Weymouth, MA · Member since 2014 · 16 posts · 2 votes
I bought a house to flip in Rockland Mass. I bought it for 200k and I put 110k into it bringing to 310k total. It was on the market for 380k and I accepted an offer for 385k, and they are putting down 20k. They bank apparaiasal came in at 325k. I'm horrified, and not sure what some options are. After the agents take their 5% and what ever any other taxes of fees involved, I would lose a good amount of money. There is a huge lack of comps in the area, slim to none. The inventory is super low. Does anyone have some ideas? Thanks for reading.
Lender · Los Angeles, CA · Member since 2015 · 127 posts · 82 votes
9y
You got an offer above asking price? Obviously that's a good indicator you were right about the value and a buyer (or buyers) agreed. But you also admit comps are hard to come by in this area, and that could continue to bite you if you lose this buyer and go with another and that new appraiser also comes in low. Instead of demanding the current buyer cover the difference that their lender won't with this appraised value, see if you can split some difference with them. Maybe $360,000 sales price if they really want the house badly enough and have the extra cash to spare. This is a shame, but you may get caught in a long cycle of new buyer/low appraisal purgatory. Outside of an all cash buyer, this is all part of the risk if your buyer needs a loan. Unless you have a solid backup buyer (thinking you might because you got over asking price) and you know that new buyer would pay the difference in appraised value...then do everything you can to work it out with current buyer and move on.
Realtor · Charlotte, NC · Member since 2014 · 935 posts · 467 votes
9y
Have your agent develop some comps to give to the appraiser, Hire an appraiser for a second opinion, offer to carry a note for the difference in cash the buyer is willing to make up (provided his primary Lendor will approve). If the appraisal was FHA you are stuck with it for 6 months, better to go conventional the next time.