I just wanted to give a quick update on this house buying.
Like I said briefly in the last post, the home inspection went pretty well. I asked them to fix some minor things including a leaky faucet in the basement, some broken window latches in the bedrooms and to service the HVAC unit... all of which they did - easy peasy.
Everything was moving along quite nicely... a little too nicely...
On Friday I got some bad news... that the house appraised for 17k less than the purchase price. That was totally shocking... I knew it might not appraise for the purchase price but 17,000 less? Ludicrous! For those of you that haven't really dealt with this situation, the bank will only give you a loan for the purchase price or the appraised value - whichever is less. So in this case it's the appraised value.
My mortgage guy, my agent, and the seller's agent tried to get the appraised value up, but there just wasn't much they could do. In all honesty the comps are what is killer... that and banks/appraisers being more cautious than before...
It was quite the depressing weekend for me. I was in a pretty hopeless state because I couldn't see a situation where it was going to work out... I mean I came up with a few with it working out, but mostly I just didn't think the sellers would be able to take a 17k less... like they would be losing money at that point... it just seemed doomed.
Well, Monday rolls around and my agent gives me a call to ask if I would be willing to drop the closing credit I originally had with my accepted offer. I don't have that much cash and needed the closing credit, but after I knew the appraised value was so low I figured there no way I'm getting that closing credit anyway... so I told her that I would need to see but I think I could do it.
Anyway... I was able to ask my dad for some help and thankfully he graciously agreed. (My dad is really amazing!!)
I told my agent and she told the sellers agent... and then later that day I got verbal and then written confirmation that the sellers are going to sell me the house at the appraised price... 17k less than our original offer...
Can you believe that? It all worked out and I came out of it better than before... I'm stunned, but sometimes things happen for a reason.
1 comment:
That's good news!
Our house is appraised for A LOT less than we paid for it in 2007. We are really wanting to sell and get into a bigger house, but we know we are going to lose a lot of money in the process. It is definitely not something that I am not looking forward to (especially all the strange people coming in and out of our house for viewings and having to keep our house in immaculate condition!)
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