08-21-2012 07:44 AM
We have been looking for this house for MONTHS we find THE ONE put in a offer with 2 other bidders and we win the house well the fun doesn't stop there. We have a successful inspection and then the appraisal comes in at 12K under the winning bid price. So we have a dual realtor the sellers realtor is also helping us and our loan officer helps us with the details. She said more than once "NO way that house is selling for 210k and the appraiser did not even use 2 valid comps- I'm disputing this" meanwhile we know the sellers are crunched for time because they are purchasing a log cabin that they had to fight over and won and they have 30 days to sell their house but it failed appraisal so now what! The realtor thinks she is going to be able to change something with this dispute and she is not, our loan officer is quite confident in this this.
Here is another kicker she mentions "maybe you guys can go conv. loan with 5% down instead of FHA (which we are going with) we said no we want fha but we do not want to tell her the details on why. The reason is we had a foreclosure 4 years ago and only qualify with fha. So she actually thinks we will drop out of our loan that is almost fully underwritten AND pay for another appraisal?!!?! See in the beginning she told us way too many details about the sellers situation like how they already have an offer on this log cabin, how they had to fight for it, how the log cabin sellers said they must have their house sold in 30 days. ect ect ect So assume this means they are crunched for time but now the realtor is saying all this stuff and then at end of the conversation she says "they'll just relist it, no way its selling for $210k" we are well aware they need the equitity in thisd house to buy the new one.....
So now what???? The appraisal dispute will be unsuccessful the house is supposably only worth 210k and we have an offer in at 222,227k we will not put that much cash down. What other reason can we tell her that we absolutely are not willing to use conv.? We do not want her knowing about the foreclosure.
08-21-2012 08:50 AM
Honestly, I would not give her any other reasons. She works for you, if she wants the commission on selling this home to you, then she will fight hard for you. Keep your head up and keep praying. Things will work out and if this doesn't work out, then it only means God has something even more amazing for you. But I believe it will all work out. If they don't win the appraisal dispute, they can relist it, but the appraisal still stick with the home for a few months, so they would have to find someone with more cash to put down. It sounds easier than what it truly is. Hang in there.
08-21-2012 08:53 AM - edited 08-21-2012 09:00 AM
So now what???? The appraisal dispute will be unsuccessful the house is supposably only worth 210k and we have an offer in at 222,227k we will not put that much cash down.
What other reason can we tell her that we absolutely are not willing to use conv.?
You don't need to tell her anything, and if she asks again, personally, I'd tell her you already said no and you won't be discussing it again, and mean it.
When we purchased the last time, the sellers, who were also the realtors (it was an investment grp) had the gall to ask us to go USDA on a conf call in front of our LO (who is a close family friend and with whom we'd carefully chosen what mortg product we were going with) and everyone else,as well as prequalify with their mortgage broker. Never mind the fact that our town, and the house, didn't qualify, we shut her down very quickly and for the most part politely. And she was informed that if she did it again, overstepped, we'd walk from the deal. And if we walked, she wasn't getting her commission for some time. That worked for the most part, though, we did have to warn her a few other times over similiar stuff.
Also personally, I wouldn't be disputing the appraisal, I'd be thrilled, but that's me. I'd come back and ask they drop the price. They refuse, I'd walk and not look back. The appraisal sticks for 6 mos anyway. I know how one can become attached to a house and that sounds cold, but truly, it's not the only one. There's more out there, and in this market overpaying is something I'd want to avoid at all costs. But that's just me. These are your choices and you and your family will have to live with them, so really, you need to figure out what's best for you. And only you can do that.
I know this might not be as helpful as you'd like, but good luck. Thoughts are with you.
08-21-2012 09:11 AM
well if worse comes to worse, and the sellers are really crunched for time, they need to come down on the price.. which would be great for you.
08-21-2012 09:42 AM
wow! You all are so great! I appreciate the positive feedback, it was very much needed. My husband and I are more stressed out than we have been, EVER!
Now we were considering asking for them to drop the price to the $210k right away but then we thought we should wait and act as though we are willing to do EVERYTHING it takes to purchase this house and after the dispute, she asks for a loan change, and then asks for cash out of pocket, we tell her we would like the sellers to lower their purchase price. This way she does not have so much time to try and contact the other offers or can she even do this with a signed purchase agreement between both parties? I honestly think that realtor told us told too many details about the sellers and situation they are in with needing to sell in order to purchase the log cabin. So now she is trying to back track and even mentioned re-listing after saying 3-4 times that this house will not sell for 210k... So I guess we just wait? wait for dispute and then wait for them to try and negotiate? I feel this alot to do with the realtor who is also the broker/owner of the company. She has mentioned a few times about upholding her "reputation" with the homes she sells. I know she hasn't mentioned one time to the sellers of the possibility of them lowering the purchase price....
08-21-2012 10:38 AM
Personally I think you hold all of the cards in this deal right now but you have to be willing to lose the property. If it were me I would go to the realtor now and tell them the seller needs to lower to 210 or you are walking. Sitting back and waiting on someone who does not seem to have YOUR best interest at heart would not sit well with me. Just my 2 cents.
08-21-2012 11:25 AM
I know you are stressed. I just went through a very similar situation. Ours appraisal came in $32,000 lower then the listed price before they dropped it and then still appraised $20k lower.
Aloo of those options were presented to me, but the bottom line was I was not willing to start out under water. If you pay more. You are paying for more than that beautiful home you love so much is worth. You are holding wayyyyy more cards than you think.
Are they willing to start the whole process over again with someone else? The price would still be the same, so they may as well drop it to accomodate you. Right?
I sure hope you get the house at fair market value.
08-21-2012 01:13 PM
Does it always mean the house isn't worth the appraised value? I mean the realtor is upset because the appraiser failed to use a comp that she sold that appraised for $218,000 with same updates,sq,ect as the one we have. So she was expecting this one to come in at $220,000 at the least. It doesn't help the matter that a short sale sold on the same street just last month with 500 more sq ft for $195,000! Yes it needed paint,a good cleaning, and didn't have granit countertops but still ya know? This is the first house we found with everything we want thats within our price range.... But we are contimplating going to the realtor in a couple days and telling her we walk if they do not lower the price. This is hard for the sellers I am sure because the house was listed for 4 days with multiple offers. I just cannot imagine waiting another 1-2 weeks while she "attempts" to dispute the appraisal just to have the same outcome. Its really stressing us out!
08-21-2012 03:31 PM
If you have five different appraisers and they each complete an appraisal you are likely to end up with five different values, even if they all use the same data.
However, most of those appraisal values will be within a close range of values given the same data set. Where they might differ is if the appraiser truly pulled out comps that are not actually comparable to the subject property. Sometimes that happens - especially if the appraiser is an out of area appraiser. It is tough to fight the appraisal values now, even if the appraiser made a mistake. The AMC's (Appraisal Management Companies) were put in place to keep a distance between the lender and the appraiser so the lender didn't influence the appraisal value. As a consequence, getting errors corrected on an appraisal is extremely difficult - even with complete documentation to the error. In short, I would say your agent is tilting at windmills.
That's a good thing for you. You are the buyer. Why would you want to increase the appraised value? Just go back in and renegotiate the price to the apprised value.
As the others pointed out, you hold the cards. The seller needs your deal to close. If they are short funds on their new purchase, that is their problem for not building in enough of a reserve. The appraisal sticks with the property for 6 months on a FHA loan. That's why the sellers agent tried to get you to switch your loan to conventional. BTW, she is behaving as a seller's agent and not as a dual agent at all. Be careful.
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