Posted by: Meena Gujral | May 7, 2008

I recently made a $1.6M offer on a Mission San Jose home in Fremont. The lender’s appraiser came in with a value that was about $200K less than the purchase price.


Well, you have four choices:
1. Back out of the deal.
2. Negotiate with the seller for the $200K.
3. Negotiate to split it to $100K from both sides.
4. Have your Real Estate Agent Get another opinion from another appraiser and then decide.Sometimes there are appraisers that are not from the area and do not know the property values. For example in Hayward property values are down from last year by about 30 % whereas Fremont has gone down 6% according to the stats received yesterday. Mission San Jose California has kept its value and has hardly gone down in value at all. Even though Hayward and Fremont are very close in distance, the property value difference is huge. So if this appraiser is not familiar with the area, he will not understand Fremont values as much.
Also an appraisal is one persons view or opinion of the value in the area. I hope you received the comparables when you put in the offer with your agent, so you should be able to see if the price you had offered at that time was a fair price.
When the loan amount is over a million dollars, most banks want to see at least two appraisals. The lenders want to use their own appraisers and they could have a tough time justifying the price in today’s market.

Will you still be able to qualify for the loan with the $200K difference in appraisal value? The bottom line is do you still want to buy the house? That is the question you need to ask yourself, since as you know, you can back out based on the first appraisal.

If I can be of further help, please let me know.

For a list of Fremont Homes for sale, Real Estate listings, California Real Estate go to or contact Meena at 510-279-9580.

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To see the real Estate Blog for Fremont click on Meena’s Blog in Mission San Jose, Fremont


Meena Gujral

Help-U-Sell Achievers Realty

Fremont, Ca 94539







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