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What to do if property appraised value is too high?

Posted on: 24th Oct, 2007 05:13 am
I've planned to buy a condo in a complex that ranges from $180,000 to $230,000 for 1, 2 and 4 bedrooms. The complex is 20 year old. The condo I've opted for has 2 bedroom. The highest price of a condo in the complex is $195,000 and the unit that I'll be buying has been appraised for $180,000. Everything in the condo is in good condition as it is stated but the carpet is stained, torn and certain contents of the house are rusted and look quite dirty. The kitchen floor has been replaced some 18 years ago ..so I guess that won't be as effective as a new one now.

We are having an home inspection next week and the current owner is too stubborn and doesn't want to listen to us. 8 years ago, the owner bought it for $175,000 even if the records of the property transferred say it was $120,000. He hasn't done any improvement on the home ever since he occupied it. Any suggestions as to what I should do now?
walk away let him sit there
you can get another great deal there are a few out there today
its a buyers market dont settle go get a deal.
You can buy a property that was selling for 240+ last year for 180 today so look arround. If you getting pressure from realtor then something is wrong.
Posted on: 24th Oct, 2007 08:46 am
Hi Mark,

As you have said that you are having an home inspection next week, I think should make it. And then if you don't like or if you are not happy with the price, do not go for it. You will have so many good options if you shop around a bit.

Wishing you best of luck,
Larry
Posted on: 25th Oct, 2007 02:04 am
I have a friend who had gotten mixed up in the refinancing by a predatory lender nightmare and is about to loose her home. They over appraised her house, there is no way it is worth what they said it was worth, she then gets a bigger loan than she should have. Her rate is variable and the rate has jumped to the point where she can't afford it. She is disabled and has a disabled daughter, she is now 4 payments behind and is probably going to loose her home. Don't the banks check the apprasel and verify when they are coming in high. There is no home in the area worth what the appraiser said? If you are in this situation can you request the bank get a second oppinion? What should one do?
Posted on: 04th Nov, 2007 04:15 am
Jbarto,

The bank is supposed to check the appraisal report. And, if they find out any discrepancy, they allow the buyer to go for a second opinion from another appraiser.

In the situation you have mentioned, your friend can do nothing but sell te home for whatever she is getting and pay off a part of the mortgage. Then on account of her disability, she should request the lender to forgive the debt. Now, depending upon the laws, she may or may not have to pay tax on the forgiven debt. Alternatively, if the lender isn't keen on foreclosure, she should request for an alternative payment plan if possible.
Posted on: 05th Nov, 2007 10:55 am
You have the right to negotiate the price you want or walk away from the transaction. Since the appraisal came in low, you should be covered by the clause in the purchase contract that makes it subject to financing. The bank will only lend you funds on the appraised value if it is lower than the purchase price.
Posted on: 06th Jan, 2008 12:47 pm
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