Home Buying in 34103>Question Details

Houli, Home Buyer in 34103

The condo we are buying appraised at $10,000 below the selling price in florida, can I offer 10,000 les w/o losing my earnest $

Asked by Houli, 34103 Fri Mar 11, 2011

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You'll either have to get sellers to drop their price, or you'll have to come up with the difference. Your contract should have a contingency clause that says the house needs to appraise at the agreed upon price. Talk to your agent!
1 vote Thank Flag Link Fri Mar 11, 2011
Hi Houli

Of course you can provided you built in an Appraisal Contingency or
A loan contingency associated with Appraisal. Did you or your lawyer draft
Up a contract or did you buy direct from Seller or Builder with their contract?

If you were say All Cash offer with no contingency, then the seller
Accepted your contract indie to the fact that you were going to close
Without issues.

Good luck.
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Sat Jan 19, 2013
Did your Realtor write in an Appraisal Contingency to your Agreement? Also, a Loan Contingency might be useful as well. Your Realtor is the one to talk to as they know the details and we do not. http://www.naplesrealestateguys.com/
0 votes Thank Flag Link Sat Jan 19, 2013
Off course you can. However, consult with your real estate professional who will know the provisions of your purchase agreement.

What is missing from your question and this conversation is the price you offered for purchase. It is not uncommon for appraisers to undervalue real estate because of the constraints placed on them by the bank ordering and paying for the appraisal. The appraiser knows what the bank is expecting. In the words of the appraiser, "If their report gets 'dinged' they may not receive another order for months." That's real pressure to conform. This, added to the other restraints such as time frame for comparables, distance of comparable and value factor per month for laspe time calculations.

We have a growing situation that will fall into this trap. A waterfront condo community is engaged in a law suit regarding add on fees from a recent roof replacement in the community. This lawsuit has stopped all sales dead. If this is resolved next month (not likely) the last recorded sale will have been over 4 months ago. This will sink the calculated values in this community for a long time simply due to the lack of recent sales and the use of the reduction factor imposed on the appraiser.

In many cases the true value of a property and the appraisal are truly disconnected. But the rules are the rules. Could just as reliably recorded the Zestimate (geesh). In the instance of a downtown Dunedin Townhome, a buyer was willing to bring a gigantic pile of cash to acquire the home. The value was obvious, the real estate, even in this community of identical homes, rarely on the market.

Yes, you can lower your price, you can do what ever you want. You are more likely to get away with this strategy buying a condo than any other type of real estate in FL. Make sure you review your situation with your professional to ensure your dollars are protected.

Best of success to you.
Web Reference: http://www.MyDunedin.com
0 votes Thank Flag Link Sat Feb 18, 2012
Hello Naples Home Buyer,

You could but of course the seller would have to agree. If you are getting a mortgage for a set amount and this puts you over then you either make the additional investment from your funds or ask the sellers if they would accept a lower offer. In any event since the contract is based on your getting the mortgage and if the lender will not increase the amount of the loan you should be OK. Of course you are working with a Real estate attorney!
Good Luck to you!
0 votes Thank Flag Link Sun Mar 20, 2011
Much will depend on your contract, therefore ask your agent the question--are the sellers willing to lower the price....
0 votes Thank Flag Link Fri Mar 11, 2011
Hopefully, your P&S has an appraisal contingency. If so, then leverage that to get the seller to lower the price, or invoke your contingency to exit that deal.
0 votes Thank Flag Link Fri Mar 11, 2011
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