Quote:
Originally Posted by Mr_Tomahawk
(Post 11604447)
...am I ****ed?
To be fair...this was our first time selling a house. We just went through the whole inspection process with minor fixes.
And then we got our house appraised today....shit. I am 99.9% sure that we are asking $10k-$20k more than what it will appraise for.
Am I ****ed when the appraiser comes back with a significantly lower appraisal than what we are asking?
I have a feeling that most of the answers will be. "It depends on how bad the buyer wants the house...."
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Depends on what type of transaction this will be. I own several properties and have purchased and sold many houses and this has happened to me a few times. Most recently last year.
IF cash transaction - you're fine, providing the seller wants to pay a purchase price above appraised value. You really don't even need an appraisal if the buyer is paying cash for the house...However, if the buyer is going through a bank (like most) and will take on a mortgage, you will have issues because the bank will only finance an amount based on appraised value of home. Deal is if you get another appraisal, by rule the banks will always take the lower amount. So, a few scenarios will occur - Could be that you hold firm on price and buyer wants it bad enough that they're willing to put more $ down in order to make the numbers work. (Don't know why they would but you never know). Or you will have to drop your price, and they stick with the same down payment, to get numbers down to where they will work for the financing. Or, it could also be a matter of give and take on both sides whereby you come down a bit on price and the buyer puts more $$$ down in order to get to the approved amount borrowed.
There sometimes are additional factors to consider, like repairs needed and factoring them in or out of the deal, but the above mentioned scenarios are generally the way these things go. Hope that helped.
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