5,112,471
Unless the buyer is willing to pay more than appraised value, you need to resell the home and hope the next buyer's lender's appraiser gives it a higher value. But there's always the chance the next appraiser values the home even lower. You may need to figure out with your seller how they can get the home sold at appraised value.
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Jennifer Mackay
Panama City, FL
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Lise Howe
Washington, DC
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Bob Betel
Sweetwater, TN
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Kathleen Daniels, Prob...
San Jose, CA
6,417,434
And moving on to the next buyer, unless this one has some cash to put into the deal.
And you may want to start exploring ways for your seller to take less, if the appraisal is accurate then the next buyer may have the same problem.
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Lise Howe
Washington, DC
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Bob Crane
Stevens Point, WI
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Chris Ann Cleland
Gainesville, VA
5,583,328
why did you take the listing at such a high price? buyers buy on comparison....did the buyer realize what he/she was buying?
either the buyer pays the difference or the seller needs to wait until the market changes...
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Debbie Gartner
White Plains, NY
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Melissa Jackson REALTOR
Azle, TX
3,383,384
FHA or VA can stick with the property. Hopefully this is only a conventional loan and you can give it another shot with another buyer.
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Lise Howe
Washington, DC
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Kathleen Daniels, Prob...
San Jose, CA
1,846,901
You're done! Unless it is an FHA appraisal that will stick with the property for 6 months. Buyers need to bring in more down or return the EM.
Seems like this always happens in the spring.
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Lise Howe
Washington, DC
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Nina Hollander, Broker
Charlotte, NC
1,728,156
Time to find a cash buyer. Not much you can do to correct the situation, unless the buyer is willing and able to pay the difference between the sale and appraisal price.
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Lise Howe
Washington, DC
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Kathleen Daniels, Prob...
San Jose, CA
2,707,721
Sandy Padula and Norm Padula, JD, GRI nailed it with their answer.
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Sandy Padula & Norm Pa...
, CA
1,617,916
991,252
Unless the buyer wants to up their price - it's a no go - which is why I always put that clause in my contracts!
1,624,653
It depends who motivated more.If the buyer wants the house, they shall come up with the difference and restructure the funding.
3,986,308
2,375,694
444,170
I tell my clients before the appraisal comes in that an appraisal below purchase price has only four ways it can be resolved: 1) The seller can lower the price to match the appraisal. 2) The buyer can pay the difference in cash. 3) Buyer and seller can split the difference, not necessariy 50/50 but each pay some portion. 4) The deal can fall apart. That's it. And I've seen all four of those happen.
Before the recession we could get another appraisal and hope it came in higher, but now if lenders have more than one appraisal to consider they are required to use the lower one. And even worse, an FHA or VA appraisal can't be superseded by a new one for six months!
3,988,013
It depends on the lender whether they will allow that and whether their underwriter thinks there is justification for a second appraisal. Most sellers bite the bullet and drop the price in our market since buyers are not willing to pay over appraisal.
225,526
Hi Ty, you have a very tough situation here. The sellers, who have been in their house for 40 years, are trying to get the most out of their house, and I'm sure the buyers want to pay the least amount. Buyers are happen with the low appraisal and I 'm sure they would not want another appraisal that shows a higher amount. Yes, going to another lender (providing the rate is the same or better) and getting a new seller paid appraisal might work, but if the appraisal is higher, why would the buyer agree to it? My guess is that it would be a waste of time, for the buyer, unless the second appraisal is lower. Then the seller has a choice to make. The seller needs to come back to reality on their pricing, because if I were the buyer, I'd stick to my guns. As my dad used to say, Homes are like the bus stop, if you miss the first one, there will be another one just around the corner.
2,817,727
I think there are some great answers here...assuming that appraisal is fairly accurate and another one would prob be pretty similar.
Other considerations...
Is the market in your area/this segment going up or going down. If they wait, do you think value will increase or decrease?
I'm guessing they are downsizing if they lived in the house this long? So, how much are they paying in taxes...and how much does waiting cost (taxes, maintenance).
Where are they moving to? Are those prices increasing or decreasing? Are they paying that in case or mortgage? And, what about interest rates?
It sound like most likely, they will need to make some tough choices, unless the buyer loves loves loves the house and is willing to overpay.
1,506,013
Ty here are the options I've seen:
- Seller can challenge the appraisal and get a second one issued.
- Buyer can pay the difference (more $ down, etc.).
- Buyer can walk.
2,784,566
3,741,885
The sellers would have to void the contract to put the house back on the market and hope for a better outcome.
1,466,257
Ty Dwyer 1) Seller accepts appraised value. 2) Buyer agrees to pay amount above appraised value. 3) Seller and buyer split the amount over the appraised value and you have a successful closing. 4) Next!
4,800,132
1,241,754
3,349,404
You say the appraisal seems accurate but a little low. I don't know how far off you are ... in the past when I have had a low appraisal ... and I KNEW it was low and there were comps to support a higher appraisal ... we got another appraisal ... and BOOM ... it was at value.
321,564
I agree with Barbara Todaro The buyer brings more money or the seller can wait on the market. Bidding wars place properties in this position. If buyer offered $$ then they saw the value and can pay the difference.
913,468
Cancel unless buyer has cash and is willing to pay more than appraised value.
292,685
Whether it's cash or finance a value needs to be determined and agreed upon by both seller and buyer . It appears your seller is not being realistic and I think you may have to remove yourself from this as the selling agent until the sellers come to terms on the value of their home.
921,504
When you took the listing you should have know whether is was 'aspirational' pricing or not.
Many, many, many times I've look the buyers agent in the eye and simply stated, how bad do you want the house?
Other times I have created the justification of the value through the CIS Score.
Other times I simply have to say, this is the cost of living with the history of Babe Ruth.
In all cases I do advise the seller an appraisal issue could exist and lay out the options available at the beginning then stay the course until the seller blinks.
6,453
I was thinking the buyer could come up with more money, or the seller could offer owner financing...definitely thought of the cash angle. Just looking for other 'angles' I realize the obvious.
150,466