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The loan company doesn't care anything about zillow. In fact my loan officer told not to put much stock in the site. I had a contract on an average condition home without any major defects. The appraisal was 20k less than asking, 40k less than zestimate and over 50k less than the zillow estimator tool. The only thing this site did was cause the seller to say to me the house was up 10k on zillow when I backed out of the contract since they wouldn't drop the price. One of the homes listed on the compare portion of the estimator tool was actually sold, per the local county website, for 60k less than zillow posted. This site isn't very useful or accurate. Just hire a realtor in your area and follow what they say.
Just to clear up some misinformation on this page. If you have a competent lender and agent they will be able to get the appraisal done in time for you to cancel the contract and receive your deposit back. Never remove your appraisal contingency before the appraisal is done.
Really simple. There are three things you can do. 1. Have the seller agree to drop the purchase price.2. Come in with cash to make up the difference.3. Cancel the contract and find a new house.
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For Sale: $219,000
For Sale: $215,000
For Sale: $489,000