Zillow Advice: Buying Process - Do banks negotiate the sale price of a short sale if appraisal comes in lower than offer?

Banks will negotiate anything ...

Tue, 07 Jul 2009 22:30:00 GMT

Banks will negotiate anything these days, you have to understand that they don't want to foreclose on properties since they're loosing so much money so they rather sell it through a short sale.
Negotiate with them and tell your agent not to let go.
If you have a good agent he will negotiate a really good deal for you.

Good Luck.
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Yup, you're right. They would ...

Fri, 10 Jul 2009 21:41:00 GMT

Yup, you're right. They would probably renegotiate so that they avoid the expense of redoing the listing/selling process. Yanni is correct, in a downtrending market failing to negotiate could very well cost the lender a bundle. They know that and now you do to.

If the appraisal comes out low it may be disputable. Appraisals are a bit of sticky wicket nowadays when appraisers are often working in foreign turf.

But most likely you've got a deal that will work, Congratulations, premature I realize but probably in order. Keep in mind that YOU got the agreement, that means your offer is best.

If the house doesn't appraise ...

Mon, 06 Jul 2009 04:31:00 GMT

If the house doesn't appraise for the price it's no bargain

Short Answer Yes they do ...

Sat, 04 Jul 2009 00:51:00 GMT

Short Answer Yes they do negotiate the short sale price if the appraisal comes in lower.

I would think you've got ...

Wed, 01 Jul 2009 22:18:00 GMT

I would think you've got a shot at renegotiating the price if the property does appraise for a lower amount. Know though, that FHA does require 2 appraisals and of course, the lower of the 2 is what sticks. Good luck!

Craig Whitlock
Coldwell Banker Residential Brokerage
Brentwood West Office
WestsideHomesGallery.com

The banks would want a buyer ...

Wed, 01 Jul 2009 20:06:00 GMT

The banks would want a buyer that will put more money down because this will be a strong buyer in their eyes.
So if they will get a lower offer then yours but with higher down payment, they will take the other offer.

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http://homesinsale.lisitingbook.com
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The truly wonderful thing ...

Wed, 01 Jul 2009 14:29:00 GMT

The truly wonderful thing I was reminded about FHA loans is once the home has been appraised the appraisal sticks to the property like flypaper. So if you opt to not buy the home, the next FHA lender will see that the home didn't appraise in a previous transaction. So my guess is the lender is gonna play ball with you.

Good luck.

I have a deal going in CA. ...

Wed, 01 Jul 2009 07:58:00 GMT

I have a deal going in CA. where this same thing happened. Appraised value came in lower then accepted offer. The Bank and buyer are re-negotiating. Chances are they will use your appraised value and move forward. They need to move these houses. Good Luck

You have little leverage ...

Wed, 01 Jul 2009 06:05:00 GMT

You have little leverage room from your info. The thing is if one appraisal comes low they might get a second one. Assuming you used a state approved real estate contract to buy you should have protections in case of an appraisal below sales price. Ask your realtor. In Texas we have a one page amendment where the sales price can be reduced to the appaised value(or less). But this also affects some of the other numbers in the contract and they must be agreed upon also. No one can say if they will reduce the sales price to meet a lower appraisal than sales price, but they do seem to want to sell this property.