Worried about potential appraisal

[Clark Kahawaii]

Hey everyone,

I am a new REI and I am on the verge of being under contract for a duplex here in the Dallas/Fort Worth Area. I offered $285,000 with a 3.5% FHA as I will be house hacking it. The only issue I have is that there are no comps in the area and I'm worried about the appraisal coming in too low. The seller at the moment seems to be pretty firm on the price, however we will still try and negotiate if the appraisal comes in low.

BUT, if they will not lower the price to help make the deal happen, I will have to make up the difference in cash, which would be a big problem for me at the moment. If it were about $10,000 low, I would figure out a way to make it happen. But if it were say $30,000 low, I would have to back out and lose my $1,500 in option money.

Has anyone had a similar issue? If so, what were the ways you remedied the situation? Is there a way to push an appraisal the way you want it to go?

Are there any different angles I can come in at? I thought maybe I could lower my option money to $500 because it would be easier to walk away were a bad appraisal to come in. But the inspection and appraisal cost about $500 each on their own.

Thanks in advance for your insight, and wish you all luck in finding deals!

[Russell Brazil]

If it comes in low, just have your agent reinforce that the seller is stuck with this price for all fha buyers til the appraisal expires. I forget if it is 4 or 6 months that it attatches to the property.