Home Buying in 20169>Question Details

knotez1, Home Buyer in Land O' Lakes, FL

So something smells fishy in the beautiful Sunshine State of Florida.

Asked by knotez1, Land O' Lakes, FL Fri Jul 5, 2013

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I'm reminded of the addage about something taking three times as long and costing twice as much:
You are telling us that they are building a home and don't have the reserves to meet the $8,000 unexpected.
Did they have "extra money for their upgrades"?
I'm sorry; I cannot muster any sympathy.
1 vote Thank Flag Link Fri Jul 5, 2013
I'm confused. (a common condition for me).

In my area, if the property appraises for less money, the buyer doesn't have to come up with more money. (although they could)... what typically happens is the seller has to come DOWN to meet the appraisal.

Sometimes the two can negotiate to a number somewhere in between... but that's strictly my mutual agreement. Yes, the buyer could CHOOSE to come up the $8,000 (because the lender won't give it, based on the appraisal), but I just can't advocate the buyer paying more than appraisal value.
0 votes Thank Flag Link Fri Jul 5, 2013
http://awww.. shucks. now you're making me blush.
Flag Mon Jul 8, 2013
Alan thank you for reassuring me that good, honest agents do exist. Your buyers are lucky to have you ............
Flag Fri Jul 5, 2013
Alan May, Real Estate Pro in Evanston, IL
MVP'08
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When you say homes in this subdivision have "increased in value" do you mean there are actual CLOSED, recent, comparable sales....or simply that the builder has increased his prices?

You need recently closed sales to show market value....not the price the builder may be asking.
I can't imagine the appraiser wouldn't have used recent sales in the subdivision if they were available.

Did your daughter and her husband work with an agent? If so..ask him or her to intervene and see about contesting the appraisal.
Was the subject of an "acceptable appraisal" brought up in their contract? It might have been a good idea to state that the price would be adjusted if the house didn't appraise out, but without that verbiage, it's a little late now.

Believe me, the builder didn't "drop the ball".....if anyone wants this to close - he does - and he had no say in the appraisal!
The appraiser was doing his job...he can't adjust the appraisal to equal the sale price just to be a nice person. It doesn't happen that way.

And, I just have to add this...in my opinion, no one should buy a home - especially a NEW home - without having a comfortable savings/cushion in the bank for unexpected emergencies.

So - if they can't come up with the $8000 - what recourse does the builder have?
Will he reduce the price?
Why was the appraisal done only 2 weeks before closing? Didn't they have to have an approval in place before now?

Good luck - hope it works out well for them!
0 votes Thank Flag Link Fri Jul 5, 2013
My daughter and her husband contracted to have a new home built in Land O Lakes, Florida. All was going along smoothly and they are just two weeks away from closing and the appraiser comes in and provides an appraisal that lists the home at $8000.00 below purchase price. Now two weeks before closing these first time buyers are being told they need to come up with out of pocket an extra $8000.00. Which they don't have a spare $8000.00 just laying around. The comps included aged short sales as well as other questionably comparable units.

Any suggestions for avenues for recourse, sounds to me like builder or appraiser has dropped the ball on this contract. By the way homes in this subdivision have increased in value, not decreased.
0 votes Thank Flag Link Fri Jul 5, 2013
Strange responses to say the least, not one suggestion of explanation. More a chastising for not being wealthier with unlimited funds, I certainly hope that is not the way you see and act on behalf of the buyers you represent. How often do you tell your buyers up front "Hey guys just in case two weeks before closing the agreed selling price exceeds the appraised value, keep $8000.00 pocket change available"?

We were asking for for useless attacks or statements of "I cannot muster any sympathy" or assumptions of "The appraiser was doing his job"..

I would hope as an agent for a buyer you might truly act on their behalf and come up with some functional suggestions to assist with this issue. Your sad superior type attitude provides little for those that put their trust in you.

Momma says: "If you can't say something nice, don't say nothin' at all" or maybe if you can't say something helpful ............
Flag Fri Jul 5, 2013
We are in Land O Lakes, FL ... not VA
Flag Fri Jul 5, 2013
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