Home Selling in 85051>Question Details

Ro, Home Seller in 85051

House did not appraise for offered price with buyer's VA lender. If this contract is canceled, will this SAME appraisal price be used with new

Asked by Ro, 85051 Thu Apr 7, 2011


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Yes with VA & FHA, a case number is assigned to the property and the case number will also be attached to the appraisal that is conducted. It will remain that way for 6mo and any new buyer with FHA or VA financing will have to deal with the value that has been assigned to it. New negotiations are advised based on the appraised value for the sake of this transaction. Otherwise, only a conventional loan buyer with a new conventional appraisal will this change the circumstances for the property. Best of luck!
Web Reference: http://www.loansbyleo.com
1 vote Thank Flag Link Thu Apr 7, 2011
An appraisel is an opinion of value at a specific time. Another appraisel at a differnt time could be differnt. Your orginal appriasel could influance a new one. Thanks
0 votes Thank Flag Link Thu Apr 7, 2011
A new loan application will always require a new appraisal. It may well be that the appraiser (even if a different person) will have access to the previous appraisal and that may influence him. Also realize that real estate prices in Phoenix are still in decline so later appraisals are likely to be as low or lower that previous ones.

Joe Rinde
Keller Williams
0 votes Thank Flag Link Thu Apr 7, 2011
Ro, I wanted to check with my lender contact and they said the appraisal stays with the property for 6 months so that would apply to any future "VA" buyers. Discuss this with your agent and come up with a strategy if possible.
0 votes Thank Flag Link Thu Apr 7, 2011

It might! It will depend on the type of financing the new buyer will have, and the period between that appraisal and the new offer. Your agent will be able to provide you with the specific details.

In either case your best bet is for your agent to negotiate with the buyers agent. There are many things that can be done to save the deal, remember that price is only one part of the equation. Even if the same appraisal is not used for a future buyer, chances are that a future appraisal will still not meet the current listing price.

Carlos J. Ramírez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart -
0 votes Thank Flag Link Thu Apr 7, 2011
The VA Loan can only go up to the lower of the sales price and the appraised value.

As the seller, you should ask for a copy of the appraisal to verify it in fact has come in lower than the offer price. Ask your agent if they can find other similiar comparables that were not shown on this appraisal to substantiate your price.

The VA will allow you to ask for what is called a reconsideration of value. With a reconsideration of value, you can request the value of the home be higher based on other comps not used in the appraisal.

I'm sure some of our lender friends will provide more insight to your question.

Good luck!
0 votes Thank Flag Link Thu Apr 7, 2011
Not Necessarily. You should check with your Realtor to determine where the short fall came between the Appraised price and the Listing Price. See what comparables were utilized in each so you can price accordingly. And if your Realtor feels that the appriasal is unjustifibly low, then determine if another appraisal can be ordered to satisfy the lender and Buyer. It's an expense you would not normally have to incur, but trying to come to terms with a willing and able Buyer may be much more beneficial.
0 votes Thank Flag Link Thu Apr 7, 2011
Yes or now it is up to the seller. T
he Buyer is not obligated to buy a home at "over-appraised price" (if the contract reads that way)
The seller isn't obligated to list or accept and offer on the property for any number other than what he/she decides.
The Appraisal won't be good for another buyer if that is what you where asking.
Hope this helps.
Web Reference: http://bradbergamini.com
0 votes Thank Flag Link Thu Apr 7, 2011
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