Profile picture for user5823385

Buying house - seller paying to get out of house; worried about appraisal!

I'm in the process of buying a house. Seller and I agreed on a price and signed documents (lower than their asking). Based on their remaining mortgage, seller fees, etc. they will be bringing a decent bit of money to the table to close the deal (over $5000). Because of this, the seller says they will not have money to make repairs if anything is wrong, so it is being sold as-is. On the surface, the house is in fine condition, with relatively new renovations. I can back out if my inspector finds something wrong. My offer was the highest I am willing to the pay for this house- but what happens if the appraiser appraises the value to be lower than purchase? Since I already offered as much as I'm willing to pay, I assume it's reasonable to ask the seller to drop their price, even though they are already having to bring money to the table. Thoughts?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
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.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 08 2012 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (5)

I would not worry so much at this moment until the results of the appraisal come in.  Your lender will only lend you the appraised value.  Depending on the difference between your offer and the appraised value, you can ask the seller to lower the price, you can split the difference, you can bring the difference to the table or you can walk out.  If all that fails within the timetable of the financial contingency I would then contact a real estate attorney to see if you are able to walk out of the contract, it all depends how the P&S was written.  Good luck, positive thoughts are send your way!!!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
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.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 08 2012
Typically your offer is contingent on the home appraising at or above purchase price.... in other words, if it appraises low, you have the right to cancel.  Other options would be to negotiate with the seller to reduce the price to appraised value...but of course in this case the seller would have to have the funds available to do that.  Or if this is a home your really want you could purchase it anyway, but be aware your lender will only lend on the appraised value, so you would have to come up with the difference.  Your Realtor will guide you through the process....
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
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.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 08 2012
Getting an appraisal can usually be to the buyer's advantage giving
them leverage to shave a few thousand dollars off the contracted purchase price, flipside, appraisal comes in higher than purchase price, buyer knows they got a great deal. Win-win for the buyer. Sellers should keep their fingers crossed, buyer will elect out of appraisal
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
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.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 08 2012
In real estae, everything is negotiable. If the appraisal comes in low, I ask the seller to match the appraisal price. If the seller declines, then it is up to my buyer if they want to come up with the extra money, or walk away. Your agent should be able to give you a close idea what the home will come in at based on the sold comps. Another option may be to meet the seler half way if more money is needed, but since the seller cannot afford repairs, it doesn't sound like that may be an option. Again, everything is negotiable.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
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.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 08 2012
Based on an inspection and appraisal along with what is in your contract you both might be able to agree on walking away. But its best to talk to your realtor or have a real estate attorney advise you.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
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.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 08 2012
 
Related Questions
It makes body slim and smart without any side effect
I am trying to buy new home
Profile picture for Mary Allen
Latest answer by Mary Allen
2 hours ago | 2 answers
If utilities are off when doing initial walk through, who trurns them on for inspection
Profile picture for Mary Allen
Latest answer by Mary Allen
2 hours ago | 3 answers
Water and sewer cost
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.