Keep this in mind on the lending side of things...

For example, lets say your offer is accepted at 130k. Now, you start the lending process and the appraiser is order to go out and appraise the home. The value that comes back on the appraisal is 128k. The lender will only finance the lessor of the purchase price or the appraised value. In the years I've been helping first time home buyers with their financing, I've never seen a seller NOT understand that the purchase price has to come down to match the appraisal. Basically, you are paying more than what the appraiser believes it's worth. Whether the seller may think it's worth something else, it's the lender that determines the homes value based on a current appraisal.

Another option is to pay the difference out of your own pocket, but is that something you are willing to do?

Let me know if I can be of anymore assistance on the financing part of things.

Mon Jul 7 2008, 23:30

Julia,
Assessed values throughout the Milwaukee area (and beyond) have very little connection to what a property is worth to a Buyer. It is merely a way for the municipality to determine what the property is worth for taxing purposes.

I can only suggest that you have your Realtor provide you with comparable recent SOLD properties within the area of this home- Sold within the last 3-4 months. If there have been no recent solds, see what is pending. I know that there are quite a few homes that have no basements in the area, you can usually buy a basementless home for a little less than one with a basement- but you will get a little less when you sell also.
If the property meets your needs, and you are comfortable with it- by all means it is better than renting.

Depending on how motivated the Seller is (your agent may be able to find out a little more about that by talking with the listing agent) you may be able to buy it for a less- all depends on how many other people also see it as a good value. Again - your Realtor is your best source of information, hopefully you are working with them as a Buyer's Agent.
All the Best to you!

Sat May 10 2008, 08:42