You offered $240 and it was accepted? Then you have 10 K in repairs, which if credited to you at closing, would effectively lower your purchase price to $230K.

Now the appraisal comes back at $235K, so you offer $225K (which seems like the appraised value MINUS the 10K in repair work) and still want 10 K in credits?? I think if your offer of $225K is accepted you have already received your 10K to do the repairs yourself.

Just my opinion, but often I am surprised at how these things work out. If seller is motivated, you can surely ask for 10 K in credits, if your $225k offer is accepted, and they may just say okay , but I tend to think they (and their attorney) would have the same take on the situation as I described above.

Let us know what happens

Searching,

What ended up happening ? Did you offer lower then the 225k?

Just an FYI, the appraisal world is in an upheaval in NJ and IMO just awful.
See this article from Dan Levy at Bloomberg.com:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aWyC…

So, I guess it is good for buyers as it gives them the option of being able to shake down sellers at crunch time. Tough stuff.

P.S. Typical = repairs above and beyond the norm; rarely do deals result in reduction of offer price.

Searching09,

In my experience, it is typical to see an offer of $240k be reduced post home inspection in consideration of home inspection issues . . . these issues are handled by the attorney.

The appraiseral issue is a different matter and again best addressed by the attorney representing you as a buyer.

In my view, if the appaisal comes in at $235, one might deduct the cost of HI issues, plus additional consideration for market conditions . . . . therefore, I might offer less than the appraisal minus HI issues. . . . Just my thoughts.

Love and Peace,
Francesca, Realtor, ePro
NJAR Circle of Excellence 2006, 2007,
Million Dollar Sales & Marketed 2006- 08
Francesca@PatrizioRE.com

Hi Searching09, It sounds to me as though you've got your $10,000 if you are successful in renegotiating that price. Be fair minded and you'll have a better chance of making it to the closing table.

Good luck,
Jeannie Feenick
"Unwavering Commitment to Service"
Search the MLS at http://www.feenick.com

I assume the loan approval was contingent on the appraisal. since it didn't appraise for the purchase price, you and your agent should be able to use this as leverage to get the sales price lowed to what works for you and the seller.

Searching,

You made an offer of 240k that was accepted I assume.. So, you made the $240 offer with the knowledge of 10k in repairs, The apprasial is done comes in low and now reduced your offer to 225k and still want and additional 10k in repairs?

Clarify a little bit...

You say that you've made an offer, but not that it has been accepted and is an executed contract. In which case, it might still possible to negotiate at least some of the repair issues with the seller. Also, depending on how much you are qualified to borrow, you might be able to buy get the house for a little less than you're qualified for then you'll be able to invest the downpayment savings in the repairs.

better check with your lender as some will not allow credits. You may consider a $10K escrow held for repairs but again this may not be allowed by lender. Speak to both lender and your attorney.