Home Selling in 63050>Question Details

Debra Heady, Home Buyer in Hillsboro, MO

If agent said appraisal would come in $45k higher than purchase price but it didnt...can I cancel contract?

Asked by Debra Heady, Hillsboro, MO Tue Sep 20, 2011

It was advertised as 6 bedroom but when appraised three bedrooms were valued at 1/3 of value of rest of house because they are in finished basement.

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You are the employer. Your agent is there to work for you. Maybe there is a good reason she made that statement. You may want to ask some questions before making an abrupt decision to fire the agent. Keep in mind that it is ALWAYS good to do your own research! Our goal is to make you happy but who knows you better than you. Dig deep into the things that are important to you. Best wishes! 314-704-5424
0 votes Thank Flag Link Wed May 22, 2013
In my opinion you can cancel an agent contract for no reason and at any time. It is interesting if indeed an agent said this without merit and legitimate credibility. Maybe the agent said "In my opinion," and it got lost in translation? I'm guessing you probably do not have this in writing from your agent. The important aspect is now you know the properties value with some credibility to back it up. Good luck!
0 votes Thank Flag Link Thu Sep 22, 2011
Debra,
A few things come to my mind, did the agent put this in writing so you have some basis to claim fraud, was the appraiser acting as many do right now, conservatively and finally did the appraisal meet the value required by the offer and to obtain financing?
Did the agent makes a statement like, "This house is worth $1,000,000 but you can buy it for $500,000” in such a way that is provable or was it just hype? If the statement was in writing, you may have a cause to go after the agent for misrepresentation, but your contract with the seller may still be valid. To pursue your options here you will need to speak with an attorney.
If the appraiser came in at or slightly above the contract amount, this is common. After all of the problems with fraudulent mortgages & appraisals a few years ago, many appraisers are erring on the low side, especially if it meets the necessary contract requirements, rather than risk over valuing a home. You might try to speak directly with the appraiser and get your concerns addressed directly. There are rules about bedroom below grade they are required to follow. If the rooms have a closet and an accessible window, it may be a bedroom for your purposes, but not theirs.
Finally, if the appraisal came in at the offer price or above, your grievance again will be with the agent who claimed the higher amount. This may not invalidate your purchase contract. Again, you'll need to review your contract and possibly discuss your options with an attorney to be certain of your options.
0 votes Thank Flag Link Tue Sep 20, 2011
If the agent gave you a Contract that said that he guaranteed the Appraisal would be $45,000 higher, you can sure the pants off him.
I wish that we Realtors were able to control the Appraisals. That would be neat.
Question, was this the Listing Agent, or YOUR Agent?
Did you have them do a CMA before you made your offer?
Was your offer higher than the CMA?
You didn't say; did you get the house?

Good luck and may God bless
0 votes Thank Flag Link Tue Sep 20, 2011
So....the real question is did it appraise for your purchase price or not???? Your agent was wrong for telling you what a property WOULD appraise for. They could say what they THINK it should appraise for. But his opinion doesn't count. Do you want the house or not? If the appraisal came in AT purchase price and you want the house you should be happy! But if you don't want the house and it did appraise for purchase price then you have some 'splaining to do Lucy! You can't back out of a contract just because your agent told you it would appraise for $45K higher.
0 votes Thank Flag Link Tue Sep 20, 2011
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