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Helpppp!! Appraisal came back low!

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Valued Member

Helpppp!! Appraisal came back low!

The home I am trying to purchase was listed at 189000. Sat on the marketer for over 4 months and after a open house ended up with multiple offers.

The home itself needs a lot of cosmetic work because it was being used as a investment property. Paint, new carpet, stove doesn’t work, holes in wAlls. Other than that it is very nice.

Seller was offering concessions for those updates.

I put my bid in at 193000Nd seller pay 3 percent closing. Asked for no updates only closing credit. They accepted. FHA Appraisal came in at 190000. Now they are suggesting I take 3000 off the closing credit to make up the difference.

Advice please!! I feel as though I made it clear from the beginning that I would need 3 percent closing as I don’t have the extra cash wich is why I ddnt ask them to fix anything in the home even though it was on the table.

Do deals fall through because of this?
Message 1 of 18
17 REPLIES 17
Contributor

Re: Helpppp!! Appraisal came back low!

No I would definitely do an addendum & say look this is whats its worth & put in another offer for 190k in the addendum. I wouldn’t personally buy a house for more than it’s appraised for. You can also do another appraisal or the sellers can.
Message 2 of 18
Valued Member

Re: Helpppp!! Appraisal came back low!

They are willing to lower the price but want to take away 3000 in concessions to cover the difference.
Message 3 of 18
New Contributor

Re: Helpppp!! Appraisal came back low!

That appraisal sticks with the property for 6 months I believe so they won’t get more then 190k I would stay strong at 190 with 3k closing or 187k bottom line.
Message 4 of 18
Frequent Contributor

Re: Helpppp!! Appraisal came back low!

I second this. If it did not appraise and you can't come in with the 3k I would hold firm on the $187. It puts it back on them to determine if they want to go through this whole process all over again with someone else. Yes, it is possible you may lose the house, but hopefully you get the house and a 3k reduction in price!




Transunion - 729 Experion - 722 Equifax - 727 Goal: 800 Across the Board
Message 5 of 18
Valued Contributor

Re: Helpppp!! Appraisal came back low!

Do you know if the appraisal requires any repairs?

One thing to remember here. The seller is not likely to want to relist the home & wait for another offer to come in & then wait for another 30 days +/- for the new buyer's loan to close.

It's not worth $3,000. Don't let the seller play on your emotions.

 

Here are a couple of solutions.

1) Asking the agents to kick in $1,500 each to make up the $3,000.00.

2) Can you get a gift from a family member for the 3K?

3) Do you have a 401k or other retirement account that you could pull the 3K from?

If none of these options are viable for you then your only option is to reduce the sales price to $190,000 with the seller paying your closing costs.

 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
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Message 6 of 18
Valued Member

Re: Helpppp!! Appraisal came back low!

No repairs from appraisal
Message 7 of 18
Valued Member

Re: Helpppp!! Appraisal came back low!

What’s happens if they do not respond to new offer or if they say no?? Is there a time limit on us coming to a agreement?
Message 8 of 18
Valued Contributor

Re: Helpppp!! Appraisal came back low!

ok that's good news. That's one less thing that you have to ask the seller for.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 9 of 18
Contributor

Re: Helpppp!! Appraisal came back low!

Nope. I would not do it. Lower the price 3k more than. Theyre being ridiculous. Theyre other houses out there.. so you can easily walk.. id have your agent tell them you will be exploring other options.
Message 10 of 18
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