I agree with Keith. Does the appraisal accurately reflect the home's value?

If it doesn't--if it's worth more and the first appraisal is flawed--then go ahead an purchase it at whatever a new appraisal/real value comes in at. (Or lower, if you can negotiate that. Say a second appraisal comes in at $155,000. Try to hold the seller to $151,000. Your line to the seller: "Two appraisals--let's split the difference.")

If the first appraisal is accurate, don't buy the house. Period. It doesn't matter if it's a nice house. It's an overpriced house. And better to lose the $900 on costs incurred to date than to sink $4,000 more into an overvalued property.

Hope that helps.

WE are seeing some pretty serious problems with appraisals since the new rules took effect on May 1st.
We are seeing below market appraisals, appealing them, and getting nowhere.


Are you SURE that the property is worth the sale price? Did your Realtor show you comps that support the price?

If the property is worth it, then try to make it work.

I don't believe your lender will allow you purchase the home EVEN if you "threw in the extra cash" Where is your buyers agent? Rule of thumb never purchase a home over valued.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
Lynn911

Home buyer,
You have to ask yourself is this the house I will live in for at least five years( it will take a leat that long to see a increase in value for any property in this market, maybe longer) do not consider any work or repairs as an increase in value it is not going to change because of it it will only make it sell faster at the correct price(market Price) The time is correct now to purchase if you like the home and the area and you can see yourself there for some time it would be a good purchase and I would than put up the extra money since it is not much in comparsion. The appraisal no a days is very realistic and the current value is 147 if you get it for 151 and you will be negative. But for how long? what are the price of some homes in the area? how long did you spend looking? If the appraisal can in short you should have an escape clause to get you out of contract without losing?
All in All is it right for you. Can you wait and do repairs later how will you feel after closing if you believe happy than it is for you if you think you will be upset or feel taken get out.
Nunzio