The museum district is a tricky area. As you know your house may be completely renovated but the house right next door which sold a month ago and will be used as a comparable had not been touched in ages. Your Realtor should be able to help out by asking the appraiser questions before allowing them access to the property for the appraisal. They should be making sure the appraiser works in the area, and knows the houses from within. If that is not the case, they should request another appraiser who works the museum district more frequently. You cannot request a specific appraiser, as the lender cannot talk to the appraiser, but you have the right to veto an appraiser before they have access. An appraisal based on statistics and MLS photos only may not be in your best interest.
It is my impression that the lender may allow the buyer to put more money down on a conventional loan, but each lender/bank has their own "layers" which may not allow this procedure. Another lender may be an answer.
That's not true at all. Of course you can pay the differnce if the seller is not willing to adjust the sales price. The monies you pay for the overage will not be counted towards your down payment, so if you are trying to put 20% down, you will need to add the overage to your down payment. I of course would recommend you get the seller to lower the sales price first. If you are getting an FHA loan on the home, the appraisal stays wth the property for six months and therefore the seller will not be able to sell it to someone else getting an FHA loan above appraisal price. Secondly, I would try to challenge the appraisal if the seller is not willing to lower.
Give me a call and I would be happy to help guide you.
Ryan C. Sanford
Associate Broker, CDPE
The Ryan Sanford Team
9401 Courthouse Road, Suite 200
Chesterfield, VA 23832
804-423-2392 e fax
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This communication is provided to you for informational purposes only and should not be relied upon by you. RE/MAX Commonwealth and Ryan Sanford is not a mortgage lender and so you should contact your lender directly to learn more about its mortgage products and your eligibility for such products.
I m with Theresa, seek out a new lender. Also many time appraisals come in low due to the tight margins a particular lender may have have and the buy back requirements imposed upon them shuold the borrower default. Appraisals can swing quite a bit.
If it does not appraise and you get a back up offer, you will have the same issue with the next buyer. No one is going to pay more for a home than it's worth and just like someone shopping for a car or a TV, they want the best price.
In cases like yours where the sales price and appraisal are possibly so close, I recommend a pre-listing appraisal for my clients. That way they see what the home will be valued at and hopefully it relieves this issue later when we have an actual offer. Good luck!!
One thing concerning me though, is that I was also told the appraiser can only use comps from the past 3 months and in the Museum District that will be difficult. This also makes no sense to me, and I would think 6 months would be more appropriate even in a changing market (particularly at this time of year with fewer sales). Thoughts?