Home Buying in Philadelphia>Question Details

golemaw, Home Buyer in Philadelphia, PA

Can I offer on a different house because of a low appraisal?

Asked by golemaw, Philadelphia, PA Thu Sep 27, 2012

I am currently in a contract with a bank owned house(House A). The appraisal came back very low (15k difference). We have sent this back to the bank to see if they are willing to lower the price (2 weeks still nothing). Now, another house (House B) (bank owned also) has come into the market. House A is still going through title transfer issues and its been 2 months. House B is already in the bank's name.

Is there any legal issues with offering on House B and declining House A if the House B offer is accepted? Basically, wait until the offer is accepted before canceling the contract. We really don't want to lose our EMD.

We do have a appraisal contingency.

Thanks!

Help the community by answering this question:

Answers

9
Christina Lopaz’s answer
If your heart is set on House A I'd say wait. I say this because if you make and offer on House B and they accept and then house and then you get a response from House A you might find your self in hot water. Either wait or exerciser your contingency with House A. I also agree with Keith & Kinsey Schulz and Ron Thomas, you should be consulting your agent, thats what they're there for.
1 vote Thank Flag Link Fri Sep 28, 2012
agreed!
Flag Fri Sep 28, 2012
Why isn't your Agent/Realtor guiding you through this process?

You can certainly consider Deal A dead if they have not accepted your counter. Just make sure you keep an accurate paper trail of offer and counter offer refusals, etc..

You can let them think you are still interested and work toward approval but you're not locked in provided your agent has protected your EMD with the proper short sale addendum giving you the option to terminate if your offer is not accepted and approved by Bank by a certain date. If that was executed properly, you can terminate at anytime up to that date, provided you still haven't received approval.

You can put an offer on Deal B, but again, you must protect yourself with some type of contingency to allow you to opt out should Deal A come back and approve the counter at lower appraised value. You can use a mortgage contingency clause, home inspection contingency, due dilligence clause, etc..

Otherwise, if Deal B comes through first, you may have to close on B and let Deal A go and get your EMD refunded. It's all about choices!

Please demand that your Agent do his/her job and represent you properly. Good Luck.

All the best,
Larry Lichtman, CNE
REALTOR, Property Manager
Your Real Estate Resource For Life
Cell/Text: (267) 254-7994
LarrySellsRealEstate@gmail.com

DJCRE, Inc.
Real Estate Sales, Management & Insurance
1611 Snyder Avenue
Philadelphia, PA 19145
Office: (215) 271-7070
2 votes Thank Flag Link Mon Oct 1, 2012
None of us have seen your contract, but if you have an appraisal contingency and nothing from the bank that says they have accepted your amendment, you should be able to submit a termination. Has your Realtor not advised you on this matter? He/she is the one most familiar with your status, or his/her broker if you are uncomfortable with some aspect of the advice you have received.

If you want rock solid answers, your best place for those is a consultation with a real estate attorney who is well versed in foreclosure transactions. You might ask a title company for a recommendation, or if you have a title company already assigned to the transaction call them.
1 vote Thank Flag Link Thu Sep 27, 2012
Why are you asking us this;
You have a Realtor representing you; aren't you listening to them.
You have already made up your mind; you're just asking for permission.
You realize that there are ethical issues here,
You do, as you will.
1 vote Thank Flag Link Thu Sep 27, 2012
In my opinion, this could be very dangerous for you. You could end up with 2 homes under contract at the same time. If the house A situation gets straightened out at the same time as house B gets an accepted offer, then you would be obligated to both contracts. I would suggest terminating house A prior to perusing house B. If you are working with a real estate agent, they should be able to advise you knowing more of the specifics of your contract.
Web Reference: http://keithandkinsey.com
1 vote Thank Flag Link Thu Sep 27, 2012
Remember a counteroffer negates the previous offer. Silence to the counter means no deal. So correct me if I am wrong, deal A is dead if want it to be. So you can go B but like christina said you may lock into B. So do you want that?
0 votes Thank Flag Link Fri Sep 28, 2012
If you have an appraisal contingency then you are okay with terminating sale A and moving forward on the next property. Your real estate agent should know this. Look through your contract.
0 votes Thank Flag Link Thu Sep 27, 2012
It would seem to me, if you have a mortgage contingiency, then you have a way out of house A. I would however strongly suggest that you consult with an attorney
0 votes Thank Flag Link Thu Sep 27, 2012
are there any legal issues you ask. there are always legal issues. that's why courtrooms are backlogged and jails are filled. appraisal contingency? exercise it. resubmit an offer on house A equal to the appraisal
or if all else fails hire an attorney ans provide the contract for review . cause free advice from the internet is worth what you payed for it. nothing.
0 votes Thank Flag Link Thu Sep 27, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer