I got a low appraisal from an FHA buyer. Since it stays for 120 days I decided to drop the price. Now I think I may have goofed. Let's say you have a contract for 105k and the app comes in at 100k. Does that mean before or after the down payment? In other words would you drop the price to 100k or 103500 since they would only be borrowing 100? Thanks
The appraisal sets the upper limit for the purchase price, not the loan amount, than can be financed. The FHA appraisal won't affect non FHA buyers.
I wouldnt sweat a couple thousand to close the deal. How long has it been on the market and how low do you consider the apprasial? Just to make sure I understand, you agreed to 105k and it came back at 100k?
The 3% equity puts the loan at 97K, costs may be included depending on the program.
Like Wayne mentioned, you don't have to drop the price going conventionally, but don't expect another appraisal to be far off the one you got. You could get the same appraiser too. 5K is 5K, but I'd rather price it right and move the place than hold it trying to get more. :)
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