Posted on: 06th May, 2009 09:02 am
The bank's appraiser had appraised the house I want to buy at $195,000 (the purchase price is $180,000). The bank has tossed that aside and decided that the house is worth $135,000. They want me to put more money down (I was already putting 30%).
I'm confused by what this would mean if I try to sell my home in the future. Comparable homes are selling for around the price I'm paying ($180,000) but if I try to sell and then a bank can just decide it's worth much less - it doesn't look like a good investment. How am I supposed to judge the investment when the banks can just do this?
I'm confused by what this would mean if I try to sell my home in the future. Comparable homes are selling for around the price I'm paying ($180,000) but if I try to sell and then a bank can just decide it's worth much less - it doesn't look like a good investment. How am I supposed to judge the investment when the banks can just do this?
If the bank is appraising this property at $135k and your paying $180k, I would recommend you go back into negotiations with the seller. This is not the invetsment you want in this type of market. I hope this helps...
It's confusing because the appraiser put it at $195,000. That amount fits with what houses (some of lesser quality) are still selling for in this area. For some reason the bank has cut that down to $135,000. I don't know what the basis is for such a large reduction.
Talk to your relator and see if he can come up with some comps in that area. That will show if some property has been sold for that value in that area.
Also ask the current seller to put in a assesment request to county. ( Long shot).
Check with one more bank if they can finance your loan and what they will appraise this property ( If you have not paid any fee to this bank)
Also ask the current seller to put in a assesment request to county. ( Long shot).
Check with one more bank if they can finance your loan and what they will appraise this property ( If you have not paid any fee to this bank)
Hi Eve,
You should contact your bank and check out why they have reduced the value to $135,000. As you are the borrower, the bank is bound to explain the causes to you.
You should contact your bank and check out why they have reduced the value to $135,000. As you are the borrower, the bank is bound to explain the causes to you.
Eve,
Did they give an explaination why they reduced the numbers? Based on some facts?
Thank you,
Did they give an explaination why they reduced the numbers? Based on some facts?
Thank you,