House appraised for $25k below my offer...what next?

Question

Hey bp...Im fairly new to real estate and am seeking a bit of input.

I am selling my primairy residence in Ca. and buying a primairy in Atlanta. I am currently in contract with a potential buyer for my Ca. property,  as well Im in contract in Atlanta for the home I wish to purchase. I was informed today that the property in Atlanta appraised for $250k and my offer to the seller was $275k. The loan agent told me that i can contest the appraisal and try again for a new appraisal with other comps.

Has anyone been in this position before? What are some other options that I have? Can I offer the seller $250 citing the appraisal? Not sure what to do here.

Kevin Polite · Answer

Your agent should have you sign off on an "Amendment to Sales Price" and lowering the price of the house to the appraised amount and send that to the seller along with the appraisal.

Did your agent review the comps in the area surrounding the property before making the offer? How many days on the market are the comps? How long was the house you want to buy on the market? Take a look at the comps on the appraisal and do they closely match the home you want to purchase. This is your first step. I've attempted to dispute an appraisal with limited success especially with the Dodd Frank rules in place. Appraisers hate to be questioned. Also, depends on your mortgage banker. If they are helpful then that goes a long way.

Good luck and let us know how it goes.

Brandon Carriere · Answer

Have your agent give the appraisal to the listing agent and request that they lower sales price to appraised value..   Thats always the first move by the buyer in this situation..   The seller can either accept it, reject it and cancel, or negotiate with you..  Thats a HUGE difference at that price point, so unless you can come out of pocket with some cash, or unless the seller is very desperate and in a hurry to sell, this could be a dead deal

Mary M. · Answer

The sellers may not have the info on what the appriasal said unless buyer shared it. Buyer should  discuss with their  agent and decide what to do.

Bill B. · Answer

The house I’m sitting in now was sold to me by  the realtor that owned it. I offered $215k, it appraised for $185k. Her option was to take $185k or find a cash buyer. I loved the home so I upped my offer to $190k and came up with an additional $5k out of pocket. I saved $25k.

The sellers realtors should be walking the seller through their options.

House appraised for $25k below my offer...what next?

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