Home Buying in Los Angeles>Question Details

Lisalinn, Home Buyer in Los Angeles, CA

What if you offer more for a short sale home than the appraisal comes in as? Unfortunately, we trusted our agents?

Asked by Lisalinn, Los Angeles, CA Fri Apr 26, 2013

What if you offer more for a short sale home than the appraisal comes in as? Unfortunately, we trusted our agents recommend offer without an appraisal contingency which she also recommended. After research, confiding with a realtor friend who is outside the area, our figures are about 20k less than the house is worth. I'm disappointed in our agent, but we went in 25k less than what she tried to tell us to offer. We were way above the other 3 offers on the house, so this is why we decided to research the estimated value after we signed all the paper to begin the process. As of now, the BPO is being delay...interesting. Been 2 months, and the bank has yet to complete it. Any help?

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Mark Mintz’s answer
You got the offer accepted. That's the first hurdle. There were multiple offers and your agent got it done. Are you overpaying for the house? You won't know until you have an actual appraisal which won't occur until you enter escrow and that won't occur until you get an acceptance from the bank. It's early. Relax. It's going to be a long ride!

Los Angeles Real Estate is on fire. Home values are increasing daily. By the time you get your appraisal done, that difference you are concerned about may not exist anymore.

You say that an out of area agent helped you determine the actual value. I wouldn't trust their opinion. There are nuances in every neighborhood with differences that can range from street to street. Someone from out of the area can not possibly know how to accurately price a house.

You are not going to overpay for the house. Your lender won't let you.

Good luck!

Mark Mintz
1 vote Thank Flag Link Wed May 8, 2013
Aah ....Short Sales......unpredictable . Your agent knew what she was doing.
She made ur offer appealing ....No appraisal...highest offer. You probably would not have had an accepted offer without that in ur offer. The banks are also unpredictable in respondng. I have had a 6 Month wait....A 3 mnth wait u just don't know. You still have a way out should yu decide....just ask ur realtor.
0 votes Thank Flag Link Sun Apr 28, 2013
Those are the agents almost succeeding in todays market.... what she did was try to get the offer to stand out as best as possible, without talking to you guys and explaning what she was doing.... yes there is a way out if it. Hopefully she is working on that, if not pay the difference. But then again she will probably get you to believe her again like she did when you wrote the offer.
0 votes Thank Flag Link Fri Apr 26, 2013
Dear Lisalinn,
First of all, it is not for sure that your agent did not know what to offer for this property. You now have a foot in the place as we say, you have been chosen. You can have inspections contingency even if you do not have appraisal contingency. The inspection contingency starts after the acceptance form the lender, so you are in good shape still. They will have their BPO and you will negotiate. Also LA is very hot market and you might have to pay more now , you will still save if you buy now because of the low interest rate that will save you money in the long run. You might have just a bit of buyer's regret right now and its normal , just get your house!
Do you want that house or not?
Think good, it will be good!

Muriel Levin
Broker, Realtor, Greater Los Angeles Area
Certified negotiator, HAFA certified, Short sale and Foreclosure resources certified
Agent Immobilier a Los Angeles et la region du Sud de la Californie
Agence immobiliere de Confiance pour les francophones a Los Angeles, Beverly Hills, Hollywood, Santa Monica et toute la region du Sud, liste des achats et ventes immobilières gratuites.
muriellevin @ gmail.com
Web Reference: http://www.muriellevin.com
0 votes Thank Flag Link Fri Apr 26, 2013
In this market the buyer competition can often produce a final sales price that is higher than expected when looking at the comps. Your agent should be working with the listing agent to make sure that when the appraisal happens that the appraiser knows what they are doing, knows the comps and knows that it's a multiple offer situation.

You need to actually specify which appraisal you are talking about. I believe you are saying that the appraisal for your bank, that is funding your loan to purchase the property, has appraised it low. There is also the BPO for the lender that is taking a loss on the loan for the seller, and that appraisal could also be a problem.

I would be prepared to pay the difference if you want the property because it could likely delay the sale for at least another 3 months if you don't. You can also challenge the appraisal and have them reconsider it. If the BPO comes in at your price then send that with the challenge.
0 votes Thank Flag Link Fri Apr 26, 2013
That is a difficult question to answer without knowing all the details of the contract and what contingencies are in place... there are ways of cancelling -maybe?

Why would you work with an agent you do not trust? I try to avoid working with people that do not trust me. Life is too short to deal with relationships that you do not trust over a hand-sake.

Best of luck!

0 votes Thank Flag Link Fri Apr 26, 2013
You're correct. I don't trust her. It makes the transaction all that more frustrating. Ironically, she knew darn well the bid she was pushing us to offer was way too much. Thank goodness we came in lower than she suggested, but higher than needed. With that said, I certainly will not recommend her nor use her in the future.

Frankly, the market concerns me. It just seems as if the banks are creating a new bubble. Fortunately, we plan to stay in this home inevitably, so if it drops in value, no biggie. However, I cannot help but think how ridiculous the market has become because the banks are holding off on the foreclosures to the point it's driving up prices . Bankers certainly figured out how to manipulate te price of homes, but Realtors like her are not helping the situation.
Flag Sat Apr 27, 2013
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