All Forum Posts by: Hady Farag

Hey BP fam!

Appreciate each and everyone’s advice/insight on my situation. We went ahead and switched lenders and ordered a new appraisal. Im currently working with the seller and negotiating the sale price. Will keep everyone posted!

@Eric James - I’ll keep everyone updated. Let’s see what transpires in this upcoming week. If the seller is smart and realistic he’ll realize that in light of this appraisal the property in no way can be sold at the original price point

@Joe S. - Theres a difference between what you said and what I’m clearly trying to accomplish, which is obtaining an accurate appraisal. If you were to have read through my responses you would see that plan is already in the works my man! But any advice you care to share would be greatly appreciated

@Joseph Guzzardi Jr

I’m not sure how something like that would look but we did explicitly add to the contract that “The buyer will contribute a maximum amount of $10000 to cover any potential underappraisal”. Not sure if that’s somewhat considered an appraisal contingency.

@Syed H.

That’s great to know Syed appreciate your insight. After reading everyones post and spending some time looking at the report and comps the appraisal makes sense to an extent. I also agree that the original price point I agreed with the seller was steep which is why In light of this appraisal I intend on renegotiation with the seller. Can you offer some advice on how to approach this situation?

Also, I see you’re from NJ so I’ll share a bit more info on the property. It’s actually located on New St. right behind university hospital - walking distance to the Norfolk light rail station. So it’s location isn’t as bad compared to where the comps are, most of them are at fairmount.

@Joseph Guzzardi Jr

No worries, I know exactly what you mean. I came across a couple of 2 fam + bonus in NJ. This is actually a legal 3 family and has a partially finished basement with a bathroom and a room.

@Michael P. About 10k/yr

@Linda S.

Hi Linda. Thank you for the advice. I’ll definitely get the seller involved in this and get this renegotiated.

Regarding the comparables, there are a few points I plan to bring up that don’t match up to what the property I’m purchasing has;

• None of the comprables have driveways and mine has a 3 car driveway as listed on the appraisal however, he didn’t adjust for this.

• The basement of the property has partially finished basement with a bathroom and a room. None of the properties in the comps have that and he didn’t adjust for this.

• There’s an “energy efficient items” section he didn’t fill out for the property. There are solar panels on the property he didn’t account for.

• The property has a patio and the comps he sent seems to not have any since they all have “None Noted” in that section.

@Justin Hilgart Hey Justin thank you for responding! Looks like it worked out in your favor since you were able to buy the property 35k below contract. Was the seller aware of the first appraisal the came in? If so, how did that conversation go?

@Russell Brazil

Unfortunately this is the case. I do have the downpayment for conventional but I wanted to be more liquid incase anything were to happen. I may need to switch to conventional if this is the case but I’m unsure how that process would look like at the moment. I’m waiting to hear back from the challenge.