If you need a second opinion, give me a call. I would love to help you sort through all this. 951-210-2101.
I work for a direct lender headquartered in Irvine, California. Feel free to look me up at the following websites.
Thank you for looking. I look forward to hearing from you.
Eddie W. de Leon
You must be very frustrated with this situation. I am sorry you are having to go through this. However, the market is rapidly changing. You got some very good advice on here. The question you posed is what is the value of the home. Value is usually determined by what a willing Seller and a willing Buyer agree on a price. Yet, in real estate there are external factors that must be dealt with.
The options are:
- Communicate with appraiser - get new comparables to substantiate the price. Make a good case for value. There is a chance you may get the appraisal changed.
- Seller reduces price.
- Buyer pays the difference.
- Seller and Buyer would need to both come together.
Scott Newton - Broker
The contract price of $235,000 is not an appraisal supported price.
The purchase price is $235K - as the contract stands. Now, the buyer will only get the $206K financed. So, they would need to pay the difference of $29K in cash. However, they stated in the addendum they would only pay $3,500, not $29K. So, that said, the seller can lower the price to $209,500 or the buyer can cancel contract, or the seller and buyer can meet somewhere in the middle (but neither of them has to). The FHA appraisal of $206K will stay with the property for 6 months so if the current contract is cancelled and the seller accepts another offer, if it's FHA the appraised value will still be $206K so the seller would probably not want to accept another FHA offer if they want more than the $209,500 the current buyer is offering. An addendum will be needed to change the purchase price to the $209,500.