Appraisal Lower than offer

[StartingOver10]

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@Sassy_Taurus wrote:
Startingover10 That's what I thought. When I called the escrow company yesterday the lady made it seem like she was drawing it up and would be emailing it over. I never received it. Not sure if the realtor has it holding. They keep saying they can turn this around but I'm over them. I actually called the listing agent myself and was told to wait until next week for the seller to make final decision.

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If you were going with an FHA loan, then check the addendum for FHA financing where it states you get a refund of your EMD if the property doesn't appraise to the contract price and the price can't be adjusted (as previously posted).  The broker, your Realtor, usually prepares the Cancellation and Release of Contract - you sign it and it is presented to the seller for their signature and then the signed off cancellation is presented to the escrow co for disbursal of the EMD.  Did you sign the release yet or was your agent trying to get the seller to sign off first?  They can't hold your deposit if the appraisal came in low. It is in black and white right in the FHA addendum.

[Sassy_Taurus]

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@StartingOver10 wrote:

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@Sassy_Taurus wrote:
Startingover10 That's what I thought. When I called the escrow company yesterday the lady made it seem like she was drawing it up and would be emailing it over. I never received it. Not sure if the realtor has it holding. They keep saying they can turn this around but I'm over them. I actually called the listing agent myself and was told to wait until next week for the seller to make final decision.

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If you were going with an FHA loan, then check the addendum for FHA financing where it states you get a refund of your EMD if the property doesn't appraise to the contract price and the price can't be adjusted (as previously posted).  The broker, your Realtor, usually prepares the Cancellation and Release of Contract - you sign it and it is presented to the seller for their signature and then the signed off cancellation is presented to the escrow co for disbursal of the EMD.  Did you sign the release yet or was your agent trying to get the seller to sign off first?  They can't hold your deposit if the appraisal came in low. It is in black and white right in the FHA addendum.

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My realtor had me sign the cancellation of contract and I believe he emailed it over to the listing agent and escrow company. The escrow company said that the seller has to sign off in order for me to receive my EMD back. Everyone's saying the seller is out of the country returning sometime next week. They did say they had to prepare a document for us to sign also. I plan on calling them on Monday because like you said I signed electronically and they should be able to do the same. I want to get back out there and hopefully find another home that I like. I don't want this to prevent me from putting another offer in 

[GirlMelanie89]

Sassy!! Any updates yet?! 

[Sassy_Taurus]

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@GirlMelanie89 wrote:

Sassy!! Any updates yet?! 

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The seller does not want to lower the listing price. Escrow just called me to let me know that they're issuing my deposit minus their cancellation fee. After I through a fit they agreed to waive their fee. I saw a few houses over the weekend so I might try again.

[Sassy_Taurus]

It just sucks that I'm out of $750 for appraisal & home inspection. Now I have to pay another $750 smh

[GirlMelanie89]

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@Sassy_Taurus wrote:
It just sucks that I'm out of $750 for appraisal & home inspection. Now I have to pay another $750 smh

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Wow!!! I cannot believe that! I am so very sorry. But just try to remember that everything happens for a reason. (Easier said than done) But theres something better out there for you!!! I cant believe the sellers wouldnt budge.  People like that can make the home buying process very difficult and discouraging. Keep me posted.  Im here if you need to vent! 

[Sassy_Taurus]

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@GirlMelanie89 wrote:

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@Sassy_Taurus wrote:
It just sucks that I'm out of $750 for appraisal & home inspection. Now I have to pay another $750 smh

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Wow!!! I cannot believe that! I am so very sorry. But just try to remember that everything happens for a reason. (Easier said than done) But theres something better out there for you!!! I cant believe the sellers wouldnt budge.  People like that can make the home buying process very difficult and discouraging. Keep me posted.  Im here if you need to vent! 

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Thank you. It really is comforting to know you have others going through the home buying process that you can talk to. Outside of this forum I'm basically on my own. I'll definitely keep you posted. 

[GirlMelanie89]

You're welcome!! Good luck and I hope you find something you love again! The townhouse I was interested in sold this past weekend and initially I was sad, but like I just told you, everything happens for a reason!! It's going to work out!! 😊

[Ragelog]

Sassy I am sorry to hear it all didn't work out. I was worried about my appraisal until it came back ok. 

Was there anything on the home inspection they would have needed to fix? Maybe you could negotiate not having them fix x items from the inspection in return they reduce the price if it is a home you truly like.

Otherwise move on to the next.

If my appraisal had come in low and the sellers were unwilling to budge I would have had to walk away as well.

That said I wasn't expecting to feel different having a home versus renting but it feels good hard to quantify but a different sense of pride in where I live.

I hope it works out either on this one or the next. On the bright side more time to save money. What part of the country are you buying in?

Good Luck.

[Sassy_Taurus]

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@Ragelog wrote:

Sassy I am sorry to hear it all didn't work out. I was worried about my appraisal until it came back ok. 

Was there anything on the home inspection they would have needed to fix? Maybe you could negotiate not having them fix x items from the inspection in return they reduce the price if it is a home you truly like.

Otherwise move on to the next.

If my appraisal had come in low and the sellers were unwilling to budge I would have had to walk away as well.

That said I wasn't expecting to feel different having a home versus renting but it feels good hard to quantify but a different sense of pride in where I live.

I hope it works out either on this one or the next. On the bright side more time to save money. What part of the country are you buying in?

Good Luck.

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 So it looks like my deal will be saved. I received a call yesterday asking if I was still interested in the home. Seller now wants to negotiate on the price. I'll keep you posted as soon as I'm back under contract. I'm in California.