Jsosa2b, Home Buyer in 07621

I am waiting for an appraisal for a home in bergenfield. Im so afraid that it will come out less than what i

Asked by Jsosa2b, 07621 Wed Jul 15, 2009

offered for it. Any idea for a 3 bedroom 1 bath house on main st and s washington st?

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Fred Wolfe, Agent, San Diego, CA
Wed Jul 15, 2009
BEST ANSWER
You're probably going to be right; don't you like being right? Lenders used to be able to send their own appraisers out to get the job done, but not anymore. The best thing you can do is have 3 comparables printed up and ready to give to the appraiser when they show up, that justify the price you want to get.
0 votes
Approved Fun…, , Teaneck, NJ
Thu Jul 11, 2013
Unfortunately, in today’s marketplace and real estate environment a “low appraisal” is the #1 reason that contracts and deals fall apart.
Here are a few options and suggestions that you can consider if your appraisal comes in below market price:
1) Challenge the appraisal. Ask for a copy. You are certainly entitled if you paid for it. Work with your Realtor to make sure the appraiser used the best comps in the market.
2) Challenge the lender. Did they use a local appraiser? Is this appraiser familiar with the intricacies of the area?
3) Negotiate with the seller. An appraisal done by an independent 3rd party company is the perfect proof that their home isn’t worth what they think it is. Let them rethink their sale price and come down to something more reasonable with the market estimates.
4) Accept it. Depending on your down-payment, if it is substantial enough - a lower than expected purchase price can have minimal effects on your rates and terms. Speak to your lender.
5) Walk away. Sometimes the best deals are the ones that you don’t do. It might be hard, but if you aren’t “feeling it” after a low appraisal, its often best to walk away and start fresh elsewhere.
0 votes
Robert & Car…, Agent, Bergenfield, NJ
Thu Jul 16, 2009
If the appraisal will be less than what you offered, then you can ask your lawyer to renegotiate the price. Otherwise, your mortgage lender will not provide you with the necessary loan to purchase the house.
Web Reference:  http://www.bestnjrealty.com
0 votes
Bev & Bob Me…, Agent, Livingston, NJ
Thu Jul 16, 2009
Hi Jsosa2b,

Most times the buyer is not there for an appraisal. Your agent can try to give three comparables. However, I was recently chastised by an appraiser because he said he's not allowed to take any comparables or to use comparables given by the agent. He just wanted a copy of the contract.

If the house appraises for less and the owner wants to sell, then the lawyer can show that the home appraised for less and get the price lowered to that amount, which is good for you. We just did this a couple of weeks ago. The mortgage company said in this market they wouldn't allow the buyer to put down cash to cover the gap. As your agent, I would recommend against this, too.

Another option is to challenge the initial appraisal if it doesn't appear sound or to see if you can get another appraisal. If you get another one, sometimes the seller will pay for it or split the costs.

Don't be afraid. Know that appraisals can be a pain, but are trying to cover the bank's butt and yours. Question the appraisal details. If it appears sound and the price didn't meet yours, you should ask yourself "why am I trying to pay this much anyway".
0 votes
Elizabeth He…, Agent, Agawam, MA
Wed Jul 15, 2009
If the appraisal is lower than your bid the bank will finance less. You can still buy the house, but you'll have to either pay for the difference out of pocket or have your agent renegotiate your offer.
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