appraisal

Has anyone experienced an appraisal from the bank coming in much lower than the accepted offer price?
is this normal? if so, that would be a deal breaker ..as long as it is written in the contract...right?

I've never gone through this, but IMO, if the bank's appraisal is significantly lower than what you're paying for the house, I would definitely say that is a big problem!

1. you're paying too much for it
2. you're in negative equity, not good!

What I would do at this point is go back to the seller with this appraisal and get the price lowered.

again, this is my opinion but the housing market has shifted and sellers are putting their homes on the market for what they could have gotten for it in 2005. the bottom line is that they are not worth as much, per your appraisal.

good luck!

with some banks, you can pay more for a more expensive appraisal, but usually that will only get you a few extra thousand.

If the appraisal is significantly lower than the purchase price, I would either have the sellers lower the price or not buy it.

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Posted by Meaghan729

with some banks, you can pay more for a more expensive appraisal, but usually that will only get you a few extra thousand.

If the appraisal is significantly lower than the purchase price, I would either have the sellers lower the price or not buy it.

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both ladies are right. if it's off by maybe $2-$3k that's one thing...but if you say 'significantly' lower by like $20k, I would definitely have your attorney fax a copy of the appraisal report to the seller's attorney and re-negotiate. If the seller chooses to, he can pay to have his own appraisal and if it comes in higher, you can see if your bank will take it. But if he's not willing to work with you at all, then you wiil need to walk away.

it's mostly likely a deal breaker b/c you will only be able to get a mortgage for the amount that the bank thinks the house is worth

you can still buy the house- but you will have to come up with cash for the difference

but if it's a huge difference- I would walk away

I'm an appraiser. If you have any questions, please feel free to FM me.