First time home seller: I sold more than what is appraised for....

[Mr_Tomahawk]

...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...."

[munkey]

Originally Posted by Mr_Tomahawk

I think they are going FHA, fwiw.

Then they are coming in with 3.5% down and borrowing 95% of the appraised value..

[Mr_Tomahawk]

****.

[Brock]

Originally Posted by Mr_Tomahawk

Yes....she told us not to worry about it.

We had it appraised a couple of years ago prior to some interior/exterior updates. We asked abut $40k over that appraised value. Got an offer within 2 days of putting it up for sale...

I know it will appraise more than what it did a couple years ago...but it won't be a $40k jump....

You're paying her points to do all the worrying.

[munkey]

Check your contract...When ever I have a buyer using FHA I make it a contingency....good luck!!

[Mr_Tomahawk]

Make what a contingency?

[TribalElder]

Congrats, now flee that failing state and buy something nice in a non bankrupt area lolz

[ptlyon]

It is what it is. Right now we have a ton of out of town construction workers that will be here for approximately 3-5 years. They don't want to live in 5th wheels with our climate so they look to renting and even buying which is driving the prices just plain nuts at the moment. Good ol supply and demand.

[displacedinMN]

The market drives the value.

[lewdog]

We bought a house for higher than it's appraised value. We simply covered the $5k difference because we wanted the house and we had a conventional loan even though we were first time home buyers. Not sure if an FHA loan changes anything, but it's likely they won't have the funds to bridge the gap between the appraised value and the market value....unless I am missing something?

[TribalElder]

Originally Posted by lewdog

We bought a house for higher than it's appraised value. We simply covered the $5k difference because we wanted the house and we had a conventional loan even though we were first time home buyers. Not sure if an FHA loan changes anything, but it's likely they won't have the funds to bridge the gap between the appraised value and the market value....unless I am missing something?

FHA loan has stricter requirements on values I believe

Also people only need 3% down whereas a conventional loan requires 20 I believe.

Also,FHA loan users have to pay PMI points for the life of the loan now. It used to only be 60 months minimum and 20% equity in the appraised / purchased value.

PMI is the scam they use to allow others to put 3% down. It supposedly helps when people default.

I only put down 10% so I got hit with PMI but I'm already past the equity requirement which is when I found out about the 60month minimum.

I'm not a real estate broker or involved in the biz but I've bought 3 houses and sold 2 so there is that.

Hopefully things work out for you and you can sell in all honesty. Best of luck, where you going to move to?

[Mr_Tomahawk]

Thanks!

We are moving about 2 miles down the road (hopefully).

Our kids will be 1 block from their school and have more neighborhood amenities.

[lewdog]

Originally Posted by TribalElder

FHA loan has stricter requirements on values I believe

Also people only need 3% down whereas a conventional loan requires 20 I believe.

Also,FHA loan users have to pay PMI points for the life of the loan now. It used to only be 60 months minimum and 20% equity in the appraised / purchased value.

PMI is the scam they use to allow others to put 3% down. It supposedly helps when people default.

I only put down 10% so I got hit with PMI but I'm already past the equity requirement which is when I found out about the 60month minimum.

I'm not a real estate broker or involved in the biz but I've bought 3 houses and sold 2 so there is that.

Hopefully things work out for you and you can sell in all honesty. Best of luck, where you going to move to?

We went conventional but didn't do 20% down. We put down about 13% and bought out the PMI from the start. Saves a ton of money when you do that and most people don't realize it can be done.

[TribalElder]

Originally Posted by lewdog

We went conventional but didn't do 20% down. We put down about 13% and bought out the PMI from the start. Saves a ton of money when you do that and most people don't realize it can be done.

That's great. I get advertisements from mortgage hustlers telling me I can eliminate my PMI by moving my loan to them. But at 3% fixed for 15 years why would I move to a higher rate and longer term

I called one of them the other day just to troll them about it.

[Donger]

I had this happen once. We offered about $15,000 more than the appraisal value. I told the seller I was going to walk and he dropped the price by $10,000 and I ate the $5,000. We wanted the home so...

[lewdog]

Originally Posted by Donger

I had this happen once. We offered about $15,000 more than the appraisal value. I told the seller I was going to walk and he dropped the price by $10,000 and I ate the $5,000. We wanted the home so...

Eerily similar to our situation. Our offer was initially $15k more until the house appraised for less than our offer. We returned an offer for $5k more than the appraisal value and stated if was our final offer. They accepted.