Home Selling in Peoria>Question Details

Char, Home Seller in Peoria, IL

we are selling our house,the buyer is is going with a Va loan the appraisal was lower than the asking price,how should we procced? We are not happy wi

Asked by Char, Peoria, IL Thu Sep 8, 2011

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Hi Char: You have received some good answers. You might also want to read this article on the subject. See web reference below.
0 votes Thank Flag Link Fri Sep 9, 2011
Char,
There is much more info neede before proceeding... like how much lower was the appraisal, what kind of property do you have, what bank, etc. With this info, I have been able to make my sellers thousands of dollars in their favor. Hopefully, you are working with a full time, professional Realtor who is experienced enough to safeguard your side of the transaction.
0 votes Thank Flag Link Fri Sep 9, 2011
Hi Char,
Before asking for a second appraisal, I would ask the buyer for a copy of the appraisal that they received. You can then have your real estate agent look to see if these are the most comparable sales in your area. If they are not, there may be an opportunity to contest the appraisal. Otherwise, it is solely up to you to decide whether or not to put it back on the market and see if the next buyer's appraisal comes in higher.

Cecelia Marlow
Chicago Bancorp
Mortgage Banker
312-738-6294
0 votes Thank Flag Link Thu Sep 8, 2011
I would absolutely ask for a second appraisal and ensure they request that the appraiser is from the area. That can be a problem. Also, view the appraisal and see if there are any challenges. Have your Realtor look up the comparables and see if it is accurate. Sometimes - not a lot - but sometimes you can have a successful challenge of the appraisal and the lender will get a revised one.

Otherwise, you may unfortunately need to either let this buyer go or renegotiate for the lower price.
0 votes Thank Flag Link Thu Sep 8, 2011
One option is to request a second appraisal. I did this for a transaction about a year ago, because both the buyer and the seller felt that the appraiser did not do a good job. The second appraisal came in higher and all parties accepted it. Of course, this is only an option if the buyer, the seller, and the lender are all in agreement. Otherwise, you are unfortunately stuck with the lower number, and will have to negotiate something with the buyer.
Web Reference: http://www.GregMcCoy.com
0 votes Thank Flag Link Thu Sep 8, 2011
Char your options are to lower the price to what the appriased value is or to stad firm, either the buyer comes up with the difference in cash or you lose your buyer and start over. Your listing agent should have completed a bpo to assess what the house is worth in todays market. How does that compare with the appraisal?
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Sep 8, 2011
Unfortunately there is not a lot of recourse. If buyer does not want to go to another lender, perhaps agents involved could do some negotiating where the seller & buyer both give a little - seller on the price & the buyer and what they are able to bring to the table.
0 votes Thank Flag Link Thu Sep 8, 2011
This is going around.

As the Seller, there isn't much you can do, other than lowering the Selling price.
Asking for another Appraisal is really not an option, the Lender can refuse to recognize it.

The Buyer is the one who can come up with the difference or find another Lender;
Unfortunately, the Buyer is probably glad that it came in low; they have leverage to get it cheaper.

What did your CMA, by your Realtor, come in at?
Did it agree with the Appraisal?

Good luck and may God bless
0 votes Thank Flag Link Thu Sep 8, 2011
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