Home Buying in Twin Falls>Question Details

Armymom22, Home Seller in Twin Falls, ID

We hired a local real estate company to help sell our home. We accepted an offer and have a signed contract. Our broker contacted the buyer's

Asked by Armymom22, Twin Falls, ID Tue May 18, 2010

appraiser and he in turn called the buyer's bank and informed them that our broker had called him. Now the buyer's bank won't finance the sale of the house even though they were pre-qualified. Do we need to hire a real estate attorney?

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6
Why not offer the buyer seller financing? This way you could structure your deal to close with enough cash to cover your down-payment (if you intend to buy another home), your portion of the closing costs, and the commissions. Then you could move on, and void the legal fees and indigestion.
1 vote Thank Flag Link Tue May 18, 2010
Armymom22,

I believe your question is based on your broker contacting the appraiser directly. There are new regulations that are in effect to protect the consumer. When the market turned and everyone was looking at who to blame for the escalation of price the appraisers took a lot of blame who then blamed others maybe like your broker who then tried to coerce them into bringing the value in. Do we hire an attorney? And tell them what exactly?
1 vote Thank Flag Link Tue May 18, 2010
If the property did not appraise, you buyer won't be eligible for a loan regardless of his/her pre-qualification/approval--you can either agree to the lower price, see if your buyer can possibly add money to the downpayment, or your buyer can request another appraisal, sometimes it's done, others not, or simply move on--your agent can best advise based on the circumstances and how they relate to you.
1 vote Thank Flag Link Tue May 18, 2010
It sounds like your home didn't appraise for the buyer's offer price. The loan is conditional on the appraisal. The buyer's pre-qualification has nothing to do with the bank approving the loan in this case. The lender won't make a loan if the appraisal is lower than the offer price. You don't have to get a lawyer but you do have to rethink your home's list price. You can still renegotiate with the buyer on a new price.
1 vote Thank Flag Link Tue May 18, 2010
Maybe.

From your question, it's unclear exactly what happened. Or, more specifically, why the buyer's bank won't finance the sale. I'm guessing it's because your home didn't appraise for the contract price.

If your home didn't appraise for the contract price, ask your Realtor for advice. Depending on the contract, it's possible that the buyers have an "out" in that they can't get financing. You could always reduce the price of your home to the amount of the appraisal, if you're willing and able to do so. Or you could lower it some, and the buyers (if they're able) might put more money down.

But ask your Realtor for guidance.
1 vote Thank Flag Link Tue May 18, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
I'm confused as to why the buyer's bank had a problem with the seller's agent being in contact with the appraiser. I think this kind of contact happenes frequently to arrange for a time to have the house open for the appraiser and etc.

If the seller's agent was unduly trying to influence the appraiser's findings, that would have been unethical. However, if it was a contact made in order to facilitate an appraiser being done, it should not have been a problem.

scott@scott-schroeder.com
0 votes Thank Flag Link Wed May 19, 2010
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