we have been looking for some time,we have been pre-approved,$175,000. finally found something we liked in Dixon. It was offered at $169,900, our

Asked by Annettericks, Dixon, CA Wed Sep 1, 2010

agent put in a bid of $175,000, and it was taken. It was in escrow, we had inspections done,things seemed to be going, SLOWLY but going. after a few months ,O.K> now things get crazy , the appraisal of property was $165.000, the bank would not go down, they want 175 ,000 so after 6 months of us waiting we have no house they will not even go back to the offered amount of 169,900 puls they took there time giveing our down back?

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Mark Salmon, Agent, South Lake Tahoe, CA
Thu Sep 15, 2011
Annette,

Banks establish a list price based upon BPO's (Broker Price Opinions) from various local agents that they typically have relations with. This is how they come up with a value since they typically know nothing about the property themselves.....they are trusting of the local "professionals." Typically banks will come down to an the appraised amount, especially when it's so very close to their list price, offer, etc. I can't put too much pressure on your agent, as they don't have contact with the asset manager for the bank, but they can certainly be the squeaky wheel with the listing agent. I'm going to assume that received some typical paperwork from the REO lender (always noted as a counter offer with their boilerplate terms and conditions) that you had to sign prior to the bank executing your contract. This would be proof to you that you actually had a "deal." Assuming you did all this then I'm baffled as to why the bank wouldn't want to get this off of the balance sheet.

Is the property still on the market? There's something missing here.....
0 votes
, ,
Thu Sep 15, 2011
In the case of low appraisal value I rely on both listing and selling agents to provide comps to see if the value can be reviewed. Once new comps are declined most banks will lower the sales price. Sounds to me like this was more of an agent issue than a bank issue. Just saying...
0 votes
Olga Cisneros, Agent, Vacaville, CA
Thu Sep 15, 2011
Hi Annette,

I agree with Kamal with everything on her email . MOST of the banks will drop the price to appriased value. The agent should of looked through the comps in the area prior to submitting an offer for you can have an idea what they are selling like in that area. If not done, then sometimes an offer goes in for higher and your agent will have to request for them to drop the price when the appraisal reflect those comparisons. Let this experience not change your mind about buying a home. I work the Solano Area if you need an agent. Best wishes.
0 votes
Kamal Randha…, Agent, El Sobrante, CA
Thu Sep 2, 2010
Hello Annette,

I'm sorry you had to go through this terrible ordeal. Usually, the banks DO accept the appraised price..Im' not sure what went wrong in your case. Are you sure the listing agent is working closely with the bank? Sometimes, new agents don't want to put in the extra work of going back to the banks to have a price changed, therefore, they don't even try but they tell the buyers, the bank is not accepting it. You should ask for something in writing that the offer was presented to the bank.

Then, if all else fails, think about how much you like this home? What will it mean to lose it? Is it end of the world? Then consider if 10K makes that much of a difference. good luck. :)

Kamal Randhawa
Broker
510-932-1066
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