Home Buying in Flower Mound>Question Details

Juju, Home Buyer in Flower Mound, TX

We are in the process of buying a house in the Steeplechase of Bridlewood. The house appraised for $40,000 less than our offer. Now What?

Asked by Juju, Flower Mound, TX Thu Nov 17, 2011

Appraiser was out of Prosper and our agent doesn't feel that he knew the area. The sellers agent did not meet the appraiser but "left him the info" which he did not take with him. There were multiple offers on this home after it was listed 2 days earlier. We are moving from out of state and have already contacted schools so I don't really want to walk away but I don't want to have a home that is in a declining market if the appraisal is accurate.

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Like Justin mentioned you can ask for an appraisal review but that is highly unlikely, so as the buyer you can either pay the difference out of pocket or renegotiate with the seller. Since most buyers are not willing to pay more than the appraised value, it would most likely be in the best interest of the seller to negotiate a deal that works for all parties. This has been and will continue to be a problem until we have an increase in the volume of homes sold and appraiser gain confidence in the market again without fear of regulators. Best!
1 vote Thank Flag Link Thu Nov 17, 2011
I have heard this come up a lot in the last year, then it happened on a few of my contracts. I had one near Grapevine Lake that came in 40K lower than the asking price. (Appraiser would not review and revise) I knew that the property was a little on the high side but my clients really wanted it. Thier lender used an appraiser that did not know the area and there were no comps in the area like it so it needed a good appraiser. I suggested to my buyer to change lenders to one I knew and trusted, they did immediately and it only came in about 8K lower and both parites split the difference, buyer came up with 4K more and seller came down 4K. We closed the deal. I have done a few of these since. Takes a little more work, but totally worth it for my buyers and the seller won too! The sellers agent really appreciated the extra effort.
I don;t give up easy....:)
0 votes Thank Flag Link Mon Mar 25, 2013
"MEETING YOUR NEEDS AND EXCEEDING YOUR DREAMS!"

We need to talk , please contact me when you get this.

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Joseph Fernandez
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0 votes Thank Flag Link Mon Dec 3, 2012
Market decline in Flower Mound not likely. Have a revision.
Good Luck!
0 votes Thank Flag Link Thu Jan 12, 2012
Hi. As a licensed mortgage broker, my advice would be to have your agent show you the comps he/she feels best support the value. Have your loan officer review them to see if they really do support the value, ie, location, size, date of sale, etc. A good loan officer should be able to do that. If you are going conventional, your lender can dispute the appraisal through the Appraisal Management Company they utilized. The law does not allow us to contact the appraiser directly anymore. We have had some success working appeals under the new system. If that doesn't work, and you have confidence in the value, you could move to another lender. They would order another appraisal, which you will pay for. It might work, but we lenders don't get to chose a good appraiser anymore. If you are going FHA, that appraisal sticks to the house, so your only option again would be the appeal process, if there are good comps. The local agents are saying that they don't have a declining market. But was the house priced right to begin with? With multiple offers so soon after the listing, it sounds like it was a good price. For the appraisals though, it all goes back to the comps.
Good luck!
0 votes Thank Flag Link Thu Nov 24, 2011
I don't think prices in Flower Mound are declining. This surprises me.
Do you think the comps they used were appropriate or way off?

At this point you can:
1. Ask for appraisal review from you lender.
2. Ask the seller for price reduction.
3. Pay the difference in cash.
4. Meet the seller somewhere in the middle.
Remember if you are using FHA financing that appraisal stays with the house for 6months.

Sounds like you were in the right offer/price range though.

Good luck.
0 votes Thank Flag Link Thu Nov 17, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Did your buyers agent comp the home PRIOR to submitting your sales offer.

Many listing agents ACROSS the country list a home based on what the property owner tells them THAN true value of home . If I can't meet the property owners requirement to sell a home I DECLINE THE LISTING

As a professional Realtor when I represent a buyer I NEVER tender a sales offer UNLESS I know comp value which is almost 100% matches the appraised value.

Issues come up with some inexperience agents who not completed the due dlligence to sell a property.

IT does not matter where the appraiser from ? All Appraiser including Realtors across the country JUST DON'T work their neighborhood IF THEY did they strave to death... so whoever stated to need to understand the real estate market .

Home can't sell IF BELOW the appraised value.

Either resolve the issues search for another home . Sorry to read you having these problems

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Thu Nov 17, 2011
The market isn't declining in Flower Mound like that. Not at all. But there have been a number of distress sales in recent months, so that may have impacted his numbers - however - if you don't want to make up the difference in cash, then have your agent contact the seller's agent and show the competing offers to the appraiser. Also, you do have the right to request a second opinion - and this time not a drive-by (which this very well could have been, if he left the office at all). Bridlewood is a great community and while there is always a lot of movement in the area (people transferring in and out) I wouldn't think the appraisal would be that far off, especially in a multiple offer situation. The recent solds have been from $90-$130 per sf, so there is quite a range. There has got to be some wiggle room. Trust me, both your agent and the selling agent want to see this thing get done. Have you spoken to your lender directly? Ask them for help, too. Maybe someone can pull a string or two.
0 votes Thank Flag Link Thu Nov 17, 2011
Have agent ask lender for a appraisor revision
0 votes Thank Flag Link Thu Nov 17, 2011
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