Asked by Marc Wilson, Oakland, CA • Thu Jun 25, 2009
We put a high bid ($50K over asking) on a REO property in east Oakland because there were 12 other buyers. The bank took our offer and passed on two cash offers under asking. It's been appraised at $250K (our comps suggested a $265 value), and since we qualified for an FHA loan, we're now waiting on the FHA appraiser. Are we correct in assuming that if the appraisal comes in at $250K (or lower), that the bank can either bring the price down to this lower appraisal price, OR, the bank can hold us to our asking and we have to come up with the 3.5% down on the full $300K we originally offered? I'm assuming our other option is that they only come down a bit and we renegotiate or we walk away from the deal. My question is whether, in your experiences with recent REO trends, banks drop all the way to the lowest appraisal price, hold out for our accepted price or meet halfway between the low appraisal and our offer? Yes, we're first-time homebuyers and we're learning fast! Thanks!
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