your voice is so reassuring and relaxing I think you could sell anything! Also, the info you present is often stressful when someone is trying to understand the real estate process...and you make it easy to listen to and understand. Thanks!
I just got the appraisal for a home I'm purchasing and it was low and my heart sank. Have to talk to real estate agent and my lender. I can't afford to make up the difference. Right now I'm sweating bullets.
Ah, that's such a bummer! Try to talk with your agents about some of the ideas in this video. Take a deep breath, take a walk, and start setting up a calm gameplan.
Im currently waiting on an appraisal for a 260k house. It needs a lot of work done. We asked the sellet to help with closing costs, she only wants to give $2,000 which is almost nothing but we said ok because we really want the house. If the apraisal comes back low and she doesnt want to lower the prince, we are walking out of the deal. I cant deal with greety sellers. So im hoping for the best
Here in Seattle, homes are selling $100K over asking on a mediocre house. It is crazy right now, but, also on the market are a lot of homes requesting backup offers. My guess is that gap in the appraisal is waking some people up and they can't finish the loan.
I had an appraisal on a home that asking price was 675k and the hone appraised for 600k. The seller didn't want to budge on the price. Ironically, the house went back on the market twice after my offer. These sellers are crazy with these inflated prices.
Hi I'm a buyer. the house I wanted it didn't appraise. The Seller wont negotiate because they believe their house is more than the appraise. They asking us to look for another appraiser from a different lender. My question is Can I look for another appraiser from a different lender?
The house we are in contract for came in at 45k less than what it was listed for this past Friday. We are trying to negotiate a new price but the seller is in disbelief and won't budge too much off his price ( he did drop 10k ) so we are walking. We did offer 15k over the appraisal as we liked the house and didn't want to have to start all over again but I think that's best.
I don't think you can judge the appraisal as being low until you read the appraisal report. The agent may have the wrong square footage for the home, there may be a cracked foundation or some other item that was not disclosed to the buyer.
I just have to save for the down payment of 3.5% closing costs and have some reserves, so I'll need around $10,000 just to be on the safe side. I'm in the process of starting a print on demand shirt business with my dad and I'm hoping I can get some funds quick to start investing.
@@WinTheHouseYouLove Yeah he was explaining that to me how he would be allowed to do that if it came down to needing to. That would most definitely be the smartest decision to make.
This is great!!! I’m an LO and Listing agent is trying to come at me because appraisal came low… which has nothing to do with me but this gives me a better insight. It’s fha so they would be out of luck for a second appraisal
But I just spent $550 for an appraisal and I can’t shell out another $550 for another appraisal. I don’t have that kind of money. It’s either this house or no house.
Ours came in at $49,000 instead of 52,800 but the seller came down to $49,000. But the appraiser made a comment about the roof needing to be replaced. So now we may have to get the roof fixed first. Waiting to hear what we’re going to do. So frustrated. We were supposed to close in 12 days.
What I don't understand is that if the bank is solely worried about making sure their money is safe then why doesn't an appraisal have to meet the borrowed price. If I offer 275k on a home and it appraises at 265k but the bank is only giving me 220k...why do they care?
The appraiser came back 27k under the selling price. We negotiated to split the difference. Now the bank wants repairs and more inspections. The appraiser took a comparable 30 MILES AWAY. A house in the middle of no where. The appraiser has no idea what he's doing. This is an amazing house at a really good price compared to what else is on the market here.
I am 20 and turning 21 in April. I'm hoping to get my first property before I turn 21. I'm looking at a 4plex currently in my area that's listed for $79,000 which is pretty low where I'm at. I ran some numbers and it meets the 1% rule with a 1.75% which is ideal for my area. I can rent each unit for a minimum of $450 a month.
In this housing market, sellers really have no reason to come down on the price or meet you halfway when they are getting 20-30% over asking price consistently. Wish it was 2008 so I could scoop up some cheap real estate lol
I'm in upstate NY and all of the homes that are currently inflated 50-100k over appraisal are not selling. Some of them have been on the market for almost 2 years. Now with the interest rates climbing, it's time for sellers and realtors to have a reality check.
But thanks for all the knowledge you have on your channel. It's the best channel I've came across that gets to the point and has great information bro. Maybe you can evaluate some properties I find to help me see if they will be good deals. Thanks man.
@@WinTheHouseYouLove Yeah please do that would be great man. I havent watched too many video on rental evaluation. I know you would go in depth with it forsure.
@@WinTheHouseYouLove Thank you. Got the results today. My broker escalated the situation. The lender found the appraisal faulty and have ordered a new appraisal.
In my neighborhood, a house listed for 359, contract at 344 with a backup of 350, and the damn appraiser deflated the deal to 330 🤬 I’m selling a similar floor plan, listing at 350, scared of the appraiser 🙁
The mortgage is around $450. I can rent for more than $450 but I am just saying $450 to give myself some cushion. I currently have a 746 credit score it was 756 before I got my discover but it will be going up soon. I will have 2 years of tax returns by the end of February, and I have a good DTI ratio with only my car loan really. I am going to apply for an FHA loan after I get my tax returns for the 4plex.
The appraisal has to be request by a lender and a buyer normally does not want to spend $500 on an appraisal if they don't know if they'll even be able to get their offer accepted
Watching this in October 2021 (hot seller’s market) where all the potential buyers on my home made offers 10-20k above the list price. Appraiser came today and I came to this video curious about the answer to appraisals that come in lower than the offer. It will be interesting to see what the outcome will be for my home. 🙂 But it was good to learn the option of the buyer doing less of a down payment to make up the price. Hadn’t thought of that. My realtor is handling it all but good to know all of the options nonetheless. Thank you!
Hello my name is Neil, I’ve watch your RUclips video and I was just wondering if you can answer some questions for me. I get the feeling that my realtor broker/ agent is just trying to get a sale and don’t care about the repercussions we may face. I hope you can give me some advice , just don’t want to get taken advantage of and I’m not getting a straight answer from anyone. We signed a contract using a VA loan - unaware and was not explained by our realtor , there was an appraisal waiver written into the contract. We are at the point where our lender has requested that both buyer and seller sign the VA Addendum to Contract in order for the appraisal to be released. The seller refuses to sign saying it will counter the terms in the initial contract. My questions are: 1. Can an appraisal be wavier in an initial purchase contract for VA loans? 2. Will this VA Addendum to Contract supersede the initial contract? 3. What happens if the seller does not sign? 4. How do I retain my earnest money if the loan doesn’t get approved? I would greatly appreciate your help US MARINE 1999-2003 served in the Iraq campaign Neil
Great questions! 1. Yes, but the VA Escape Clause will supersede it 2. Yes, the VA Addendum will supersede the initial contract. This is because it states "notwithstanding any other provisions of this contract". There is no way around this on a VA loan. You can choose to pay more (e.g. "purchaser shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established"). However, with a VA loan it is impossible to be obligated to via the purchase contract. 3. If the seller does not sign, you cannot get a VA loan. You could explore getting an Conventional loan instead 4. You'll need to read through your contract since all contracts are different. Most contracts have a financing contingency section that says if you can't get approved for a loan, you will get your earnest money back
Did you ever see a situation where the appraisal came the same when you bought it a year ago . After 100k on remodeling, including a 37’x 25’ garage was made,. In FL the market is high than a year ago. Another question, Are all the appraisal companies are accurate?
Wait so you can use the money from your down payment on the house towards what you bid over? I just learned that we have to make up from our own cash out of pocket what we offer and It makes me nervous bc we dont have much extra cash to bid! We have enough for closing costs and extra money to keep in our savings thats it. Also our down payment is only $6k. Please help still confused on this. Thanks for your videos though! They really have been helping me!
*The home we are hoping to buy appraised almost $30,000 under. Smh. We strongly trust the Appraisal and don't believe that the house is worth $30K more. Negotiating under is going to be a mess we are willing to make.*
Hi Kyle. Nice video, very informative. Is there a way to find out if a property has had an appraisal in the last 6 months OTHER than asking the seller? Thanks
Hey papoworld, thanks for reaching out. Sorry to hear that your appraisal came in 10k low, that can definitely be frustrating. It's great to hear that the seller has been professional and fair so far. In situations like this, it's important to have open communication with the seller and your mortgage lender. They may be able to work with you to find a solution that works for everyone.
Hey papoworld, thanks for reaching out. Sorry to hear that your appraisal came in 10k low, that can definitely be frustrating. It's great to hear that the seller has been professional and fair so far. In situations like this, it's important to have open communication with the seller and your mortgage lender. They may be able to work with you to find a solution that works for everyone.
Hey papoworld, thanks for reaching out. Sorry to hear that your appraisal came in 10k low, that can definitely be frustrating. It's great to hear that the seller has been professional and fair so far. In situations like this, it's important to have open communication with the seller and your mortgage lender. They may be able to work with you to find a solution that works for everyone.
Just received the appraisal for a home I'm supposed to purchase and it came back extremely low.. what in the world?! I can't afford the difference!I feel it's time to walk away... more like run?! Lol So what happens with canceling the deal?
Hi, if the house is appraised above the asking price, will we need to make up the difference or do I make up the difference if it’s appraise below the asking price?
Thank you for the vid! My clients appraisal came 29K lower than contract price and we have no contingencies. Can we still negotiate on price reduction?
If it’s conventional the appraisal doesn’t stick with the property correct? I’m having this issue with buying a house in New Jersey. It appraised lower and the seller wants another appraisal done by another company. It seems they may be greedy. But the 1st appraisals was airtight and the rebuttal didn’t even compare that the seller turned in.
@@tituaaaa i actually really wanted this house after been looking for 2 years in this crazy pandemic. I ended up going to another Morgage loan company because they would not do another appraisal they wanted to keep the lower appraised amount. I had to pay for another appraisal and that actually came back higher than the asking price so I’m finally closing next week! It was a serious gamble i took but thank God it worked in my favor.
@@A_lovely88 the market is crazy, in a similar situation now, 10k below sale price. seller don't seem greedy negotiating on lowering the price to match appraisal.
It depends on the language in your contract. In most cases, there is an appraisal contingency clause that allows the buyer to get their earnest money back if the home appraisal does not meet the contract value.
I have a question. What happenes if I hired a my own appraiser before I put the house for sales. I based my selling price based on that appraisal and now the appraiser from the bank of the buyer is coming up $20,000.00 less from my original appraisal. The difference of time of both appraiser done is one month. What can I do as a seller?
Here's a couple things you could do: 1. Ask the buyer's lender to submit a reconsideration of value with the comparable that your appraiser used. 2. You could always put your home back on the market and see if a new buyer/appraisal would change the price Appraisals are super frustrating. They seem so inconsistent.
So my new construction purchase price is 280k and I am planning to downpay 15k. And the home appraisal came out to 265k. Do I need extra 15k on top of initial 15k downpayment? Or I can just get 265k loan?
They will, but they will only lend on a percentage of the lesser of the purchase price or appraisal. e.g. If you're putting 5% down and the purchase price is $300,000 and the appraisal comes in at $290,000... the bank will only allow you to borrow 95% of the lesser amount which is $290,000. You put $14,500 down (5% of $290,000). The bank gives a loan for $275,500. And then if you are purchasing at $300,000, you'd have to add $10,000 to the cash to close to make up the difference. So, the bank will still loan you money, but they will require you to put more money in. TLDR; a bank will only lend on the lower of the purchase price or appraisal
Hey Hector! "Comps" is short for comparables, which are similar properties recently sold in the same area. They're used to help determine the market value of a home you're looking to buy or sell. By comparing prices and features of nearby homes, it helps give a more accurate price estimate. If you're ready to start on a pre-approval, feel free to visit www.winthehouseyoulove.com/lender or shoot me an email at kyle@winthehouseyoulove.com. Happy to help! -Kyle
My appraisal come in low. we agree to make the difference. Loan process already in final stage near to closing. I don't know why loan officer still said need to wait appraiser to revised my appraisal report after we agree to make difference. Loan officer can't explain well i still confused
Hi! I understand that loan process is confusing at times and sometimes, it is difficult to communicate with loan officers especially when they use words that you are not familiar with. I suggest that you write all your questions and ask your loan officer to write the answers for you. It will be easier and concise, and you can always go back to your written Q&A incase you forget something. Best of luck!
Not at all! It's very common to have an offer that says something like "buyer agrees to pay up to $5,000 to cover the difference of a short appraisal if applicable"
Well I am watching this video because your voice is so soothing it helps me relax
Haha thanks for watching!
Right?!
😂😂
It’s unintentional asmr lol
your voice is so reassuring and relaxing I think you could sell anything! Also, the info you present is often stressful when someone is trying to understand the real estate process...and you make it easy to listen to and understand. Thanks!
Thanks! I'm so glad to help!
You explain everything clearly... keep goin man your channel is going to grow with great activity.
Thanks so much!
Home was listed at $259k, offered $264k, appraisal came back at $258k. Seller was willing to renegotiate down to the appraisal price.
That’s wonderful! So rare to see in this market where everyone is out to benefit themselves.
First time home buyer and I’m so glad I found your videos!! ❤️
Awesome! Thank you!
I just got the appraisal for a home I'm purchasing and it was low and my heart sank. Have to talk to real estate agent and my lender. I can't afford to make up the difference. Right now I'm sweating bullets.
Ah, that's such a bummer! Try to talk with your agents about some of the ideas in this video.
Take a deep breath, take a walk, and start setting up a calm gameplan.
Same here! Going through this now
Do you have an update?
@@Yumhunn18 do you have an update?
Any update ms.katrina
Im currently waiting on an appraisal for a 260k house. It needs a lot of work done. We asked the sellet to help with closing costs, she only wants to give $2,000 which is almost nothing but we said ok because we really want the house. If the apraisal comes back low and she doesnt want to lower the prince, we are walking out of the deal. I cant deal with greety sellers. So im hoping for the best
Here in Seattle, homes are selling $100K over asking on a mediocre house. It is crazy right now, but, also on the market are a lot of homes requesting backup offers. My guess is that gap in the appraisal is waking some people up and they can't finish the loan.
That's tough, thanks for sharing!
I had an appraisal on a home that asking price was 675k and the hone appraised for 600k. The seller didn't want to budge on the price. Ironically, the house went back on the market twice after my offer. These sellers are crazy with these inflated prices.
Hi I'm a buyer. the house I wanted it didn't appraise. The Seller wont negotiate because they believe their house is more than the appraise. They asking us to look for another appraiser from a different lender. My question is Can I look for another appraiser from a different lender?
Thank you for peace of mind. Waiting now to see what my house appraisers for
Glad to help! Best of luck!
Same here
The house we are in contract for came in at 45k less than what it was listed for this past Friday. We are trying to negotiate a new price but the seller is in disbelief and won't budge too much off his price ( he did drop 10k ) so we are walking. We did offer 15k over the appraisal as we liked the house and didn't want to have to start all over again but I think that's best.
Outstanding!! I will use your 5 options when explaining to my buyer in the morning!
Fantastic! I'm glad it was helpful!!
I don't think you can judge the appraisal as being low until you read the appraisal report. The agent may have the wrong square footage for the home, there may be a cracked foundation or some other item that was not disclosed to the buyer.
I just have to save for the down payment of 3.5% closing costs and have some reserves, so I'll need around $10,000 just to be on the safe side. I'm in the process of starting a print on demand shirt business with my dad and I'm hoping I can get some funds quick to start investing.
Perfect. You can also get a gift from a family member if you don't have all the cash on hand.
@@WinTheHouseYouLove Yeah he was explaining that to me how he would be allowed to do that if it came down to needing to. That would most definitely be the smartest decision to make.
Started my print on demand business last year during Covid lock down. Good luck
Great video coverage 💯 elated that i found your Channel Iam getting close to closing on a home, have to get the appraisal done
Wow! Best of luck! Thanks for watching my video. :)
Great video! Dealing with this currently and this gave me good perspective. Well done!
I'm glad to help, best of luck on the appraisal!
Did the seller come down to the appraisal price??
This guy's voice is so calming
Thanks!
@@WinTheHouseYouLove His voice would surely make me empty my bank account...LOL
This is great!!! I’m an LO and Listing agent is trying to come at me because appraisal came low… which has nothing to do with me but this gives me a better insight. It’s fha so they would be out of luck for a second appraisal
But I just spent $550 for an appraisal and I can’t shell out another $550 for another appraisal. I don’t have that kind of money. It’s either this house or no house.
Ours came in at $49,000 instead of 52,800 but the seller came down to $49,000. But the appraiser made a comment about the roof needing to be replaced. So now we may have to get the roof fixed first. Waiting to hear what we’re going to do. So frustrated. We were supposed to close in 12 days.
Where do you find a $49k house?
Great videos and very educational! Thank you for sharing!
Thank you so much for watching!! :)
What I don't understand is that if the bank is solely worried about making sure their money is safe then why doesn't an appraisal have to meet the borrowed price. If I offer 275k on a home and it appraises at 265k but the bank is only giving me 220k...why do they care?
The appraiser came back 27k under the selling price. We negotiated to split the difference. Now the bank wants repairs and more inspections. The appraiser took a comparable 30 MILES AWAY. A house in the middle of no where. The appraiser has no idea what he's doing. This is an amazing house at a really good price compared to what else is on the market here.
I am 20 and turning 21 in April. I'm hoping to get my first property before I turn 21. I'm looking at a 4plex currently in my area that's listed for $79,000 which is pretty low where I'm at. I ran some numbers and it meets the 1% rule with a 1.75% which is ideal for my area. I can rent each unit for a minimum of $450 a month.
Awesome!
Did you buy the 4plex?
In this housing market, sellers really have no reason to come down on the price or meet you halfway when they are getting 20-30% over asking price consistently. Wish it was 2008 so I could scoop up some cheap real estate lol
I'm in upstate NY and all of the homes that are currently inflated 50-100k over appraisal are not selling. Some of them have been on the market for almost 2 years. Now with the interest rates climbing, it's time for sellers and realtors to have a reality check.
But thanks for all the knowledge you have on your channel. It's the best channel I've came across that gets to the point and has great information bro. Maybe you can evaluate some properties I find to help me see if they will be good deals. Thanks man.
Thanks again! I'm hoping to make some videos in the future on evaluating rentals
@@WinTheHouseYouLove Yeah please do that would be great man. I havent watched too many video on rental evaluation. I know you would go in depth with it forsure.
My appraisal came in suspiciously low. Even my mortgage broker was pissed. The appraiser used comps from 2020 and none from 2021.
Wow! I hope everything will go out well. Best of luck!
@@WinTheHouseYouLove Thank you. Got the results today. My broker escalated the situation. The lender found the appraisal faulty and have ordered a new appraisal.
In my neighborhood, a house listed for 359, contract at 344 with a backup of 350, and the damn appraiser deflated the deal to 330 🤬 I’m selling a similar floor plan, listing at 350, scared of the appraiser 🙁
Dang, that's a bummer! Sorry to hear that!
To protect the finances of their customer
If im the buyer, im not meeting shit in the middle
You can do that :)
Especially with them already making around 100k over their own purchase price.
Lol! That's how I feel right now.
The mortgage is around $450. I can rent for more than $450 but I am just saying $450 to give myself some cushion. I currently have a 746 credit score it was 756 before I got my discover but it will be going up soon. I will have 2 years of tax returns by the end of February, and I have a good DTI ratio with only my car loan really. I am going to apply for an FHA loan after I get my tax returns for the 4plex.
Sounds great! What state are you buying in?
@@WinTheHouseYouLove I'm in Ohio.
@@cameronnelson473 Oh cool, me too! We're based in Dayton. Let me know when the time comes and we can help you get pre-qualified
@@WinTheHouseYouLove thats great fr. I'm in the cleveland area. I'm gonna watch some of your videos on pre-qualification right now.
What is the Dayton market like?
Why aren't apraisals done before a contract is signed?
The appraisal has to be request by a lender and a buyer normally does not want to spend $500 on an appraisal if they don't know if they'll even be able to get their offer accepted
Man I’d hire you as my agent in a New York minute. Awesome content.
Wow, thanks!
Same but here in Florida
Watching this in October 2021 (hot seller’s market) where all the potential buyers on my home made offers 10-20k above the list price.
Appraiser came today and I came to this video curious about the answer to appraisals that come in lower than the offer.
It will be interesting to see what the outcome will be for my home. 🙂 But it was good to learn the option of the buyer doing less of a down payment to make up the price. Hadn’t thought of that. My realtor is handling it all but good to know all of the options nonetheless. Thank you!
Hello my name is Neil, I’ve watch your RUclips video and I was just wondering if you can answer some questions for me. I get the feeling that my realtor broker/ agent is just trying to get a sale and don’t care about the repercussions we may face. I hope you can give me some advice , just don’t want to get taken advantage of and I’m not getting a straight answer from anyone.
We signed a contract using a VA loan - unaware and was not explained by our realtor , there was an appraisal waiver written into the contract. We are at the point where our lender has requested that both buyer and seller sign the VA Addendum to Contract in order for the appraisal to be released. The seller refuses to sign saying it will counter the terms in the initial contract.
My questions are:
1. Can an appraisal be wavier in an initial purchase contract for VA loans?
2. Will this VA Addendum to Contract supersede the initial contract?
3. What happens if the seller does not sign?
4. How do I retain my earnest money if the loan doesn’t get approved?
I would greatly appreciate your help
US MARINE 1999-2003 served in the Iraq campaign
Neil
Great questions!
1. Yes, but the VA Escape Clause will supersede it
2. Yes, the VA Addendum will supersede the initial contract. This is because it states "notwithstanding any other provisions of this contract". There is no way around this on a VA loan. You can choose to pay more (e.g. "purchaser shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established"). However, with a VA loan it is impossible to be obligated to via the purchase contract.
3. If the seller does not sign, you cannot get a VA loan. You could explore getting an Conventional loan instead
4. You'll need to read through your contract since all contracts are different. Most contracts have a financing contingency section that says if you can't get approved for a loan, you will get your earnest money back
Waiting on the appraisal for a home in Cleveland TX 😅
Best of luck!
Fingers crossed that the appraisal for my home I'm selling will be high. 25,000 above comps high.
I wish you luck!
Thank you your the best sir!
My pleasure! Thanks for watching. :)
Did you ever see a situation where the appraisal came the same when you bought it a year ago . After 100k on remodeling, including a 37’x 25’ garage was made,. In FL the market is high than a year ago. Another question, Are all the appraisal companies are accurate?
Hi! They should. appraisal companies must provide an accurate opinion always.
Wait so you can use the money from your down payment on the house towards what you bid over? I just learned that we have to make up from our own cash out of pocket what we offer and It makes me nervous bc we dont have much extra cash to bid! We have enough for closing costs and extra money to keep in our savings thats it. Also our down payment is only $6k. Please help still confused on this. Thanks for your videos though! They really have been helping me!
Yes IF you were planning on paying above the minimum down payment
Super helpful video man !
Glad it helped!
Thanks for that info.
Any time!
*The home we are hoping to buy appraised almost $30,000 under. Smh. We strongly trust the Appraisal and don't believe that the house is worth $30K more. Negotiating under is going to be a mess we are willing to make.*
Nice move! Don't waive inspections, okay? Best of luck!
How did it turn out??
Any update?
Hi Kyle. Nice video, very informative. Is there a way to find out if a property has had an appraisal in the last 6 months OTHER than asking the seller? Thanks
Thanks! Yeah the only way to know is through a seller
yesterday my appraisal came in 10k low. so far the seller have been really professional and fair. im hoping the seller come down to appraised price.
Hey papoworld, thanks for reaching out. Sorry to hear that your appraisal came in 10k low, that can definitely be frustrating. It's great to hear that the seller has been professional and fair so far. In situations like this, it's important to have open communication with the seller and your mortgage lender. They may be able to work with you to find a solution that works for everyone.
@@WinTheHouseYouLove update, the sellers agreed to reduce the contract price to match the appraisal.
Hey papoworld, thanks for reaching out. Sorry to hear that your appraisal came in 10k low, that can definitely be frustrating. It's great to hear that the seller has been professional and fair so far. In situations like this, it's important to have open communication with the seller and your mortgage lender. They may be able to work with you to find a solution that works for everyone.
Hey papoworld, thanks for reaching out. Sorry to hear that your appraisal came in 10k low, that can definitely be frustrating. It's great to hear that the seller has been professional and fair so far. In situations like this, it's important to have open communication with the seller and your mortgage lender. They may be able to work with you to find a solution that works for everyone.
Just received the appraisal for a home I'm supposed to purchase and it came back extremely low.. what in the world?! I can't afford the difference!I feel it's time to walk away... more like run?! Lol So what happens with canceling the deal?
That's super tough, sorry to hear that! You'll need to talk with your agent about your options
Hi, if the house is appraised above the asking price, will we need to make up the difference or do I make up the difference if it’s appraise below the asking price?
Is it worth it to go to another lender to get a 2nd opinion on the appraisal, or would they use the same one?
Thank you for the vid! My clients appraisal came 29K lower than contract price and we have no contingencies. Can we still negotiate on price reduction?
Shouldn’t you have learned that in real estate school?
Very helpful.
Glad you think so!
If it’s conventional the appraisal doesn’t stick with the property correct? I’m having this issue with buying a house in New Jersey. It appraised lower and the seller wants another appraisal done by another company. It seems they may be greedy. But the 1st appraisals was airtight and the rebuttal didn’t even compare that the seller turned in.
Any update?
@@tituaaaa i actually really wanted this house after been looking for 2 years in this crazy pandemic. I ended up going to another Morgage loan company because they would not do another appraisal they wanted to keep the lower appraised amount. I had to pay for another appraisal and that actually came back higher than the asking price so I’m finally closing next week! It was a serious gamble i took but thank God it worked in my favor.
@@A_lovely88 the market is crazy, in a similar situation now, 10k below sale price. seller don't seem greedy negotiating on lowering the price to match appraisal.
if the cancellation of the deal happens, would the buyer get back the earnest money?
It depends on the language in your contract. In most cases, there is an appraisal contingency clause that allows the buyer to get their earnest money back if the home appraisal does not meet the contract value.
Offer was accepted at 515k and I signed a 22AD for “up to $5000”. What does this mean?
Ask what something means before signing it
I have a question. What happenes if I hired a my own appraiser before I put the house for sales. I based my selling price based on that appraisal and now the appraiser from the bank of the buyer is coming up $20,000.00 less from my original appraisal. The difference of time of both appraiser done is one month. What can I do as a seller?
Here's a couple things you could do:
1. Ask the buyer's lender to submit a reconsideration of value with the comparable that your appraiser used.
2. You could always put your home back on the market and see if a new buyer/appraisal would change the price
Appraisals are super frustrating. They seem so inconsistent.
Damn I thought this was about cars
So my new construction purchase price is 280k and I am planning to downpay 15k.
And the home appraisal came out to 265k. Do I need extra 15k on top of initial 15k downpayment? Or I can just get 265k loan?
You'll want to follow one of the suggestions in this video :)
How are people buying homes for more then what they appraised for, do banks allow that?
You can if you bring the extra cash to make up the difference
@@WinTheHouseYouLove but the banks wont approve a loan for a home that appraised less then asking the price?
They will, but they will only lend on a percentage of the lesser of the purchase price or appraisal.
e.g. If you're putting 5% down and the purchase price is $300,000 and the appraisal comes in at $290,000... the bank will only allow you to borrow 95% of the lesser amount which is $290,000.
You put $14,500 down (5% of $290,000). The bank gives a loan for $275,500. And then if you are purchasing at $300,000, you'd have to add $10,000 to the cash to close to make up the difference. So, the bank will still loan you money, but they will require you to put more money in.
TLDR; a bank will only lend on the lower of the purchase price or appraisal
What are comps
Hey Hector! "Comps" is short for comparables, which are similar properties recently sold in the same area. They're used to help determine the market value of a home you're looking to buy or sell. By comparing prices and features of nearby homes, it helps give a more accurate price estimate. If you're ready to start on a pre-approval, feel free to visit www.winthehouseyoulove.com/lender or shoot me an email at kyle@winthehouseyoulove.com. Happy to help! -Kyle
My appraisal come in low. we agree to make the difference. Loan process already in final stage near to closing. I don't know why loan officer still said need to wait appraiser to revised my appraisal report after we agree to make difference. Loan officer can't explain well i still confused
Hi! I understand that loan process is confusing at times and sometimes, it is difficult to communicate with loan officers especially when they use words that you are not familiar with. I suggest that you write all your questions and ask your loan officer to write the answers for you. It will be easier and concise, and you can always go back to your written Q&A incase you forget something. Best of luck!
@@WinTheHouseYouLove you so nice!!! Thank you
He's voice👌🏼
Thank you so much for watching!! :)
😕I had to go up 10k and the seller went down 5k . Is that ok ?
Sure, if it makes the transaction work!
Is that illegal as an agent to let the seller accept the buyer is willing to pay the difference of the low appraisal?
Not at all!
It's very common to have an offer that says something like "buyer agrees to pay up to $5,000 to cover the difference of a short appraisal if applicable"
Can the home buyer hire / select a FHA appraiser or is only the lender allowed to do this?
Only the lender can select the appraiser