What if my appraisal comes in to low?
Hi, I'm buying a house as is, it needs alot of cosmetic work inside and lawn mowed ect. It's definitely liveable and is in a growing neighborhood with many comparable houses. It's 9 yrs. old. The owners live out of state and are only asking what they owe on it. What are my chances of my appraisal coming in high enough for my mortgage?
- blibityblabityLv 71 decade agoBest Answer
Go to ditech.com and they will give you a range on the property. Go with the lower range. Also, your bank may not require an appraisal on a purchase.
- Etta PLv 41 decade ago
The comparable sales will have alot more to do with it, more so than that the sellers just basing the price on what they owe. The market in some areas is so bad that the property values are lower than what the owners actually owe on it. To protect yourself always have a contingency built into your sales contract that gives you a way out, to get your deposit back, if the property value comes in lower than what the purchase price is or you could be stuck forking out the difference from your pocket. Lenders generally only finance a certain percent of the purchase price or appraised value, whichever is less.
- AnOrdinaryGuyLv 51 decade ago
If it's only 9 years old, it's market value is probably higher than when it was first sold. But who knows what the sellers have borrowed on it?? They might have borrowed on all the equity, and then when the market cooled last year found that they owed more than the place is worth. They have to pay off their mortgages. You shouldn't agree to pay more than the value/appraisal. For almost all the country, it's a buyer's market--houses are sitting around longer before they're sold, which gives you good negotiating advantages. Don't pay more than the appraised value-there are other good deals out there if you keep looking.
- 1 decade ago
You just need to get an appraisal, which if you are going to obtain a mortgage on the property, the lender will require an appraisal anyway. This is not a question that any of us on yahoo answers can answer without knowing anything about the property.
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- Anonymous1 decade ago
Only a fool would pay more for a house than it's worth.
The present owners know that - and since they're being gobbled alive by the mortgage payments, they are what you call a "motivated seller". They don't want to file bankruptcy.
So you negotiate a lower sale price. They will scream bloody murder, and I don't blame them, because they are being pinched hard, but you're not responsible for their situation; they are. If they'd kept up the house, it'd be worth more. It's not. And you may be their last best hope of avoiding bankruptcy.
Take a look at the mortgage your banker will give you on the house, and offer *exactly* that much money for the house, no more. Instead of putting your money into a down-payment, put it into fixing up the house. And if the seller refuses to sell for that price, walk away from the deal. You are under NO obligation to solve his problem by making it your own.
- godgedLv 71 decade ago
If your appraisal is too low, the lender won't fund on the loan. House values are coming down, so it is possibly your prospective house won't appraise high enough. You will need to cover the difference, lenders won't loan more than the house is worth.
Keep your fingers crossed.Source(s): Oregon Realtor
- Anonymous1 decade ago
you can go to a realtor (Remax,Century21,just for example) website and type in the area you live in an the age of the home and a few other questions and they will give you a ''ballpark'' estimate of the value of your home by ''dollars per sq. foot.'')(example; 2500 sq.ft. home at $100 per ft.equals $250,000.So check this out,I think it should help you find the value of said house.Source(s): Certified MASTER carpenter (36yrs.)