Happy New year!!!!
I was preapproved thru NFCU for 200,000 in October - Spent the last 3 months looking, and finally put in a firm offer on a totally remodeled cozy dream home! Going thru inspection, PASSED! BUT The appraisal came in almost 32,000 less that the offer I had placed (they were asking $169,900, but I offered and they accepted $172,000 with seller paying 3000 to closing costs. Now we are appealing the appraisal and the seller has decided to get his own appraisal in the meantime. They offered to lower the price to $150,000 which is better for me in the long run but the bank will only finance the 140,000 amount as of right now. I understand the appeal can take up to 10 days which puts me right to my anticipated close date!
I am supposed to close Jan 19th! I can literally scrape up the addl $5,000, ( I have already given 5,000 ernest deposit) and of course Im pretty sure I will have to play closing, but I dont want to lose this house over 5,000.00! Houses in my area (South florida) are hard to come by and I am totally in love with this home and it is the area I want to be in!
Anyone experience such a drastic apprasial amount? I would gladly pay the $172,000 for it and I dont think the appraisal was fair to be honest. Its hard to establish comps in the area since the house has been totally upgraded from top to bottom. Since I have a verbal offer to lower to 150,000, what happens if the sellers appraisal comes in higher? Will the appeal to the first apprails be insulting? I am already out of pocket for the appraisal as well as the inspection and would HATE to lose this home I have worked so hard on buying.
Thoughts, advice and suggestions welcome!
Thanks for your input!
This is house #4 which I have submitted an offer - My biggest concern is the sellers appraisal - Do you believe it will come in higher than the banks oroginal appraisal and if so, would the bank reconsider the 2nd appraisal if it should come in higher? I really only need it to come up 5,000 to save me from coming out of pocket with the balance. Im also wondering if and why the 2 appraisals wouldnt be apples to apples? I know the seller is disappointed as well, and I know they didnt put 100K into upgrades and because it is public records, I know what they originally paid for the house. I still think the 140,000 is a fair offer and I know the bank is just looking out for my best interest as well as theirs.
Hard not to fall in love when it is such a dream of mine. Just has me on edge because if I have to walk, I am out $1000.00 and I also took a hardship from my 401k which Im not sure if this contract falls thru what will happen to that money? I havent mentioned anything to my plan administrator in fear they will pull the monies needed back from me if the sale doesnt go thru. The other issue is that my preapproval is only good until the 15th of january and I will have to go thru all of this all over again.
Well, I dont want to lose anything - as I stated I am pulling a hardship from my 401k so losing everything would devistate me.
I currently have 5000 earnst and 1000 for appraisal and inspection. If the seller wont agree to come down, I would get my ernst money back since I am unable to get financing (contract contigent on financing and appraisal) for the full asking price of 150,000. I was informed that my closing costs would be about 4,000 ( I asked when I got approved) but now the GFE looks to be about 7,000 out of pocket which is higher than originally stated and I wasnt expecting that to be so high.
In a perfect world, the outcome will be that the seller reduces price to 145,000 (he said the lowest they can accept is 150,000) and I can proceed and move towards closing at the appraised amount.
Fingers crossed! I am trying not to stress and I wont walk away unless the sellers appraisal comes in far above the original appraisal. It could also come in lower??
Seller produced appraised value means nothing. Only a bank ordered appraisal matters.
Sounds like somebody did not do their homework when that house was listed. Since you seem to love the house so much, I would say that $5k out of your pocket to get you into that house is worth it ... but what about the lender and mortgage?
I have a buyer right now who ordered a house from us [a national builder] while he tries to sell his house. Six months after signing the purchase agreement, we are done with construction and the buyer still has not sold his house. Why? Because it is priced too high!
Get an 80/10/10 loan. It'll be a little expensive in the short term but if you really want the house go for it. Some lenders do a 85/15. You can explore both options.
I know how you are feeling at this moment - I am closing on my house this Friday.
I am a first time home buyer so I understand all of the emotions, but you really have to TRY to take the emotion out of it. The house I'm buying, I originally walked away from. The seller wasn't being reasonable, so I looked at other houses. I went back to this one after a month of looking at other places. Believe it or not, there are other houses Do not pay more for a house than it is worth. In the end, it is just a house.
Good luck and sending you good vibes!