Zillow Advice: Buying Process - Appraisal value is less than Sale price, Bothell,WA http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ Zillow Advice | Zillow Real Estate There are a lot of good suggestions ... http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ There are a lot of good suggestions answered here.&nbsp; I would definitely inspect the appraisal.&nbsp; Sometimes mistakes are made and passed along in the appraisal and never given a second look.&nbsp; I recently had the same issue where the appraiser appraised the value of the home of a borrower I was working with low.&nbsp; It was because he missed a couple of positive adjustments.&nbsp; We also told the AMC (Appraisal management company) to include some newer higher comps, and that made the difference.&nbsp; Usually you only have one shot at it so I would contact an appraiser to review the appraisal.&nbsp; It may cost a couple of bucks but it would be worth it.&nbsp; Also you should inspect your REPC to see if you have passed your deadline on canceling your contract due to appraisal and make sure that deadline has not passed or is extended to give you enough time to fix the appraisal if a mistake has been made.&nbsp; But it is always to your benefit and a good idea first try&nbsp;to negotiate the price down as the first option.&nbsp; At least that is what I would do. Wed, 29 Jan 2014 04:47:00 GMT http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 2014-01-29T04:47:00Z 1/28/2014newhomelover - how ... http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 1/28/2014<br/><br/>newhomelover - how did your purchase transaction turn out ? Wed, 29 Jan 2014 04:37:00 GMT http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 2014-01-29T04:37:00Z 11/27/2013newhomelover - ... http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 11/27/2013<br/><br/>newhomelover - how did your purchase transwaction turn out ?&nbsp;&nbsp; did you follow through with it or&nbsp; did you exit the deal ? Tue, 26 Nov 2013 19:50:00 GMT http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 2013-11-26T19:50:00Z Did you put your earnest ... http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ Did you put your earnest money deposit at your realtor or title company's escrow or did you gave it to the builder? If not at the builder, your escrow company can help review the contract and any escrow instructions on who to release the money to. (Builder or you.) Sat, 12 Oct 2013 05:16:00 GMT http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 2013-10-12T05:16:00Z Lenders will lend on the ... http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ <p>Lenders will lend on the lower of the appraised value or the purchase price.&nbsp; In you case the appraised value is lower than the initially agreed upon price.&nbsp; If you have met the contingency dates on the purchase and sales contract (i.e. applying for a mortgage, commitment date) and your approval was contingent on an acceptable appraisal, then you should have the right to renegotiate the purchase price...Unless of course there is a clause in your contract that protects the seller in the event the value comes in lower.&nbsp; In my experience when value is lower you may either renegotiate the purchase price or end the contract.&nbsp; You should read your purchase and sales contract carefully or contact an attorney.<br/><br/>Good Luck</p> Sat, 12 Oct 2013 04:51:00 GMT http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 2013-10-12T04:51:00Z That would depend on whether ... http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ That would depend on whether you had an appraisal contingency in your sales contract.&nbsp;&nbsp;&nbsp; If you did, and the&nbsp;appraisal did not meet the price,&nbsp; you can go back to the table and re-negotiate. Fri, 11 Oct 2013 23:56:00 GMT http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 2013-10-11T23:56:00Z I agree with Ryan. &nbsp;I'm ... http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ I agree with Ryan. &nbsp;I'm really surprised you are running in to this with new construction in Bothell.<br/><br/>Keep in mind that an appraisal has its own weaknesses. The appraised value is one person's opinion of value based on historical comparables. &nbsp;There are times that appraisals come in low in our market because appraisers must look backwards at the market. &nbsp;They often aren't able to take into account the very low inventory we have that is pushing up values fairly quickly. That said, the difference in price vs. appraised value is pretty significant.<br/><br/>You are able to unilaterally terminate the contract using the 22A if you are not able to get to mutual agreement on the price based on the appraisal. &nbsp;You should be able to get your earnest money out (baring something in the builder's addendum that says otherwise or if you are building custom), however the money that you will most likely be forfeiting is any money that you have put in to upgrades.<br/><br/>I'm sure that your broker is walking you through all this already. &nbsp;Much of what everyone says here (including me) is based on our knowledge of past transactions and some major assumptions since we don't have a copy of your actual contract.<br/><br/>I wish you the best of luck and truly hope that you can keep lawyers out of the mix. &nbsp; Fri, 11 Oct 2013 23:12:00 GMT http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 2013-10-11T23:12:00Z My agent is separate from ... http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ My agent is separate from builder's agent. We know her for quite sometime now and she prepared the agreement for us. She has the Form 22a attached as a part of the agreement (financial addendum) which clearly states that the buyer will get back the earnest money in case if the seller is not coming down on price (appraisal price value). <br/><br/>Now my seller has come back with a counter offer of 337k. I totally hate the builder now. My builder was not ready to even install the garage door opener (which I had bought already) since it was not part of agreement. I am not going to pay him extra 4k just because he wants to sell that house for that price. I am going to reject&nbsp;their&nbsp;offer and try to get my earnest money (around 8k) back. I have already started to look for attorney. Wish me good luck!!! Fri, 11 Oct 2013 21:07:00 GMT http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 2013-10-11T21:07:00Z Yes make sure you look over ... http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ Yes make sure you look over the full contract before you back out. I am licensed lender that do business in the state of WA. I would be happy to assist you on this situation. Feel free to contact me. Fri, 11 Oct 2013 20:43:00 GMT http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 2013-10-11T20:43:00Z sounds like your logic for ... http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ <br/>sounds like your logic for the earnest money refund makes sense ....<br/><br/>Have you waived/ removed the financing contingency&nbsp; already ?<br/><br/>is your agent&nbsp; seperate from builder ?&nbsp; or a different&nbsp; firm that the builders listing agent ?<br/><br/>good luck and keep us posted :) Fri, 11 Oct 2013 20:38:00 GMT http://www.zillow.com/advice-thread/Appraisal-value-is-less-than-Sale-price-Bothell-WA/514028/ 2013-10-11T20:38:00Z