Negotiating Price After Appraisal

[Zachary D.]

Hello,

I recently received an appraisal that was satisfactory to the lender (85k home price v 88k appraisal price). There are some expected repairs to satisfy the FHA loan criteria.

We are in good shape to finish this out but I asked my realtor if we should go in and try to ask for a reduced price. He suggested this was not possible since the appraisal came back consistent with the price of the home. I am under the impression that FHA required repairs, even if the appraisal amount exceeds the price per the loan, can be negotiated with seller.

I believe my realtor benefits from the higher price of the sale and is thus not being earnest with me. Any advice is appreciated.

[Brad Hammond]

Hi @Zachary D., I believe all FHA required repairs need to be complete before the transaction closes. Double-check me on that though, I don't do a lot of FHA loans. As far as what your agent says, that is correct. If the appraisal comes back at the agreed price, it is too late to ask for a price reduction. Your agent is might make $30 off the price difference, but that should not influence them at all. Not trusting your agent 100% is a bit of a red flag, if you don't feel like they have your back at all times, you should find a new one. I know it is a little late for that now though.