Home Buying in Benicia>Question Details

Kellyclozano, Home Buyer in Benicia, CA

The appraisal came in at 8 thousand below our offer. How likely is it that the bank will accept the price set by the appraiser?

Asked by Kellyclozano, Benicia, CA Sat Jul 9, 2011

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Hopefully your offer was subject to the appraisal. Most are when getting a loan. I always put than in even if there is no loan contingency. Now, you can have your Realtor do an addendum to match the appraisal price. Everyone sign it & the sellers agent submit it to the sellers bank with a copy of the appraisal. I've done this very thing successfully. Once they see that, they are usually pretty reasonable. Although it does depend on the bank & all other considerations. Hope this helps. Good luck to you
0 votes Thank Flag Link Sun Jul 10, 2011
I should've mentioned this is a short sale so the seller seems to have little to do with it. I ordered and paid for the appraisal, so that's why/how I know what it came in at. @rick thank you, I appreciate your answer and I'll keep my fingers crossed for an approval. I'd love to make up the difference but with already paying the closing costs it would be tough.
0 votes Thank Flag Link Sat Jul 9, 2011
The bank wants to ensure that the loan is covered for the market value. If they will only lend to the appraised amount, are you willing to pay the difference between the appraised value and your offer? You may have to go back to the negotiation table with the Seller. Talk to your Real estate agent who can best advise you at this point.
0 votes Thank Flag Link Sat Jul 9, 2011
Normally, the appraisal has to cover the amount of the LOAN.
How do you know the amount of the Appraisal; normally they will only tell the Bank,
and you have to request (and pay for) a copy of the Appraisal.
If you talked to the Bank, why don't you know whether they will accept the Appraisal?
Normally, you can request another Appraisal, as long as you pay for it.
And if you know all of this, why are you not asking your Buyer's Agent?

Good luck and may God bless
0 votes Thank Flag Link Sat Jul 9, 2011
To subjective to be able to answer this question as yes or no. The decision makers might accept if its within 10%+- of their values. The appriasal is much better than a BPO which was most likely the method the bank used to determine value. But the final decision is the bank representatives. Speculating, I'd give it 80% acceptable and 20% not acceptable by the bank. Odds should be in favor of acceptance.
0 votes Thank Flag Link Sat Jul 9, 2011
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