Zillow Advice: Buying Process - Seller relisted the house for sale while we are still under the contract. http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ Zillow Advice | Zillow Real Estate That is unfortunate...but ... http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ That is unfortunate...but you should of received an escrow cancellation notice, and perhaps a refund of your deposit monies.<br/><br/>Sorry you had a bad experience, but you got a lot of good advice here. &nbsp;Hopefully you find a better property to call home, soon :)<br/><br/>Best wishes from So-Cal and good luck Mon, 05 Nov 2012 21:19:00 GMT http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ 2012-11-05T21:19:00Z Wow. &nbsp;Sounds like very ... http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ Wow. &nbsp;Sounds like very poor communication between the parties. <br/><br/>And it sounds like the seller has made an obvious choice without discussing any potential to save the current buyer.&nbsp;<br/><br/>Your lender will only originate a loan for the actual value of the property. &nbsp;And if this is an FHA appraisal, the seller will have to honor this value amount from ANY FHA buyer for a period of at least 3 months {I believe! - dont quote me on exact timeline}. &nbsp;<br/><br/>If you're going the Conventional financing route {{and IF there is still any chance to save the deal}}, you could try for a 2nd opinion on the appraisal. &nbsp;This would cost you more out-of-pocket.<br/><br/>In any case, the buyer does have the option to bring a cash contribution difference between the appraised value and the contract price. &nbsp;Not sure why anyone would do that, particularly for such a large difference in values.<br/><br/>Hope that helps nonetheless. &nbsp;Good luck. &nbsp;Shayla Twit, Sarasota FL Realtor Mon, 05 Nov 2012 20:07:00 GMT http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ 2012-11-05T20:07:00Z Thank you very much everybody.&nbsp;This ... http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ Thank you very much everybody.&nbsp;<br/>This short, but exhausting process was definitely a great lesson for us. We won't make the same mistake again.<br/><br/> Mon, 05 Nov 2012 18:55:00 GMT http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ 2012-11-05T18:55:00Z Your agent should be doing ... http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ Your agent should be doing detailed CMAs for you before you put in an offer.&nbsp; This should take into account that the property is a foreclosure and the condition of the property.&nbsp;&nbsp; The comment "<em>might appraise for less, can renegotiate</em>" is a throw away phrase. &nbsp; A tiny bit of renegotiation may be possible, not 20% of the offer price. &nbsp;&nbsp; <br/><br/>Foreclosures are not easy with FHA financing, because there are often many factors required by FHA (such as no peeling paint) that can't be met with a foreclosure.&nbsp;&nbsp; FHA loans are tricky enough with short sales.&nbsp;&nbsp; <br/><br/>What to do?&nbsp; I'd cancel the contract at this point and move on having learned some lessons.&nbsp;&nbsp;&nbsp;&nbsp; As a first time home buyer wanting FHA financing, foreclosures may not be a good choice.<br/><br/><br/><br/> Mon, 05 Nov 2012 18:50:00 GMT http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ 2012-11-05T18:50:00Z Yes, this property is owned ... http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ Yes, this property is owned by the bank and there was only one more offer besides ours. We submitted the offer for the higher price because the seller came back with "give me the highest you can &nbsp;pay" counter-offer and we agreed. We are the first time home-buyers, so we didn't ask the right questions to our agent and he said that there was a possibility the appraisal would come lower, but we could renegotiate the price. Nobody expected it would come back $40k less than a sale price.&nbsp;<br/>The only deadlines that we were given was to perform the inspection in 7 days (which we did) and to close escrow by Nov 19th.&nbsp;<br/>I really don't know what we'll do if they don't accept the offer. We already spent over $700 for the appraisal and inspection, and we most likely we will not get this money back. I would like to know, however, how we can protect ourselves in the future from losing more money on appraisals. We'd like to make offers on other houses, but we don't want to lose more money for nothing.&nbsp; Mon, 05 Nov 2012 18:39:00 GMT http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ 2012-11-05T18:39:00Z Is this a bank owned property? ... http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ Is this a bank owned property? Were there multiple bidders? Why did you offer more than the asking price?<br/><br/>Also, did some other deadline pass? Did your deadline to have a firm mortgage commitment pass? I am just wondering if it is possible that they are simply not going to respond to your request to reduce the price until some other deadline the negates your contract passes.&nbsp;<br/><br/>What is your plan if they refuse to reduce the price? Many banks are beginning to do this for exactly the reason Wetdawgs pointed out.&nbsp;<br/><br/>Did your agent caution you about the appraisal issue?&nbsp; Mon, 05 Nov 2012 18:23:00 GMT http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ 2012-11-05T18:23:00Z Thank you very much for the ... http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ Thank you very much for the quick replies. The house we are trying to buy is a foreclosure.&nbsp;<br/>We were looking at other homes for sale in the area and they were in the similar price range; we had no idea that the appraisal would come in this low. If we knew it would appraise for that little, we would never submit an offer. It seems like the appraiser has the final word in the transaction.<br/>I am wondering how the seller will sell the house right now.&nbsp;Apparently, the appraisal stays with the house for 6 months. From what I was told, the new potential buyer won't be able to get this house on the FHA loan, unless he/she comes up with the difference in cash. But who, would like to spend $25,000 more on something that is not worth that much. We'll see what happens.&nbsp; Mon, 05 Nov 2012 18:05:00 GMT http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ 2012-11-05T18:05:00Z Until the contract is finalized ... http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ Until the contract is finalized (i.e. all the money has changed hands), they are allowed to advertise it.&nbsp;&nbsp; Often agents label these "pending" but not always. <br/><br/>Did you have comps to justify your offer price of $205k?&nbsp; <br/><br/>There is a huge difference between $165k and your original offer price.&nbsp;&nbsp;&nbsp; A drop from offer above asking down to 83% of asking is likely to be a huge shock. &nbsp;&nbsp; If I were a seller, I would be canceling the contract because it appears you bid it up so they selected your offer, but aren't willing to stand behind your offer.<br/><br/><br/><br/><br/> Mon, 05 Nov 2012 17:50:00 GMT http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ 2012-11-05T17:50:00Z If you were obtaining a loan ... http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ If you were obtaining a loan for the original amount of $205,000 and an appraisal came in at $165,000 this most likely caused some issues. If you were paying in cash or only getting a loan for the $165,000 or less then it shouldn't cause a problem. As for the addendum double check to see that there wasn't an expiration date. Many real estate contracts do have an expiration date/time where if the recipient does not respond the contract becomes null and void.<br/><br/>In any case I would have your agent contact the sellers agent directly if at all possible and find out what the issue is. Even if the addendum expired there should still be a pending contract since you said the seller did accept the original $205,000 offer. Mon, 05 Nov 2012 17:30:00 GMT http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ 2012-11-05T17:30:00Z The home should still be ... http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ <p>The home should still be in pending status since you are still in contract. This would vary from MLS to MLS, but based on just the info we have it should still be in pending status. I would have your agent get clarification from the seller immediately. Your agent can also check into whether or not this can (or should) be reported to the local MLS.</p> Mon, 05 Nov 2012 17:04:00 GMT http://www.zillow.com/advice-thread/Seller-relisted-the-house-for-sale-while-we-are-still-under-the-contract/467355/ 2012-11-05T17:04:00Z