Home Buying in Los Angeles>Question Details

Lisalinn, Home Buyer in Los Angeles, CA

Paying more than appraisal in short sale.

Asked by Lisalinn, Los Angeles, CA Sat May 25, 2013

Our appraisal is less than our offer? We bid on a short sale, and after 4 months, the bank accepted our offer, but our banks appraisal is less than our offer. We didn't have an appraisal contingency, and we are wondering if the bank will consider a counter for a lower price? Our down is 30 percent, so no worries about approval of our loan, but we certainly don't think our realtor gave us proper comps.

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You can always go back & show the bank the appraisal & ask for a price reduction.Have your real estate agent also give comparable sold homes in the area .Good luck !
0 votes Thank Flag Link Wed May 29, 2013
This kind of situation happens more than you think. Definitely try the lower counter offer.
0 votes Thank Flag Link Tue May 28, 2013
Have the seller sign your counter offer for a lower price with your appraisal and send it to the short sale lender for approval or decline.

Good luck!
0 votes Thank Flag Link Sun May 26, 2013
I'm sorry to say this, but don't listen to the other answers. I have Always been able to get the short sale lien holder to come down when our appraisal comes in for less than their idea of value. Which fortunately hasn't happened to me too many times, due to my strategy for when the bank sends out their appraiser prior to getting the short sale approved.

But, that time has passed for you. You're at a point where the bank sent out their appraiser & found a value of $x, then they approved you at or near $x, then you got your appraisal for your loan which is lower than what the bank found.

If I were involved in your transaction, I would need to know Exactly when the bank sent out their appraiser. Pull comps for that specific period of time looking at the most "like" properties as possible & not going above or below 30% of the square footage of the subject.

You need to "make your case" for the bank. Turn in the comps from the time the bank sent out their appraiser. Supplement that with the appraisal report copy which you NEED to get from your lender. Have the listing agent submit all of that to the bank, along with a New HUD1 with your appraised value & do the Counter offer.

If the listing agent knows what they're doing with short sales, this could all still work out for you.

You can contact me if you'd like, you don't need to give me the property address, but I would be curious to know how far off the 2 values are? Are you $20K off or $75K off?

Shoot me an email directly, I don't look back on this same Trulia posting for answers after mine.

Emily S. Knell
562-430-3053 c
Realtor Since 1996
Realty ONE Group
Short Sale Listing Agent
100% Success Rate in CA
0 votes Thank Flag Link Sat May 25, 2013
Your Realtor should be the one to guide you on whether to write a counter. That said...in my experience...trying to negotiate with banks is like banging your head against a brick wall. Lenders often want more for a home than it's worth...they are often looking at how much is owed on the home and are trying to recoup their losses.

If you are not comfortable with the deal...walk away...there WILL be other homes.
0 votes Thank Flag Link Sat May 25, 2013
Since it's a short sale and you don't have an appraisal contingency, I don't see any reason or any chance for you to get a lower price due to a lower appraisal. That happens a lot. The no appraisal contingency is very likely how you were able to win the deal in the first place.

If the deal was from 4 months ago, then the comps don't matter. You just have to decide if you still want the house at the current approved price.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Sat May 25, 2013
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