texada, Broker Associate, CDPE , SFR
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Susie Kay, RealtorÂ®
GRI, CHMS, SFR
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
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SO WHAT TO DO: My recommendation is to have your agent pull comps him/herself to challenge the low appraisal. Often lenders order appraisals and the appraiser selected isn't familiar with the local market. Happens most often with brandname lenders/big banks.. not being familiar with a local market can cause an appraiser to be 100% black/white and not take certain factors into account that could sway appraisal value upwards: in good example, if the property received multiple offers, and offers are perhaps higher than your (back-up offers in hand). This shows the appraiser what the market is ready/willing to pay for the property. This is the case is hot markets such as Dallas.
When an appraisal comes in low, the lender won't make the loan unless the seller comes down in price, the buyer comes up with the differential or the seller/buyer meet in the middle re price.. Without your financing which is in the contract, you automatically get your earnest money back. The only time you risk losing it is when your lender approves the mortgage and you terminate the contract...or in cases where there are option periods, when past the option period to terminate..
As for coming back with a $142K offer knowing appraisal, you say Fannie Mae rejected offer.. the home is ON the market regardless of where you are in the contract process. Something isn't right with the overall understanding of the game in play. How many days has this home been on the market? As for getting the home for what it appraised for, that is purely dependent on who owns it. A seller could refuse to sell FHA / VA and look only for Conventional financing or cash offers. Appraisals still rule the process when financing is required. A cash buyer could offer $142K, $155K even offer cash over the list price and be the stronger suit to buy the property.
Signing a termination letter is the correct procedure for ending your interest in the property all together, and without financing, your earnest money will be returned to you.
Wish you all the very best
RoseMarie LaCoursiere, REALTOR
2425 West Loop South, Ste. 200
Houston, Texas 77027
mailto:Nadine@RealtyIcons.com http://www.RealtyIcons.com http://www.RetireinHoustonTx.com
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