Profile picture for user5292948

Financing a purchase

We have an offer extended on a house in San Rafael. The property is unique in several regards. First, the lot is over 3 acres in size - and still in town - compared to other lots which range anywhere from 7000 - 14000 sq ft. Secondly, the house is relatively small - only 1200 sq. feet. Lastly, the house is in dis-repair. It has not been lived in for over 20 years. It's been used as a summer/vacation destination. All of which makes the house difficult to "comp". We've had an appraisal done. Unfortunately, the appraiser and the lender have valued the property dramatically different. In fact, the lender has valued the property $225k less than the appraiser. This delta has happened 2x now with 2 separate lender/appraiser teams. We are not in a position to make up this much of a difference with cash. Are there other financing alternatives we can utilize to close on this deal? Thanks! T-
  • October 19 2012 - San Rafael
  • 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 (4)

Profile picture for Marin Homes
Will the owner carry a second mortgage, for a short term, and so make up any difference between offered price and appraised value. You could than upgrade the home and add square footage, after taking ownership, and with the sweat equity refinance out of the second mortgage. It is not a perfect solution, but........
  • March 15 2013
  • 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 user5292948
Our issue is the other way - in that the appraisals are "too high". I am no real estate expert, but even I can shoot holes in both appraisals. As such, so have both lenders. I was under the impression that after the housing bubble burst and the changes by the fed, that appraisers would be more conscience of the "real value" of the asset. In our case, both "independent appraisals" came in at the exact same amount - awful coincidental that it aligns. They happen to align with our offer - which we expected was on the high side and would get adjusted based on the appraisals. We didn't expect such a huge gap. The surprising part is that the appraisers have aligned PERFECTLY with our offer, versus providing a true market value. Their assumptions to get to the higher valuation are VERY thin. I just want/need an accurate appraised value from an independent impartial expert. I thought that's what appraisers did!
  • October 20 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.

Have you tried a locally owned bank? Sometimes they are easier to work with on these properties. They realize the real value. Also, is there any chance the seller will meet you somewhere with a price that you CAN finance?
  • October 19 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.

Not that I know of...I had a similar problem with a duplex in Covina (Los Angeles area) and we contested the value the first time...failed...so we started over with a different lender (conventional loan product) Ans our 'assigned' appraiser happened to be familiar with the area and provided us with a more realistic value (like 160k higher) so we were able to fund. Your Realtor should be aiding the appraiser with comps that will help you with your scenario. So try to challenge the valuation, or try again with a new lender (assuming you weren't buying FHA or else that appraisal will stick for a while). Best wishes from So-Cal and good luck
  • October 19 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.