I think I found my new home!

[Red October1984]

Originally Posted by frau kaleun

I logged in but then after about two seconds realized how tired I was and that I just didn't have the energy to carry on a conversation. So I sat here and played Purble Place for about five minutes until my brain died and then I went to bed.

It happens. I just wish that more people got on IRC every now and then.

[vienna]

You MAY be the first female in human history to admit such a state exists for the female!

Read well, these may be privateer's last words...

<O>

[Cpt Aurora]

If I had enough money (which I surely don't ), I would buy a Sub Marine and make it a home for myself. Preferably a Typhoon class .

[frau kaleun]

Well, serves me right for being optimistic.

Not really bad news, depending on how the seller responds... just got an email from the loan officer letting me know that the appraisal came back $9500 lower than the currently contracted purchase price. Apparently some other units in the same complex and nearby just sold for at or near that much lower price, which is lowering the value of every other comparable place.

So the bank will only agree to pony up for the appraisal price and nothing more, which means I'd have to make up the difference out of pocket by adding that amount to my downpayment which is not gonna happen.

The other option is that the seller will agree to renegotiate the price. It's my understanding that the appraisal stands for 90 days, and if that's what comparable places are being sold for at present she's kinda stuck with that unless she wants to hold out and hope it changes for the better down the road. I do know that due to her situation she really, really wants to sell this place ASAP so it's possible that she'll accept a much lower price. If so that would suck for her but work out very well for me.

It's sad cuz I would be happy to pay what we agreed on if it weren't for this issue but there's really nothing I can do about the appraisal and all that. I'm just keeping my fingers crossed that she's willing to renegotiate because I really want this place and it's unlikely that something like it that is affordable is gonna come along any time soon.

[AVGWarhawk]

I get the impression she needs to move. She will probably have to take the loss or meet you half way. Is there meat on her end of the bone ultimately is the question. I hope it works out in your favor!!!

[frau kaleun]

Originally Posted by AVGWarhawk

I get the impression she needs to move. She will probably have to take the loss or meet you half way. Is there meat on her end of the bone ultimately is the question.

My realtor got a copy of the same email and called me soon after, she said she'd already called the other agent to get some idea of what he used as a benchmark when listing it because TBH we thought the place was practically a steal at the listed price. It's only been on the market since December but I guess that's how fast things change... doesn't help that there are a lot of foreclosures and short sales in the area which is driving down prices.

But I will say that the places we looked at that were priced lower were generally in terrible shape - some we never got past the foyer because just the smell was so bad. You'd need to spend the extra $10-15K just to make them livable.

I hope she's as anxious to sell as she seemed to be a month ago, but I don't know. My realtor feels that given the current market and the fact that three places in the same complex have just sold at around the appraisal price, she might actually come down to that. Which would be fantastic for me, but we'll have to see what happens. A couple weeks ago she was balking at doing anything about the broken dishwasher because I was already getting such a good deal on the place so who knows how she'll react to this.

[AVGWarhawk]

We can only hope she realizes the home will only for so much. Does not matter who is buying it. Appraisal is an appraisal. So, she is then stuck with the home or takes a loss. The question is, can she afford the loss?

It all sucks after going through the motions and taking your time to work the deal. I hope it works out. If not, you are that much wiser on the next home you look to purchase.

Buying a home is on the top of the list as most stressful endeavor one embarks on. I can think of others. Let say it is in the top five!

Hang in there!

[frau kaleun]

Originally Posted by AVGWarhawk

We can only hope she realizes the home will only for so much. Does not matter who is buying it. Appraisal is an appraisal. So, she is then stuck with the home or takes a loss. The question is, can she afford the loss?

Yeah, that's the thing. Anybody else trying to buy it now is going to run into the same thing as me, and unless they're willing and able to pay a lot more out of pocket on the front end it's not gonna happen. If she's not willing to risk waiting for that then I could get very lucky.

Hang in there!

Not much else I can do at the moment!

[frau kaleun]

Well the listing agent for the condo responded to my agent, they are questioning the appraisal and after looking at the info they provided and checking out the comp properties considered by the appraiser I don't blame them (not that I did anyway).

Two of them are 600+ sq ft smaller than the one I want, none of them has as many bedrooms and/or bathrooms, one was an estate sale that had the price reduced as an allowance for the condition of the interior. And I'm pretty sure at least one was a short sale or foreclosure because I remember looking at the listing several times. No adjustments are noted in the report regarding the differences in amenities, size, or condition between those properties and this one. In addition another property within the same area, still smaller than mine, just sold for several thousand more than any of the properties used for comparison.

So my agent is contacting the loan officer to see what if any options exist, I guess for getting the appraiser to revisit his evaluation. If a second look doesn't result in something more pleasing to the seller I guess she'll have to accept that she won't get anything more for the place in the current market, but whether that will make her more open to renegotiating the price for a quick and sure sale is anybody's guess.

[Sailor Steve]

Got all my fingers and toes crossed for you.

Tell them to hurry up, I'm getting a cramp.

And it's hard to eat my birthday cake.

[Mork_417]

Hope it works out for ya.

I felt kinda bad for the guy that sold us our house, as he was in a similiar situation. He took a big hit, and had to pay a fairly large amount out of pocket to sell.

[Herr-Berbunch]

Originally Posted by Sailor Steve

Got all my fingers and toes crossed for you.

jkl;gdfljkryl;l awer;lkj';lsdfag

Well I too had my fingers and toes crossed for you, but it turned out my typing with my nose ain't so great.

I'll cross them again any momghjc

[AVGWarhawk]

Originally Posted by frau kaleun

Two of them are 600+ sq ft smaller than the one I want, none of them has as many bedrooms and/or bathrooms, one was an estate sale that had the price reduced as an allowance for the condition of the interior. And I'm pretty sure at least one was a short sale or foreclosure because I remember looking at the listing several times. No adjustments are noted in the report regarding the differences in amenities, size, or condition between those properties and this one. In addition another property within the same area, still smaller than mine, just sold for several thousand more than any of the properties used for comparison.

Sounds to me the appraiser did not do their homework. If anything, close the gap some on the appraised value and current sale price. The home you are interested in has more to offer obviously than the others in the same neighborhood.

[frau kaleun]

The loan officer has responded that the only recourse if they want to contest the original appraisal is to find additional units in the same complex that sold for more within the past three months and ask they be used to reevalute things.

Note that they want units "in the same complex." I've asked my agent about this, as it was clearly not part of the criteria used in the original appraisal - at least one of the comps the appraiser considered is NOT in the same complex. Meanwhile another condo that isn't in the complex but is still within the 1 mile radius was sold less than two weeks ago for more than what this owner wants and was completely left out of the equation.

Not heard anything more today from the owner or other agent about a possible renegotation.

My loan officer did let me know that if the owner refuses to budge at all, I could pay 10% on the appraisal price instead of 20% on the full purchase price and then make up the difference and my out of pocket would only be $1100 more than what I would have paid if the sale had gone through as originally hoped. It would raise my monthly payment by less than $50 so that isn't bad as a worst case scenario and is definitely doable. The downside is I'd still be paying more for the property than their appraiser thinks it's worth in the current market, which would be bad if I ended up having to resell it quickly for some reason.

[AVGWarhawk]

The downside is I'd still be paying more for the property than their appraiser thinks it's worth in the current market, which would bad if ended up having to resell it quickly for some reason.

Almost everything we do comes at a risk to some degree. I would say if you had to sell it quickly in a year or so you would still be underwater with closing costs etc. Even if the house was purchased at the appraised value today. Hope to stay long and the property appreciates in value.