Home Buying in Monticello>Question Details

Dan, Home Buyer in Minneapolis, MN

can I save money on an appraisal if I know the lender will reject it. (conventional loan, 1st offer on house, heating and electrical outdated.

Asked by Dan, Minneapolis, MN Sun Jul 4, 2010

the house is 120 years old with gravity heat and electric work is outdated and faulty in some areas. If they reject it I have wasted my money because I can not buy it for cash and I do not want to do contract for deed. does the seller use the 1st offerer as a guinie pig to see what their options are. Can I some how look up the lender guidelines ahead of time to know if they will reject these items.

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Have a contractor look at it (unless you plane on doing the work yourself) and determine how much it will cost to bring the home to code and then to bring it to neighborhood standards and subtract that from the average market value in the area and that is what you should offer - if someone is willing to pay more let them! If you don't have more than 20k to fix the home move on to the next! If you are a strong enough buyer/ investor to fix a home like that then you probably will be a strong enough buyer to get a loan for the home! If you are going FHA - that is just a waste of time.

Ben Strom
0 votes Thank Flag Link Thu Jul 21, 2011
Sellers dont use the first offer a guinnie pig. I think getting the appraisal may be your best bet because then you would have something to show the seller and maybe be negotiate a better price.
Web Reference: http://www.lennyfrolov.com
0 votes Thank Flag Link Mon Jul 5, 2010
Oh, Dan, these questions are all too specific for us to answer because each situation is so different. If you think the house is worth less than what you agreed upon, why did you agree to that price in the first place? These are all questions for your agent to answer. If you don't have an agent, this would be a good example of why buyers need agents! These are all things we help you determine, meaning fair market value less the cost of some of the egregious issues that need to be addressed immediately, and SOOOOO much more!

We also don't know if it's a short sale or a foreclosure which also mitigates the type of deal you can hope to make.

Too much for us to try to give you answers, Dan. You need to consult with someone in person. Call a couple of agents and explain where you are and see if they will agree to help you. It might not be too late for them to get involved.

Good luck!
0 votes Thank Flag Link Mon Jul 5, 2010
Have your Realtor, and lender help you on this. It may not be worth getting an appraisal, if you know it won't pass..
0 votes Thank Flag Link Mon Jul 5, 2010
Part of this will come down to the appraiser doing the appraisal - some note everything and some do not so sometimes it is a crap shoot.

Talk to your agent and your lender - they should be able to provide you with more guidance for your situation. At the end of the day there is no guarantee on what may or may not be an issue until the appraisal is complete and the Underwriter has reviewed it. Sometimes there is risk.

If you do not want to or cannot afford to lose a house due to a negative appraisal you may want to consider whether you should go after this house at all, though depending on your price point all houses may have similar challenges.
0 votes Thank Flag Link Sun Jul 4, 2010
What kind of loan do you have? VA, FHA, Conventional? Owner occupied, investment?
0 votes Thank Flag Link Sun Jul 4, 2010
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