Posted by: Meena Gujral | August 13, 2008

Appraisal in Mission San Jose came less than Purchase Price

Well, you have four choices:
1. Back out of the deal.
2. Negotiate with the seller for the appraised value.
3. Negotiate to split it between both sides.
4. 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 bayeast.org stats received yesterday. So 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 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.

To find a Real Estate Agent, Real Estate Property Listings in Fremont California, Homes for sale in Mission San Jose or information about Mission San Jose Schools, please contact me and I would be happy to help you.

Thanks

Meena Gujral
Help-U-Sell Achievers Realty
40083 Mission Blvd
Fremont, Ca 94539
510-279-9580

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