Appraisal come back $400 short

9 Replies

I'm in a buyer market. Buyer is using VA loan. The appraisal come back $400 short. My agent said it's obligated to lower price in that market and buyer wont ask but they expected me to lower price. I'm already agree to $700 credit on repair plus other repair requested. What is my option other than to lower price?

assuming you are selling to make some serious $$$, seems silly to jeopardize it for peanuts

Originally posted by @John Lee :

I'm in a buyer market. Buyer is using VA loan. The appraisal come back $400 short. My agent said it's obligated to lower price in that market and buyer wont ask but they expected me to lower price. I'm already agree to $700 credit on repair plus other repair requested. What is my option other than to lower price?

I am in a buyer's market and a buyer actually using VA loan. Unfortunately for you, there is no way around it. The VA lender will not give me the funds if the appraisal is even a dollar short and the price is not re-negotiated.

I'm only making $5000 on this flip ( less than the realtor and worse than just keep my money in the stock market)

Originally posted by @John Lee :

I'm only making $5000 on this flip ( less than the realtor and worse than just keep my money in the stock market)

Unfortunately, all of this is sunk cost.  I would lower $400.  Sell and move on.

@John Lee I’ve purchaed 3 homes using VA lending. Very good for the vet, leaves the seller with a bit more of the bill . The VA will not lend above the appraisal value. You can come off the sale $400 or walk away from the deal and hope the next buyer brings more conventional lending.

In SFBA all accepted transactions have the no appraisal condition. The buyers are expected to pay the difference if he wants to be considered.  This means if he can not afford $400 the buyers are not performing and it is up to the sellers to keep the deposit ore reject the offer.

My question is why you even bother with VA loan offer paying everything. People will not touch offer with VA with a totem poll. Here it is 99% conventional loan and 1% FHA on condos.

Originally posted by @Anna Buffkin :
Originally posted by @John Lee:

I'm only making $5000 on this flip ( less than the realtor and worse than just keep my money in the stock market)

Unfortunately, all of this is sunk cost.  I would lower $400.  Sell and move on.

 Perfectly put.