Home Buying in Indio>Question Details

Jacktraffic, Home Buyer in Indio, CA

I've made a $180,000 offer on a BofA short sale... the appraisal looks like it'll come in WAY less than offer. Maybe $160K? Will BofA?

Asked by Jacktraffic, Indio, CA Mon Sep 12, 2011

accept $160K? Interesting sidenote: The Riverside County assessor says the prop 8 assessed value (supposedly the current market value) on 1/1/2011 was $165,000. But the current owner bought house 3-4 years ago for, like, $350K. I didn't know this as the time but there's $5,000 of past HOA dues and roughly $7,000 of pool repairs required that I didn't learn about until after I made offer.

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Hopefully you still have your appraisal contingency. If you do, you can try to go the lender and tell them your lender won't loan you on a $180,000 because the appraisal came in at $160,000, $20,000 below the purchase price and if the BPO is $180,000 or lower, you can try to work through the listing agent to submit the appraisal report and let them see for themselves you're lying to them. They will probably ask the listing agent or the seller to resubmit a new addedum reducing the purchase price to $160,000 (to reflect the market priice) and a revised HUD-1 (to show they will net if the revised price) and they will submit them to the investors for their approval. Chances are they will work with you.
0 votes Thank Flag Link Mon Sep 12, 2011
Just because other visitors may benefit from info, let me share a couple of pieces of relevant data (which is sort of obscured in answers below...)

1. In California, while assessed values typically don't relate to appraised values because assessed values get calculated using the proposition 13 formula, in some situations, proposition 8 creates an exception. Proposition 8 says that if the current market value is lower than the prop 13 value, then the current market value on 1/1 is the assessed value. I believe that means that when you a house that sold four years ago for $400,000 and now "assesses" at $200,000, that the county appraiser thinks he 1/1 market value is $200,000. Obviously, that's a good at a particular point in time... but the Riverside County assessors office is staffed full of appraisers, so I understand... so I think equating appraised values with prop 8 assessed values is more reasonable than you might think.
2. In California, the standard purchase contract (at least the ones I've seen) have an appraisal contingency... so California buyers (like me) probably always have that available...

Thanks to everybody for your great answers.
0 votes Thank Flag Link Wed Sep 14, 2011
assessed value has no refelction on what a home is worth , it is for tax prposes. As far as your short sale, hopfully you had a contingincy in there about subject to property appraising, if not if you are getting a mortgage that will be teh key as they will only loan on the appraised value.

At this point you will have to write an addendum asking them to lower the price based on the appraised value, make sure you include a copy for the appraisal and then ask for a credit for the pool, inlcude pictures and at least 2 estimates and include that all hoa fees shall be paid as of closing.

http://www.trulia.com/blog/scott_godzyk/2011/08/the_basic_pr…


Please see my blog with tips on buying a short sale
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Sep 13, 2011
Hi Jack,
I guess the real question is what would you be willing to pay for the property now knowing what you know. Then I would have your agent present that new offer. Either BofA agrees or they don't.
Good luck,
Web Reference: http://ocnorth.com
0 votes Thank Flag Link Tue Sep 13, 2011
You need to discuss your options with your Realtor. Hopefully you're using one as a Buyer's Agent? Are you a cash buyer, or will you be getting a loan? B of A probably wants to see a certain "net" amount based on the appraised value. But if you've already offered $180K, then of course they're going to want that! Your agent should be able to advise you on what you should do.
0 votes Thank Flag Link Mon Sep 12, 2011
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