Home Buying in Yorkmount>Question Details

cahughes2010…, Home Buyer in Charlotte, NC

Will this property appraise for asking price? Love the property but afraid to make offer for fear I will lose $$ when it does appraise with lender...

Asked by cahughes2010@live.com, Charlotte, NC Sun Nov 10, 2013

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Daniel Fisher’s answer
Good evening, CAHughes:
The only way to determine if a property will appraise is to get an appraisal. A good real estate broker will be able to use similar methodology as an appraiser to identify and evaluate comparable sales and if they are similar to the home you are purchasing, should be able to come fairly close to the probable sales price. We can include certain contract language to protect buyers from losing an earnest money deposit if a property does not appraise, but the appraisal cost, title search and other inspection costs are generally at risk as soon as the service is performed. There are strategies we employ to minimize this risk. If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be pleased to provide that service. If you appreciate this answer, please give it a thumbs up, or if this was the most helpful answer, please say thanks with a best answer click.
0 votes Thank Flag Link Tue Nov 12, 2013
As others have advised you...1) Work with a buyer's agent who will be representing you. 2) Make sure your contract includes language that states the property must appraise for the purchase price or higher.
0 votes Thank Flag Link Mon Nov 11, 2013

I do not see a link to a property listed to give you an idea of what the value should be in relation to the asking price. I do not know if you are working with a Realtor or not. If not then you need to hire one to represent your best interests.

A buyer's agent, like myself, can give you comparable for the house and tell you what they feel would be a fair price for the house. Also, there are some other things to take into consideration when you put an offer in on a house. Depending on the type of loan you are looking to get there are addendums that require that the house appraise for the asking price or you have the option of walking away.

But you really need to know what the house should sell for and see what you can buy the home for are too different numbers.....I really recommend you hire a buyer's agent. The best part of it is that there is no cost to you for it. The seller will pay the fee of the buyer's agent at closing on a house you purchase.

You in essence have nothing to lose and everything to gain by having a buyer's agent represent you.

Dave diCecco
Helen Adams Realty
Cell: 704-519-7895
0 votes Thank Flag Link Mon Nov 11, 2013
I agree with my collegues. Hire a buyer agent, who has connections with different banks and/or mortgage brokers will help you making comparables and use his knowledge to your best interest.
As well a lot depends from which program the lender put you in
Suggestion is get pre-qualify so you know if:
1) you can buy the property;
2) Use the due diligence period to have the bank appraise the property.
0 votes Thank Flag Link Sun Nov 10, 2013
Walter Lentini
Wilkinson and Associates
Flag Sun Nov 10, 2013
What Amy said below is spot on! I always written into our contracts that the appraised price shall meet or exceed the purchase price, or we renegotiate. A buyer's agent will protect you. Good luck!
0 votes Thank Flag Link Sun Nov 10, 2013

I don't see a link to the property you are talking about.

Are you working with a buyer's agent that will help you make your offer? If so, this is a concern that you should address with them. I have had this same concern with some of my buyers and there are ways to write the offer that can protect you in the case that the home doesn't appraise. Of course these changes to the contract are in addition to the research that your buyers agent will do for you to make sure that your offer is in line with the comparable sales before you even make an offer.

If you do not have a buyer's agent, I would highly recommend that you hire one, especially in this situation. An good agent that know how to help you analyze comparable sales and write the contrac in a way that will protect you will be a great value to you.

Amy Baker
Allen Tate Realtors
0 votes Thank Flag Link Sun Nov 10, 2013
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