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Bank loan Apprasial is being short $50,000 of purchasing price. what could be the resonable solution

  • July 29 2010 - Lincolnshire
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Answers (4)

As a buyer why would you want to buy a home some $50K more than it has been appraised for?

As A seller, I would look long and hard at the appraisal and either dispute it or accept that your home is not worth what you thought it was.  I don't think it is reasonable to expect a buyer to over pay.  You will most likely need to adjust the price down or take the property off the market.
  • July 30 2010
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Profile picture for Debbie Holmes
You are all assuming the question is asked by the buyer.  It could be the seller.  If I were the sellers agent I would try giving (I would have done it before the appraisal if I was worried) comps that I used to arrive at the price. Sometimes when challenged a low appraisal can move higher.

If not the settlement price should be at the lower appraisal level.  The seller is not always able to come to those terms because of mortgages and such.  I would not purchase a home above the appraisal price.  At $50,000 off an agent wasn't doing their job when they priced the home. I have also known for people to ask for a second appraisal...   That can be fraught with problems.. If it a short sale or an REO property the bank will probably settle at the lower amount.  
  • July 30 2010
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Celebrate! The contract price needs to be lowered. 50K under is not unusual in Lincolnshire and the appraiser is working for the LENDER not you!! You just have to pay him. In this market it is very common for the appraisal to come up short. Many deals are killed as a result because the seller still feels his property is 'special' and worth more.
Listen to yourself, not your agent who does have an interest in seeing the deal close!

philip
  • July 30 2010
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As a buyer that is to your advantage.  The seller must lower their offer price or you will have to bring the extra cash to closing.

  If an appraisal does not come in at value that is not a good sign to purchase at a higher price.  The whole purpose of an appraisal is to give true market value of what the neighboring properties are selling for.  It is rare on a purchase that a value would come in that low.  Heed warning the appraiser is there to protect you!  

You need to talk to your Real Estate agent about what to do next.  

Best Wishes,  
  • July 30 2010
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