low appraisal

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Viewing 11 posts - 1 through 11 (of 11 total)
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  • #15960
    mystiedawn
    Participant

    Hey all…
    So, my appraisal came in about 25k lower than the purchase price. Knew the house was a bit overpriced at offer, but wanted to give full price offer so they’d consider it (had issues with people not wanting to work with naca and/or take our offer). Didn’t think the appraisal would come in so low, however. Have been told by our realtor that the sellers will not accept the appraised value, in fact they have already put our house back on the market (which I’m wondering is even legal considering we are still technically in Contract). My question is, what happens next. My file just says that the appraisal is in. My MC is not easy to contact and is often not very helpful. Does anyone know what happens next?

    #15967
    msgreene1973
    Participant

    At this stage you should be working with your processor. Send them an email asking for a copy of the appraisal. Now if the appraisal came in low and you seller doesn’t want to negotiate on the price then you have a major problem.

    #15978
    mystiedawn
    Participant

    Looks like I do. If they won’t negotiate then I guess it’s canceled. Anyone know how long it’ll take for everything to clear out so I can start all over again?

    #15984
    TTrumble
    Member

    Hello mystiedawn,

    You can challenge the appraisal if you feel it is lower than the house is actually worth, but from the way you are describing the situation, the appraisal is probably accurate. Technically, the seller is probably in violation of the contract, but if he put the house back on the market that quickly, that means he probably already knows he’s asking for more than it’s worth and is moving on quickly, knowing you aren’t going to fall for his sucker deal.

    Based on what you have written, my guess is that you’re probably best moving on as well. You can start looking for another property right away. Sorry you hit such an ugly bump in the road.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #15985
    mystiedawn
    Participant

    Thanks Tim for your input. Apparently the appraiser told my agent that when there’s such a discrepancy, naca will request a 2nd appraisal. Can you verify that?

    #15994
    HopefulMike
    Participant

    This is terrible! I hope you can get a 2nd opinion on the appraisal! I can’t imagine that you’d submit an offer on a home so grossly overpriced, so it’s probably worth it to challenge for a 2nd opinion. Stop the seller in their tracks too! They can’t simply move on without a chance at any communication… I’ll be looking out here to see what happens. Thanks for sharing.

    #16023
    mystiedawn
    Participant

    I talked to my agent about asking for a 2nd appraisal. He notes that there isn’t anything on the market that will boost up the appraisal amount. Looks like it will be up to the sellers to lower the price or cancel!

    #16026
    Determined
    Participant

    Are you in a high demand area? I wonder why they would just put it back on the market, who wants to buy a home and be instantly 25k upside down

    #16027
    Kristopher Fraley
    Participant

    If I were you I wouldn’t be wasting my time putting offers on houses when you know beforehand that the appraisal will not come back ok. The naca process can already be tedious enough and this is just adding extra stress, something you can somewhat control.

    #16034
    mystiedawn
    Participant

    Hindsight is always 20/20 isn’t it! Yes, it’s a high demand area, houses are pending same week they come on the market and prices are going up! However, none of this helps my case since nothing is selling higher in my direct area, only a city or two over! Waiting to see what the sellers decision is…

    #16039
    TTrumble
    Member

    Hello mystiedawn,

    A second appraisal is actually what I was referring to when I wrote that you could challenge it. Please keep us updated on how things proceed!

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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