Home Selling in Attleboro>Question Details

Bella, Home Seller in Attleboro, MA

Home appraisal came in 5K lower than selling price! what now?

Asked by Bella, Attleboro, MA Fri Apr 2, 2010

I'm 25 days from closing and the appraisal came in 5 K lower then what i sold it for. I'm so frustrated! I'm already packed and ready to go. what now? the appraiser has not sent the info to the lender yet, it's been a week. do you think they're trying to find 5K more in value? does this mean I have to lower my price? do i stop packing? I'm so upset about this.

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Unless there are some new comps that are going to close at higher prices in the near future, it is doubtful that another buyer would get a higher appraisal, and could potentially end up with a lower appraisal. Also, is it worth it to you to continue paying your loan until you find another buyer, which could take some time? In the end, it could cost you more than $5000. If the appraisal was not sent to the lender yet, they could be trying to see if there is anything else they can do. I had a situation recently where an appraisal came in low, but I noticed that the appraiser gave the same square footage to 2 other comps, even though this house had an extension in the back. He probably made the error because of the snow, so just made an assumption. They looked exactly the same from the front. Once I pointed that out, he corrected it and came in at value.
1 vote Thank Flag Link Fri Apr 2, 2010
If the appraisal did in fact come lower than your agreed selling price, it's up to your buyers if they want to proceed by possibly adding more money down or renegotiate the price with you--you may wish to consider renegotiating and letting go of the $5,000 and keep packing--who knows when or how much your next offer will be.
1 vote Thank Flag Link Fri Apr 2, 2010
Look at the link.
Appraisers are required to estimate future values. You are in a declining market.
Best is to negotiate a solution and get out, now.

Either lower the priced $5K
Get the buyer to meet you somewhere in the middle....
Or blow up the transaction.
0 votes Thank Flag Link Sat Apr 3, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Sorry to hear about this where is your listing agent who is suppose to be handling this.

If the appraisal is less than executed contract NO lender will loan money to a home buyer on over valued home. You then need to reduce sales price meet the appraised value.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Fri Apr 2, 2010
Hi Bella. UGH...Last week when you posed the question about keeping the house staged, I told you this might happen. I also said that your house isn't sold until have a closing and get a check. I was hoping I was wrong but it looks like I was unfortunately right on this one. Well you and buyer have a few options.

1. The buyer will have to come up with another $5K if they want the house (and have the cash to do so)
2. You will have to lower the price to meet the appraisal if you want to sell it.
3. You can ask the lender to order another appraisal which they may or may not do and may ask you to pay for.
4. See if your agent can supply the appraiser with any other info or comps that would warrant an increase of $5K for your house
5. You can lower price $2,500 and the buyer kick in another $2,500

Keep us posted and Good Luck

Jason Stevens, ABR,GRI
Kevin Flynn Realty, Inc.
email: jasonstevens@embarqmail.com
0 votes Thank Flag Link Fri Apr 2, 2010
Unless there are some new comps that are going to close at higher prices in the near future, it is doubtful that another buyer would get a higher appraisal, and could potentially end up with a lower appraisal. Also, is it worth it to you to continue paying your loan until you find another buyer, which could take some time? In the end, it could cost you more than $5000. If the appraisal was not sent to the lender yet, they could be trying to see if there is anything else they can do. I had a situation recently where an appraisal came in low, but I noticed that the appraiser gave the same square footage to 2 other comps, even though this house had an extension in the back. He probably made the error because of the snow, so just made an assumption. They looked exactly the same from the front. Once I pointed that out, he corrected it and came in at value.
0 votes Thank Flag Link Fri Apr 2, 2010
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