Home Buying in Porterville>Question Details

Mitzi, Home Buyer in Porterville, CA

appraisal came in lower than price agreed to and sellers wont go lower should i walk away from the house?

Asked by Mitzi, Porterville, CA Sat Dec 13, 2008

its about a 17,000 difference and now our agent is getting another appraiser that will appraise for 9,000 more than price agreed to. should we worry that something is wrong with the house 'cause of the first appraisal. we really dont want to pay for a house thats worth less than we are paying

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The magnitude of difference depends on the overall value. 26,000 on a million is nothing. On 250,000 it is 10%. But if lender uses the appraisal, as is, the short-fall is a problem. A seller who turns down a good offer without attempting to save the deal is the biggest looser. The market is declining and the next offer may be a long way off and at the rate of decline, will be worth less month to month. Ask your agent to show seller the monthly decline in average sales in the town, year on year. Break it down to a month. You need a sharp agent.
1 vote Thank Flag Link Sat Dec 13, 2008
1st question; Who reccomended the first appraiser? Your bank, the seller, sellers bank. You are stating that someone elase can come in @ $9,000 over asking. Does anyone want to tell me how we got into this overall (National) pickle in the first place? All appraisers are nuts right now. Don't get one opinion, get 3. Overall, if you like the home. It's yours. Find a way to buy it. Call mom & dad.
0 votes Thank Flag Link Sat Dec 13, 2008
Mitzi -

Definitely request a copy of both appraisals and have your agent review the information with you. Check out the comparison properties used and find out what the reductions were based on. The difference seems to be out of the ordinary in this market/environment. Look at the details to see if there is a middle ground.

The main question is what does your lender say about the two appraisals? Which one are they going to accept? That will tell you the chances of it being resolved.

Good luck,
CJ
Web Reference: http://www.TalkToCJ.com
0 votes Thank Flag Link Sat Dec 13, 2008
Ask to see why the appraisal was low and see what the second appraisal comes in at. Then make your decision. Remember, it's a buyer's market.
0 votes Thank Flag Link Sat Dec 13, 2008
Split the difference. the first one is 17k below the second is 9k above if they will take 4k less than originaly agreed and you plan on staying for a while why not.
0 votes Thank Flag Link Sat Dec 13, 2008
Compare 2 appraisals I have seen where there has been error made on the appraisal who refused to correct his report. GREAT QUESTION to protect yourself question info. provided. Have you requested to see comp value prior to any further expense. If a home wont appraise lender will not provide a loan.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Dec 13, 2008
Yes! Move on to a different home. You pay for the apprasial but he works for the mortgage company. That mortgage company is not requied to accept the new apprasial. And, if they did when it went before the review board it would be a big red flag to the approving authorities that something was amiss. They will question, Why a different appraiser than the one they normally use and see on the loan documents?
Web Reference: http://Ask4Greg.com
0 votes Thank Flag Link Sat Dec 13, 2008
So that would be a total of $26k difference between the two appraisers? That seems like an aweful big difference. Request to see a copy of the appraisal-you paid for it. Look at the comparables of both appraisals that were used with your realtor and decide where to go from there. How do you know that the new appraisal will come in $9k more before they've seen the property? Appraisals are not an exact Science-the first appraiser may not have used correct comparables in the same area. Good luck-I'm sure you will work it out.
0 votes Thank Flag Link Sat Dec 13, 2008
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