Home Buying in Davie>Question Details

Looking, Home Buyer in Davie, FL

What usually happens when a seller prices a property higher than the assessments will allow funding a mortgage to buy the property?

Asked by Looking, Davie, FL Sun Jul 29, 2012

Help the community by answering this question:

Answers

3
Hey Looking!

If you're looking at a home that has sat on the market for months or years, it is quite likely that the seller has priced it above market value, and even if they received an offer the bank would require an appraisal, and they would need to renegotiate the price.

I'm advising my buyers to seriously look at homes that have been on the market for more than 30 days and are priced about 20% over their target price. Smart Lowballs can work! If you don't have an agent, give me a call if you'd like to discuss a specific property. I'd be happy to help you run an analysis on what the "right" price should be.

Ann
0 votes Thank Flag Link Sun Jul 29, 2012
Hi Looking,

Assessments have nothing to do with funding. You may mean Appraisals? If the appraisal comes in lower than the agreed upon purchase price, the buyer can pay the difference between appraised value and purchase price (unless it's a VA loan as the buyer is not allowed to pay the difference), the buyer and seller can agree to 'split' the difference, the seller can agree to lower the purchase price to appraised value, or the contract can be cancelled if buyer and seller cannot agree (if there is an appraisal contingency in effect).

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sun Jul 29, 2012
I don't think a mortgage has much to do with assessments, it has all to do with appraisals. Assessments are just for tax purposes and have little to do with costs or values of property, they determine how much you pay in taxes. Pricing to high and having a low appraisal is a problem in that a lender will not loan more than the appraised amount and the buyer must come up with the cash difference or the seller must lower to the appraised amount or a combo of the two.
0 votes Thank Flag Link Sun Jul 29, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer