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Ty Dwyer, Richmond VA Condo/Townhouse Expert (First Choice Realty)

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Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Unless the buyer is willing to pay more than appraised value, you need to resell the home and hope the next buyer's lender's appraiser gives it a higher value. But there's always the chance the next appraiser values the home even lower. You may need to figure out with your seller how they can get the home sold at appraised value.

Jun 02, 2016 02:17 AM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

And moving on to the next buyer, unless this one has some cash to put into the deal.

And you may want to start exploring ways for your seller to take less, if the appraisal is accurate then the next buyer may have the same problem.

Jun 02, 2016 02:10 AM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

why did you take the listing at such a high price?  buyers buy on comparison....did the buyer realize what he/she was buying? 

either the buyer pays the difference or the seller needs to wait until the market changes...

Jun 02, 2016 03:07 AM
Ambassador
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Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

FHA or VA can stick with the property.  Hopefully this is only a conventional loan and you can give it another shot with another buyer.

Jun 02, 2016 02:14 AM
Rainmaker
1,844,301
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

You're done! Unless it is an FHA appraisal that will stick with the property for 6 months. Buyers need to bring in more down or return the EM.

Seems like this always happens in the spring.

Jun 02, 2016 02:02 AM
Rainmaker
1,725,996
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Time to find a cash buyer. Not much you can do to correct the situation, unless the buyer is willing and able to pay the difference between the sale and appraisal price.

Jun 02, 2016 01:59 AM
Rainmaker
2,707,721
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Sandy Padula and Norm Padula, JD, GRI nailed it with their answer. 

Jun 02, 2016 12:44 PM
Rainmaker
1,617,916
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

buyer comes in with funds or move on

Jun 14, 2017 06:26 AM
Rainmaker
989,652
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Unless the buyer wants to up their price - it's a no go - which is why I always put that clause in my contracts!

Jun 02, 2016 09:05 PM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

It depends who motivated more.If the buyer wants the house, they shall come up with the difference and restructure the funding. 

Jun 02, 2016 05:32 PM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

There could be several ideas and one is the buyer pays the difference

Jun 02, 2016 01:20 PM
Rainmaker
2,362,977
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Interesting

Jun 02, 2016 01:15 PM
Rainmaker
444,170
Dianne Goode
Raleigh Cary Realty - Raleigh, NC
Realtor/Broker

I tell my clients before the appraisal comes in that an appraisal below purchase price has only four ways it can be resolved:  1)  The seller can lower the price to match the appraisal.   2)  The buyer can pay the difference in cash.  3) Buyer and seller can split the difference, not necessariy 50/50 but each pay some portion.  4)  The deal can fall apart.  That's it.  And I've seen all four of those happen.

Before the recession we could get another appraisal and hope it came in higher, but now if lenders have more than one appraisal to consider they are required to use the lower one.  And even worse, an FHA or VA appraisal can't be superseded by a new one for six months!

Jun 02, 2016 12:04 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

It depends on the lender whether they will allow that and whether their underwriter thinks there is justification for a second appraisal. Most sellers bite the bullet and drop the price in our market since buyers are not willing to pay over appraisal.

Jun 02, 2016 11:51 AM
Rainer
225,526
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

Hi Ty, you have a very tough situation here. The sellers, who have been in their house for 40 years, are trying to get the most out of their house, and I'm sure the buyers want to pay the least amount. Buyers are happen with the low appraisal and I 'm sure they would not want another appraisal that shows a higher amount. Yes, going to another lender (providing the rate is the same or better) and getting a new seller paid appraisal might work, but if the appraisal is higher, why would the buyer agree to it? My guess is that it would be a waste of time, for the buyer, unless the second appraisal is lower. Then the seller has a choice to make. The seller needs to come back to reality on their pricing, because if I were the buyer, I'd stick to my guns. As my dad used to say, Homes are like the bus stop, if you miss the first one, there will be another one just around the corner.

Jun 02, 2016 10:26 AM
Rainmaker
2,817,671
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

I think there are some great answers here...assuming that appraisal is fairly accurate and another one would prob be pretty similar.

Other considerations...

Is the market in your area/this segment going up or going down.  If they wait, do you think value will increase or decrease?

I'm guessing they are downsizing if they lived in the house this long?  So, how much are they paying in taxes...and how much does waiting cost (taxes, maintenance).

Where are they moving to?  Are those prices increasing or decreasing?  Are they paying that in case or mortgage?  And, what about interest rates?

It sound like most likely, they will need to make some tough choices, unless the buyer loves loves loves the house and is willing to overpay.

Jun 02, 2016 09:20 AM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Ty here are the options I've seen:

  1. Seller can challenge the appraisal and get a second one issued.
  2. Buyer can pay the difference (more $ down, etc.).
  3. Buyer can walk.
Jun 02, 2016 08:28 AM
Rainmaker
2,781,173
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

If you got any spare bullets around...bite em. If not, use them....lol

Jun 02, 2016 06:52 AM
Ambassador
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Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

The sellers would have to void the contract to put the house back on the market and hope for a better outcome.

Jun 02, 2016 05:31 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Ty Dwyer 1) Seller accepts appraised value. 2) Buyer agrees to pay amount above appraised value. 3) Seller and buyer split the amount over the appraised value and you have a successful closing. 4) Next!

Jun 02, 2016 05:27 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

If the buyer is willing and able to pay more, that's the alternative.

Jun 02, 2016 05:25 AM
Rainmaker
1,239,901
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Agents $ both make up the difference. No compromise no pay.

Jun 02, 2016 03:53 AM
Ambassador
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

You say the appraisal seems accurate but a little low.  I don't know how far off you are ... in the past when I have had a low appraisal ... and I KNEW it was low and there were comps to support a higher appraisal ... we got another appraisal ... and BOOM ... it was at value. 

Jun 02, 2016 03:18 AM
Rainer
321,564
Melissa Jackson REALTOR
Trinity Premier Properties - Azle, TX
Helping You Make The Right Move

I agree with Barbara Todaro The buyer brings more money or  the seller can wait on the market.  Bidding wars place properties in this position. If buyer offered $$ then they saw the value and can pay the difference.

Jun 02, 2016 03:17 AM
Rainmaker
911,338
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Cancel unless buyer has cash and is willing to pay more than appraised value.

Jun 02, 2016 02:58 AM
Rainmaker
292,685
Jack Lewitz
Exit Strategy Realty - Evanston, IL

Whether it's cash or finance a value needs to be determined and agreed upon by both seller and buyer . It appears your seller is not being realistic and I think you may have to remove yourself from this as the selling agent until the sellers come to terms on the value of their home.

Jun 02, 2016 02:37 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

When you took the listing you should have know whether is was 'aspirational' pricing or not.

Many, many, many times I've look the buyers agent in the eye and simply stated, how bad do you want the house?

Other times I have created the justification of the value through the CIS Score.

Other times I simply have to say, this is the cost of living with the history of Babe Ruth.

In all cases I do advise the seller an appraisal issue could exist and lay out the options available at the beginning then stay the course until the seller blinks.

Jun 02, 2016 02:34 AM
Rainer
6,453
Ty Dwyer
First Choice Realty - Richmond, VA
Richmond VA Condo/Townhouse Expert

I was thinking the buyer could come up with more money, or the seller could offer owner financing...definitely thought of the cash angle.  Just looking for other 'angles'  I realize the obvious.

Jun 02, 2016 02:08 AM
Rainer
150,416
Michael Thacker - Re/Max Real Estate Center - Louisville
Re/Max Real Estate Center - The Thacker Group - Louisville, KY
Your best friend who just happens to be a Realtor

I think everyone else gave my answer, sorry.

Jun 02, 2016 02:07 AM