It is commendable that your agent was able to get seller adjust to appraisal price. I just placed a full price, cash offer on a Fannie Mae property. I have a appraiser clause in my offer. Multiple offers are being reviewed now. I do feel I have offered too high. The FMV in 2012 tax bill was listed 91% lower than the asking price. The "comps" in the area is about 85% less than this house. While the home is more desirable to me than some "comps". I am hoping I can leverage the due diligence period to get a lower price. What are some other strategies to buy the house lower than the agreed the offer price. My agent seems to say we just need to wait for the next step which is whether our offer is accepted then see how things are playing out. In his view, nothing is set in stone. It depends on how things move along....
Thank you for your updates. Your detailed explanation of your experience is great information for anyone who considers buying a Fannie Mae property.
I had an experience with a client buying a HomePath approved Fannie Mae property. Our experience was similar to yours but the market was different in that multiple offers were rare at that time. We made a well considered offer based on comps that supported the offer â€“ which was far below the asking price. We got a counter back that made no sense. We waited a few weeks and watched the price reductions. When the price fell to a reasonable range, we made another offer and got another counter offer that did not make sense. After further negotiations, my client closed on the house at a price that was LESS than her original offer.
She did a HomePath loan but we stuck to our guns on price knowing that the asking price was too high. We did not need an appraiser to tell use that.
There was a possibility that Fannie Mae would back down and they did. There was an alternate possibility of the deal falling apart. Diamond took the risk of that happening and WON.
If you want a Homepath loan give me a call. If you have all documents I need Ill close your deal between 20-30 days. The good thing about a homepath loan is that it would not have mortgage insurance.
Gabino Barrera Jr.
23705 Crenshaw BLVD. Suit 101
Torrance, CA 90505
License by the State of California Department of Corporations under the California Residential Mortgage Act
I am happy to hear you received appraised value for your home. I have worked with Fannie Mae as the Seller on foreclosures. Good Luck with your home.
Susan Penn, PA, SFR, CDPE
EWM RealtorsÂ® | A HomeServices of America Company | An Affiliate of Berkshire Hathaway
2000 Main Street, Suite 103 | Weston, FL 33326
T: 954.306.7337 | C: 954.557.5993 | F: 954.515.0200 | firstname.lastname@example.org | http://www.ewm.com
Thank you for all of your wonderful explanations of your experience in making your purchase.
Congratulations on getting the seller to agree to reduce the price to the appraised value.
Buyers beware of overpriced HomePath approved properties! Do your homework (actually that is your Realtorâ€™s job) so that you do not agree to pay too much for a property just to avoid having an appraisal. Why would you agree to buy a property that is underwater the day escrow closes?
I suspect that the seller will reduce the price to reflect the appraisal value. Good luck.
Homepath is an option but honestly a far less desirable loan program. You give up the appraisal protection and you will pay a higher interest rate. This program is the first accepted by Fannie Mae but it is not a recommended program if you are concerned about not overpaying for your property.
You are not buying a "HOMEPATH" property; you are trying to buy a FANNIE MAE property that has been approved for a HOMEPATH loan.
You should (must) be using a Realtor to buy an REO from Fannie Mae; why are you not talking to your Realtor and trusting them?
Why didn't you have your Realtor do a CMA before making your offer, to determine the Market Value of the property? Or did you just not listen to them?
There are too many inconsistancies here!
Then let me rephrase:
Why aren't you using HomePath financing that does not require an appraisal? People often think using HomePath means you can only put down 3% and that's not true. Regardless of what your down payment is, you can use a HomePath mortgage to avoid the appraisal issue on a HomePath property.
The simple answer is maybe.
The seller has the option or choice to come down to the price, or may request a second appraisal. I see your question as you are buying a homepath property, I did not see anything saying you are getting a home path loan. You should plan on it taking an additional 7-21 days.
Now here is what you need to consider,...
Are you willing to pay for an additional Appraisal with the possibility of the seller not willing to sell at the price? If you are buying with an FHA loan that may be a whole different story.
Talk to your Loan officer.
Harold Sharpe - Broker
So Cal Homes
California Department of Real Estate Broker License # 01312992