Profile picture for Antalaf

We are purchasing a new home, low appraisal, builder not allowing it to close what can we do?

  • March 26 2009 - Murrieta
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Answers (3)

Here is your solution!

1.) Take the appliances and removable fixtures out of the purchase price. 2.) Also, take the seller paid financing costs out of the purchase price.
3.) Have another FHA approved appraiser review the original appraisal; make sure that the comparable properties used to determine the value include sales that are not listed in the Realtor listing service; direct sales from the builder to buyers in the same development.
4.) You may have to apply for your loan with a different lender.
5.) Have the builder write a promissory note (secured by the appliances and removable fixtures) as a separate loan; you will need to disclose the proposed debt on your loan application.)

If this does not work, you will have to pay the excess difference as previously suggested by the other pros; in addition to the required down payment as calculated from the lower appraised value.
  • March 26 2009
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Unfortunately, you will have to come up with the difference or not buy the house.  FHA does have a clause in the addendum that the house has to appraise so you may not be able to purchase FHA.  In the past, that appraisal stayed with the house for six months so you might want to find out with your realtor if the  builder is aware of that fact.  If FHA buyers are what he/she  is attracting, he/she might want to reconsider and sell you the house at the appraised value instead of waiting another six months.   You could fight the appraisal but you need data to back you up.  The underwriter does not have to agree with you.   Good Luck with it.  Cindy Kieft
  • March 26 2009
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Profile picture for Clearpoint
I'm not understanding the question.  The builder will not lower the purchase price to the appriased value so you can close or you don't have the money to come in with the difference between what it's worth and what you paid for it.  Is their anything in your contract about appriase value?
  • March 26 2009
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