119 views

Jeff Adams

"Top Producer Agent"
  • 3 Helpful Answers
  • 8 Answers
  • 13 Listings
Agent at RE/MAX Suburban
Specialties:
Residential, Buyers and Sellers. Investment properties, commercial real estate. Foreclosures, short sales, bank owned properties.
Certifications
& Awards:
Jeff received the Raising Star award from RE/MAX Internation his first year in business and has been a member of the 100% club for five years.
Testimonials:
"Jeff was very easy to contact and very available to us. He was very well informed about the areas that we were interested in. Thanks Jeff for all your ... show more

Appraisal for home sale.

Jeff Adams answered:
Hello Roger,

And congratulations on finding one of the two, maybe three, people who are out there looking for a home for sale! (HA HA!)

Yes, it happens, although I wouldn't call it a common occurrence.

But if it does happen, don't assume that your deal is dead. The lender may approve the loan based on the appraised price, which could leave two options: a) the buyer could come up with the additional funds - but let's be honest, that's not realistic in this market so that leaves you with b) you could attempt to keep your buyer by renegotiating the sale price to one based on the appraised value.

To give you a concrete example of what I mean with the first option, let's pretend the sale price is $300,000 but the appraisal comes in at $290,000 and the buyer is putting down 5% for their loan. They would have the option of paying you the full price out of their pocket and having their financing based on 95% of the $290,000. Like I said, doesn't seem likely that this would be a scenario that would pan out in your favor, since they'd have to come up with $10,000 to cover the shortage between the sale price and the appraised value PLUS the 5% down they need for their loan.

Whatever happens, I would recommend that you either rely on the experience of the agent you are working with (assuming you are) or your attorney.

Like I said, Congratulations and Good Luck! - Thu Jul 9 2009, 13:53

Contact Jeff Adams

Jeff Adams is a member of Trulia Voices:

Get the inside scoop on your area and home buying and selling.
Ask and answer questions about real estate.
Build your profile and contact home buyers, sellers and agents.
Flag this profile Report this profile
 
Copyright © 2009 Trulia, Inc. All rights reserved.   |   Fair Housing and Equal Opportunity
Help us improve our service—send us feedback