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123, Home Buyer in New Bedford, MA

What should I do when the appraisal comes in 20,000 lower then sale price? It's a new construction

Asked by 123, New Bedford, MA Mon Aug 24, 2009

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8
If you are the buyer, have a second appraisal done. Also a good buyers agent will review the appraisal and cross reference it with the comps they pulled to make sure the appraiser did a good job. Every now and then you can get a botched appraisal.

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0 votes Thank Flag Link Tue Oct 25, 2011
No doubt the comps are outdated today...This thread was from August of 2009. Unless you have a time machine I am guessing the OPs issues have been resolved!
0 votes Thank Flag Link Mon Oct 24, 2011
I am a local Realtor and have seen this situation, usually because of a lack of comparable homes and the cost approach being used. A new construction off by $20,000 in some of the local areas is a result of using an out of town bank. I know that Citizens Union is a great local bank offering great rates with loans kept in house.
I have a lot of experience with new homes in Bristol County and can give you further details if I know where the property is located.
Regards,
Laurie Ammann
0 votes Thank Flag Link Mon Oct 24, 2011
Lender won't allow you purchase home over valued. Best work on reduction of home have your buyers agent contact builder. Home can't sale to anyone unless a cash offer HOWEVER why would anyone over pay on property.

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0 votes Thank Flag Link Mon Aug 24, 2009
123,

To be on the safe side....consult an attorney prior to making any decisions relative to this scenario. ....one that is becoming all together too common.

Good luck
The Eckler Team
0 votes Thank Flag Link Mon Aug 24, 2009
It's an opportunity to walk away, make up the difference, and or seller accepts lower price. It's just that simple!
0 votes Thank Flag Link Mon Aug 24, 2009
Raymond,

HVCC does not allow you to just ask for another appraisal. You can dispute it but you have to be able to prove that the dispute is legit. As a buyer the low appraisal works to your advantage. If it's a bad appraisal and it can be disputed let the seller do the leg work. If they can't successfully argue a higher value, the appraisala is likely a very good appraisal.
0 votes Thank Flag Link Mon Aug 24, 2009
Give the appraisal to the seller/builder and tell them you are not willing to pay $20,000 more than the property is appraising for.

At least that is what I would do.
0 votes Thank Flag Link Mon Aug 24, 2009
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