ca_lexa, Home Buyer in Boca Raton, FL

Will Fannie Mae lower price to match appraised value?

Asked by ca_lexa, Boca Raton, FL Sat Aug 10, 2013

I'm currently in an contractual agreement to purchase a home (foreclosure) in Tamarac at $160K. It's a nice place, built in 2007, but strongly feel appraisal will come in a lot lower, in the $140-145K range.

I know every situation is difference, but what are the chances that Fannie Mae will reduce to appraised value? 50% of the time? What's been your experience?

Help the community by answering this question:


This is a very common occurance. However, Fannie Mae will not disclose their standard process for accepting or declining the appraised value. Most often, they will accept the appraised value as the new sale price. My own experience has been approximately 80% of the time. But, that is just my experience.

Every property and asset manager is different. I have had clients place and win offer on two exact same properties. One appraisal was accepted, the other declined. If there were a lot of offers on a popular listing, they may decline the appraised value if it was too much lower than the list price in order to accept a cash one for more. The cash offer does not require an appraisal, and the negotiated price is final. Remember, they do not disclose the number of offers or the amount of each received.

Keep in mind that Fannie Mae is also financing home purchases with their very own appraisals. They don't want other lenders denying their own borrowers with similar appraisal issues. However, they understand that the seller's goal is to market and obtain the best possible price for the property they are selling.

Good house hunting!
0 votes Thank Flag Link Fri Aug 23, 2013
0 votes Thank Flag Link Mon Aug 12, 2013
You state that you are in a "contractual agreement". Does it mean that Fannie has accepted your offer? If that is the case then you need to read the Counter Offer Addendum, or have you agent look at the counter offer on the Homepath site. These days the inspection period is 10 days from acknowledgement date (not execution date) and the buyer typically has to make up the appraisal amount. Have your agent look over the counter offer addendum to see the terms, as terms can be different from the standard counter offer depending on the property.
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0 votes Thank Flag Link Mon Aug 12, 2013
In most cases they will highly consider the reduction. But as stated by Jacquie, there is no way of knowing for sure until your Realtor communicates with the listing agent representing FNMA. Good luck!!
0 votes Thank Flag Link Sun Aug 11, 2013
There is no absolute with this question. If it comes in at a lower appraised value your Realtor will know how to negotiate with Fannie Mae. I have had it go both ways. The bottom line is you can always negotiate and your Realtor will guide you to your options. Best of luck

Jacquie Yekmalian
Florida Real Assist
0 votes Thank Flag Link Sun Aug 11, 2013
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