Profile picture for erin.d.rudolph

Bank accepted our offer on a home, now wants a second appraisal. Why?

My husband and I put an offer on a foreclosure. It was sold in 2006 for $335,000. It was foreclosed on and has been vacant for the last year. The bank listed it at $285,000 and after much negotiation, we finally agreed on $265,000. So now 2 weeks later and no contract in hand, they say they want a second appraisal to make sure they aren't selling it too low. They were the ones who had the first appraisal done so why are they questioning it now? We don't have time to wait two more weeks for another appraisal. We have a toddler and are living in temporary housing that we will be getting kicked out of in a couple weeks! Is this house worth fighting for or should we just throw in the towel and move on?
  • November 26 2012 - Valdosta
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (6)

Profile picture for BrokerAppraiser
I'm an appraiser as well as broker, I only appraise for lender owned homes. I cant tell you without hesitation that the days of lenders selling for anything less than full market value are gone.

Bank owned properties typically have an appraisal completed when they aquire it (which is my role) and broker opinions before listing. They also complete AVMs which are similar to a zestimate. There is a systematic program lenders follow with these listings, they appear to be confirming the present value. These banks are despicable in how they operate - but if you want to dance you will do it to their music.

How did you ascertain purchase price - did you have an appraisal? Is this a cash deal? If not, you'll have an appraisal as well.

  • November 27 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
Yes, they could ask for more money.   

Good luck.
  • November 26 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for erin.d.rudolph
Thanks for the responses. My biggest fear is waiting two weeks for the appraisal and then have the bank either back out or reject our offer. Would this happen? Would they ever ask for more money?
  • November 26 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

If inventory is limited in your local market...it might be wise to "put up" with as much as you can to secure a home with historically low interest rates (if you are financing).

It is not uncommon for banks to order multiple appraisals. Once you have the "short sale approval letter" in your hands it will lay out all the terms:  Price, closing, etc.  It should be a good feeling, and I wish you the best.

Best wishes from So-Cal and good luck
  • November 26 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
A new appraisal is very common.  The market is changing, appraisals are only good for a small period of time.

If you don't have time to wait for two weeks, withdraw your offer and avoid short sales and foreclosures in your search.



  • November 26 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Hi, This is very common these days.  Typically the banks will do an appraisal and have a broker do a Brokers Price Opinion, they are covering their backs.  Only you can determine if it's worth sticking out or not, I recommend sitting tight.
Chris
  • November 26 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.