Lenders generally do not offer any sort of grace amount with appraisals. You will have to come up with the difference or negotiate it.
Heather Paul, Realtor
You might want to recosider your strategy on this offer you want write. Perhaps, getting an agent to represent you might help you more cleaverly pull off this deal for yourself.
Best of luck to you.
"NEAL KNOWS LOS ANGELES AREA REAL ESTATE"
Real Estate and Financing
10940 Wilshire Blvd. Suite 1600,
LA, CA 90024 | Office:
Find out from listing agent whether they have offers or not and what is the motivation of the seller.
1) If there are no offers and seller is highly motivated, present your offer lower than listing price and subject to appraisal value with better terms.
2) If there are offers, present a clean offer at listing price and subject to appraisal value.
Vicky & Kathleen - you both suggest 'other things can be negotiated'. What exactly are you referring to? In this part of town, no sellers help out with closing costs. Anything else?
I also warn that you should not present anything as a FINAL offer because while you may not be negotiable on your price, you may be negotiable on other things... As a prior poster said - your agent will work with you to present your offer in the best light, and should communicate where you have flexibility and where you dont - according to your instructions.
I once had mutliple offers on a property, and communicated that to both agents. One agent, when asked if he wished to make changes to his offer in light of the 2nd offer we had, replied "no. Do your job. Present it as is." My sellers went with the other offer - it was better, plus the other agent was nicer. It was an easy choice. Until after we were ratified and the buyers called me and said their agent spoke out of turn, that they would offer significantly more and really wanted the house. UGH! Nothing I could do at that point. SIX MONTHS LATER those buyers have not found another home that suits their needs like the one I had listed..... they wish they'd presented their best offer first.
Anyway....I am curious about the appraisal comment... I wonder if this is a real appaisal or an opinion of value or what...but appraisals are influenced by individuals and their opinions and once a contract is in place, an appraiser is supposed to find comps to support the contract price.... so with such a small variable, I think it's entirely possible the banks appraisal will support the contract. Even so, know that the banks appraisal is pretty much what sticks and your loan will be a percentage of the appraised value - anything above that is your responsibility to make up - or, of course, you could (for example) decide to pay PMI or look at an alternate loan program - your lender is who is responsible for helping you to review options.
I do agree with negotiations if inspections shows problems or when appraisal comes lower
Yes, you can bid as a FINAL OFFER based on price, however, there are additional terms and costs that will be negotiated like the escrow, title and termite company, title insurance, escrow costs, termite, natural hazard disclosure report, home warranty, city and county transfer taxes, and more. Even if you offer your FINAL price, there most likely will be a counter offer and negotiations.
Right now in this market, inventory is very low and if a property is priced appropriately, it will sell within the first few weeks, will have multiple offers and will sell over the asking price. If the property is overpriced, it will sit on the market for a longer period of time.
The seller will not only look at the sales price, they will look at their bottom NET and for the strongest buyers. So when making an offer, consider making every potential cost, price and term your best.
All the best,
Kat Becker, Realtor
Estates, Residential, Commercial
Prudential California Realty