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New Contributor
Posts: 71
Registered: ‎08-27-2008
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Appraisal really, really low...

Listed at 249900, 218 days on market, offered 245000, they accepted with paying 6% closing, we are approved for 250,000 FHA. Now, today, it appraised at 223,000! LO sent over some non-forclousure comps that our realtor sent him to try to get it up somewhat. I dont know if the builder (new house, never lived in ) will bite.  We dont have enough saved to cover closing.....any ideas..thoughts....wine?

Senior Contributor
Posts: 3,299
Registered: ‎04-22-2008

Re: Appraisal really, really low...

Simple thought is that the house is overpriced.

 

Comps on new homes are tough because usually they are compared to older homes.  Prior to the downturn, new homes would appriase higher than older homes due to the demand.  But now new home demand is down and the homes are not appraising for more than a simliarly sized/built newer house of a couple years old.    If the house has been on market for 218 days though, it is definitley time for them to drop the price more.

New Contributor
Posts: 71
Registered: ‎08-27-2008
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Re: Appraisal really, really low...

[ Edited ]

ok, our realtor emailed us that in fact the appraiser did not raise the number, so 223,000 was sent over to the sellers agent. She then asked that we, in writing, send her an acceptance of the appraisl.?   Is that business as usual?

We are very nervous, but it would seem logical for them to accept it....right?

Message Edited by debc on 03-11-2009 04:58 PM
Senior Contributor
Posts: 3,299
Registered: ‎04-22-2008
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Re: Appraisal really, really low...

That makes no sense.  The appraisal is suppossed to be unbiased and separated from the buyer so why would they need you to "agree" to it.  Maybe they just want the letter to use as leverage against the seller to try and get them to drop the price.
New Contributor
Posts: 71
Registered: ‎08-27-2008
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Re: Appraisal really, really low...

Well, they can leverage all they want, it is what it is and we will not pay more for a house than its value. I feel that buying it now, we will continue to lose value for the next year or two, who knows maybe more, given the economic climate. We will take that risk, but can they risk having it back on the market, again, unless they get a conventional loan buyer I dont see that being in thier best ineterest right now. Time will tell....hopfully today.
Contributor
Posts: 84
Registered: ‎12-03-2008
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Re: Appraisal really, really low...

[ Edited ]

we just bought a new home in jan. went under contract for an asking price of 279,900. we were going va, so when the apprasal came it only appraised for 280,189. not much over asking

 

 

in the end, the builder (it was a new home, never lived in, on the market for 18months) dropped the price to 240,069.  if it has been on the market for THAT long, they need to lower the price. i'd tell them i'm not paying a dime over what its worth, they can bite or you can walk...i played it like that on my home...and it worked in the end. however if it hadn't, i would have eventually found a new home i'd "LOVE"

 

if it doesnt work out there will always be another house Smiley Happy

Message Edited by navywendy00 on 03-12-2009 09:31 AM
Established Member
Posts: 39
Registered: ‎11-23-2008
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Re: Appraisal really, really low...

deb, I think I may end up in the situation you are in.  With the house we want to buy, I've been checking the zillow dot com site and it seems that the estimated value on the house keeps dropping every couple of days.  I think the owners think that their house is worth a lot more than it really is in today's market...

 

But, I've also been checking on other houses that I'm interested in (houses just aren't selling around here!) and the prices keep dropping.  So, if the owner of the house we plan to buy won't be reasonable, I'm sure others will be. 

 

Though I do love the house and it feels right, I'm trying very hard to keep from falling head over heels in love with it!!!  Don't want to get my heart broken.  LOL  

New Contributor
Posts: 71
Registered: ‎08-27-2008
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Re: Appraisal really, really low...

Yup, i agree. It is very, very hard when you know its the right house, but again, it is what it is! I just got an email from the sellers agent (I was copied in, it was directed to my LO), she was all like, well, it came in lower than we expected (shows you they are in tune with what is really going on out there, I knew just from watching the market for the last 2 years it would be low)and she went on to say that given the sellers contributions are so high, we will just have to wait and see. Can you say textbook play! Probably page 77 of the "how to get them to pay more book", well, we are not biting....I will not pay more, but I am having my LO work up a new GFE with no buy down and only what it takes to make it happen with us only giving the 3.5% down, thats it, bottom line! I will go back with the appraisal price and them only paying the new amount, vs. the 6% in the orig. offer.
Valued Member
Posts: 66
Registered: ‎01-14-2009
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Re: Appraisal really, really low...

I would really caution people from relying on Zillow too much.  The proprietary algorithms that Zillow and other sites like cyberhomes use are built based on historic data and trends over time.  Since the current housing crisis presents so many unknowns, Zestimates and other online tools are even more of a shot in the dark then they usually are.
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