House didn't appraise

[Deleted]

We have an offer in on a house which was almost complete-we changed a couple of things and upgraded appliances, tile and insulation. About 12k worth of stuff.

So the appraisal was done and it's coming in 2800 less than the total sale price.

What happens? We suck it up because of the upgrades or the builder lowers the price?

[madisen]

Talk to your lender/loan officer before you jump ship. Appraisers are a third party vendor and the lender had nothing to do with the house not appraising. The lender wants this to work as much as you do.

Plus there are some changes with appraisals going on this year in the industry. It's not as easy as getting a new appraisal anymore. They are being tracked more and are being scored by FNMA/FHLMC for risk purposes.

Generally I've seen sellers and buyers negotiate in these instances. Go back to your builder and see what they say. Do you have a real estate agent working on your behalf or just the builder's office. If the former, your rea should advocate on your behalf here.

[krystee]

I would see if the seller/builder would come down $2,800 first, or at least split the difference if they reject the full $2,800.

[thatgirl2478]

Apr 26, 2015 20:13:03 GMT -5 krystee said:

I would see if the seller/builder would come down $2,800 first, or at least split the difference if they reject the full $2,800.

What krystee said.

Sent from my XT1080 using proboards

[compassrose]

Our realtor appealed based on my comps and with the remaining difference, we went up 1K and they came down 1K.

[starlily]

I would see if the builder will lower the price.

[Deleted]

Hmm, I think this happened to me when I bought my house 6 years ago. If I recall correctly, we just had to pay cash for the upgrades. The bank wouldn't budge on wrapping them into the mortgage. I think in my case it was only a couple thousand dollars, which thankfully we had available.

In your case I wouldn't walk away over $2800 unless you absolutely couldn't come up with the money. I think this is fairly normal (though annoying).

[Pom]

You may end up having to pay the difference depending on how much your upgrades cost in total, but it would not hurt to try and negotiate with the builder if at all possible. Our new build house/production builder failed appraisal by $40k and we walked after trying to negotiate.

We would have gladly paid for the upgrades in the amount of $2,800.