Trying To Keep A Balanced Outlook
The appraisal on the new house came back yesterday, and (as a shock to everyone involved) it appraised far lower than the agreed upon purchase price (by about $30k). So, either the seller has to drop the price or we have to walk away, because the mortgage lender won't lend on a property valued below asking price, for obvious reasons.
I'm stunned. My agent is stunned. The seller's agent is in a frenzy... and we haven't yet heard back from the seller.
I'm still really just in absolute shock this morning... and I didn't sleep all that well, truth be told.
I don't really know what this will mean for me and my family, but I am trying not to see this as a pure negative. First of all, it's good to know I won't automatically be in a financial investment hole by purchaising a property for more than it is currently worth on the market. Second, maybe I'll just end up getting this same house for cheaper. Third, if I don't get this house, perhaps it will only lead to something better that will ultimately make me happier in the long run. It's just scary and severely stressful in the short run.
Positive and harmonious energy is appreciated...
Replies
Sending good vibes...you'll be okay...
Sigh. . . Kinda like thinking you are on a solid track until you step over the edge of a cliff? No wonder moving is listed as one of the most stressful aspects of contemporary life. . .
Trust yourself to find your way through, Jenn. One way or another, it all works out. Wouldn't be much of an adventure without the surprises.
Thank you, misleadingsmile! I really appreciate it!
So true, arfie! I'm also very grateful my rosacea is still fairly calm through all of this. Moving is just hella stressful. It triggers our primal human desires around shelter and security, for sure
I guess I'm living in that state the Buddhists refer to as "sunyana"... not caterpillar and not butterfly, but currently the primordial goo between the 2 states...
Im sorry hugs.
Thank you. Still waiting to hear back from seller... maybe that's a good thing... ??? ...
If the realtors are surprised, then it's possible that it's just a glitch...that the wrong number got entered somewhere in the appraisal. If that stands up, the owner will probably look to get another appraisal done. Only if both of those still show a lower value will the owner think of dropping the price. Much will depend if they HAVE to move (such as for a job) or simply want to move (as into a bigger or smaller house). Long story short...it may take some time to sort all of this out.
We have until Tuesday night to sort this out. A decision has to be made by then or we have to walk, to keep safe through the appraisal contingency in the contract that protects us as buyers. The seller apparently told my agent they are going to try to make it work... but that's pretty vague, and I don't know what that means.
You mean for getting your good faith money back? As far as that goes, it's sort of a non-issue. It's virtually a guarantee to get that money back no matter what. Practically, if you don't get it back, you can put a lien on the house and make it so that they can't sell until you're paid. $100 or $1000 really doesn't matter. (That's the kind of thing that realtors seldom tell people.)
Well that's good to hear... :)
I've lived in 6 states and we always rented and then would buy after we had been there for a few months. That gave us time to look for what would work for us and get a feel for the real estate market in that area. If it falls thru on the sellers end you should get your money back. I hope this works for you and they drop the price to what the appraisal came in at.
Thank you, Trisha! I hope so, too. We will hear back from them with the decision today. I have thought about renting, but I have 4 pets and it would be cheaper to buy than to try and pay all that pet rent.
We had to walk away. The seller wouldn't budge. They didn't care what the property appraised for... they wanted the asking price. *sigh* Moving on.