Question for Real Estate experts (and anyone interested)

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Apr 17, 2015
9:02:05pm

MapCoug

Question for Real Estate experts (and anyone interested)

We are under contract to buy a house. We got the lenders appraisal today and it is $5,000 less than our agreed to sale price. This means we need to bring $5,000 to the table in order to close. We don't have it.

What should we do? Tell the sellers to lower the price? Borrow from family? Sell some cars?

What would you do?

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MapCoug

Previous username: tanksalot
Bio page: MapCoug
Joined: Apr 29, 2011
Last login: Apr 25, 2024
Total posts: 5,129 (795 FO)

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Messages

Author

Time

Question for Real Estate experts (and anyone interested)

MapCoug

4/17/15 9:02pm

sellers lower price is what should happen.

cougsrule

4/17/15 9:08pm

Agree. Use it to negotiate.

4/17/15 9:12pm

Yes. Bank won't finance at the agreed price

scott715

4/17/15 9:16pm

What worries me is that we already talked them down ~10% below their original

MapCoug

4/17/15 9:15pm

Start there and see what they say. They need to solve it. So what they dropped

scott715

4/17/15 9:42pm

right, market drives price. He's willing to pay $5k more. There's the market

BYUFBDAD

4/17/15 9:49pm

I am not willing to flat out pay 5k more

MapCoug

4/17/15 9:54pm

offer to split it with him. He comes down $2500, you bring in $2500.

BYUFBDAD

4/17/15 9:57pm

I like it! Thanks

MapCoug

4/17/15 10:03pm

RE: I like it! Thanks

BYUFBDAD

4/17/15 10:08pm

I'd start asking for the full concession. Then when the seller twists MapCoug's

garyfan

4/17/15 11:03pm

disagree, I've had appraisers miss a value by $50k. If you were the seller

BYUFBDAD

4/17/15 9:48pm

then sellers agent should have comps to support higher value. If

cougsrule

4/17/15 10:12pm

The seller's agent did have comps to support the value, they were discounted.

BYUFBDAD

4/17/15 10:20pm

The comps were not likely very good then. I've seen agents provide comps that.

monteburns

4/17/15 10:24pm

You hit on one of the issues with this house

MapCoug

4/17/15 10:20pm

Correct. Good data provided to the appraiser can win a dispute. I've won almost

monteburns

4/17/15 10:21pm

Though this is true, in his case we're only talking 5k. When it's that close

monteburns

4/17/15 10:18pm

I agree.

cougsrule

4/17/15 10:57pm

Seller concession is another option. Get another appraisal if possible.

cougsareforreal

4/17/15 9:13pm

seller can carry back, get a new appraisal, or renegotiate

NorthBayCoug

4/17/15 9:25pm

What does "Seller can carry back" mean?

MapCoug

4/17/15 9:34pm

You make monthly payments to the seller for the 5k.

BYUFBDAD

4/17/15 9:38pm

carry back a portion of the sales price

NorthBayCoug

4/17/15 9:42pm

Carry backs usually are not allowed w typical financing.

monteburns

4/17/15 9:44pm

What's the better determination of market value, an appraiser or an arm's length

Pasadena

4/17/15 9:48pm

For the purpose of the transaction, it's obviously the appraisal.

monteburns

4/17/15 10:06pm

First thing to do is talk to your loan agent about having the appraisal reviewed

BYUFBDAD

4/17/15 9:39pm

You can dispute appraisals but you better have good data backing you up, and

monteburns

4/17/15 10:13pm

True, market specific. In the bay area, the buyer loses in his scenario.

BYUFBDAD

4/17/15 10:19pm

Agreed. His scenario is we're only talking 5k though.

monteburns

4/17/15 10:26pm

I would not buy the house if I couldn't come up with $5k.

Pasadena

4/17/15 9:47pm

To be completely honest...

MapCoug

4/17/15 9:50pm

I see. Makes sense. Others here have mentioned things you could do

Pasadena

4/17/15 9:52pm

your lender needs to be involved with this decision. Even if you borrow it from

BYUFBDAD

4/17/15 9:52pm

First and foremost I'd go to the seller and renegotiate. Appraisals coming in lo

monteburns

4/17/15 10:10pm

I should probably back out of real estate discussions, I realize that I live and

BYUFBDAD

4/17/15 10:26pm

No, you have good insight.

monteburns

4/17/15 10:26pm

Walk away if they won´t drop to appraisal.

4/18/15 12:26am

Negotiate

4/18/15 8:26am

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