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peter, Home Buyer in 91775

I just purchase a house and start escrow. The appraise report came back and show that the house is 300 sq smal

Asked by peter, 91775 Mon Feb 11, 2008

I just purchase a house and start escrow. The appraise report came back and show that the house is 300 sq smaller than the seller’s listed. We really like that house but feel cheated. I live in California, can anyone give me advise what to do?

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Peter- I would agree with the 1st answer. Your agent is representing you. This is where your choice of agents will now matter. At this point your agent should have informed you if your Loan and/or the Appraisal Contingency time frame is up or not, if the Seller is willing to come down in price, or if the lender has verified with the appraiser if the sq footage is correct. What does the lender/mortgage banker/broker say about going forward for the accepted price vs a lower value for the property now that the house apppears to be 300 sq ft less. The person who is representing you for obtaining the loan along with your agent can have a dialogue with the Sellers to see if they will come down in price-if infact you still want the property and you have not passed the Loan and/or the Appraisal contingency timeframe.
Debbi Frolove
1 vote Thank Flag Link Mon Feb 11, 2008
You can check with your local building dept. also to see if any permits for additions are on file! I have also seen the county recorders office to have the wrong information inputed in the system. Have your realtor give you a hand in finding out the sq ft.
1 vote Thank Flag Link Mon Feb 11, 2008
Hi Peter,
I would first find out if the appraiser made a typo before you take action to back out. I have seen it happen where they (appraiser) had accidentally left the prior appraisals numbers in their system. I would also find out when your contingency period for inspections is over & make sure you are comfortable with the whole process before you decide to move forward. Act quickly & don't delay.
Take care,
Christina
1 vote Thank Flag Link Mon Feb 11, 2008
If you are within the contingency period agreed upon within your purchase contract, you do have choices. It is frequent to see discrepancies in sq. footage. Exterior measurements, interior measurements or however determined are subject to error. 300sf when speaking of a 5,000sf residence is not much to balk about. 300sf in a 800 sf home is substantial. What do County records show? Is their a discrepancy or....miscalculation? No one could determine this based on the information provided. Your Realtor or agent would be able to guide you at this point. What does your agent or Realtor advise?
0 votes Thank Flag Link Mon Feb 11, 2008
Peter, If you are wondering if you can get out of the contract, here is the rule of thumb: If you are given information about the square footage by the seller or their agent, and they have the following statement after their square footage number, "square footage is not guaranteed by the seller or the seller's agent, for exact square footage, the buyer should rely on their own measurement or that of an appraiser" - you can't get out of the contract on the square footage issue. Nor would you have much strength to ask for a price reduction. Is the house worth less if it is 300 sq. feet smaller? Technically, yes it is. Have your agent sort this out for you - not just brush it aside.
0 votes Thank Flag Link Mon Feb 11, 2008
Peter,

I had this happen once with a condo I was buying. It was a condo in a two family house, and it turned out that the seller was using the foundation measurements for their determination of square footage. You should talk to your agent about your options. I eventually backed out of the transaction.
0 votes Thank Flag Link Mon Feb 11, 2008
Hi Peter,
I would suggest that you discuss your concerns with your Real Estate Agent.
Nancy Sanborn
Web Reference: http://www.sanbornteam.com
0 votes Thank Flag Link Mon Feb 11, 2008
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