Profile picture for gillcj

Ask our community...All cash deal

I'm buying a Fannie Mae property all cash. I want to get the property appraised before opening escrow. Will the bank lower the price on a cash deal if the appriased value is less than the offer price? I have done some research about last six month sales and $$$/sqfeet etc but still to be sure I want to get the appraisal done. My agent informed me that if its a LOAN than bank has to agree to the appraised value but they may not agree on a cash deal. Please advise.
  • January 28 2011 - Elk Grove
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Answers (4)

Profile picture for wetdawgs

If your original written offer says that offer price is contingent on an appraisal meeting the offer price, sometimes the seller (bank) will meet the price.

  • January 28 2011
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Did you waive the appraisal contingency?  If you did not, then you can go back to the drawing table and re-negotiate the price based on the appraised value.
  • January 28 2011
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You shouldn't be making cash offers unless you KNOW what homes are worth. I make cash offers, I personally couldn't possibly care less what an appraisor thought the home waw worth, because by the time I make an offer in an area, I know that area far better than any apprisor could possibly know it.
  • January 28 2011
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Profile picture for Jerry Current
One other point to add to the other great comments here.  The seller never HAS to do anything when it comes to negotiating.  Even if the value were to come in lower than the purchase price, the seller can stick to the agreed upon price - then you are faced with a choice to either purchase the property, knowing the appraised value, or walking from the deal.
  • January 28 2011
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