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Buying or Selling a Home/appraisal is not what purchase price is
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Question
My husband and I have not closed on our home but our builder is discounting lots 50% in this sagging market to drum up business. We are certain our home will not appraise for the selling price given the fact they triple charged us for all our options. Can we approach the builder for a lower price? Should we contact an attorney?
KATHY--
Not closed, but with a Contract, I assume! Sure, you CAN approach the Builder and try to renegotiate the contracted Sale Price,but my experiences with General Contractors over the past 30 plus years tells me that he/she won't be very open to lowering the price.But I wouldn't try negotiating with the General Contractor before checking things out with an Attorney!
So...you see, certainly I think you should contact an Attorney to help you resolve this issue.Without legal advice & assistance I think you're either going to be stuck with the contracted price OR you "walk away" and lose Earnest Money Deposits, perhaps get hit with other "penalties!" UNLESS you go through with the transaction at the agreed-upon price! A Lawyer may be able to work out a lower price as a "Compromise" to avoid litigation between you and the Builder!
My answer above is based upon the current Appraisal establishing a Value equal to the contracted Sale Price--BUT if the Appraisal comes in/came in at a lesser value than that of your Agreement with the Builder, "it's a whole different Ballgame!" You MAY have an "out" via a "Financing Contingency" in your Contract with the Builder. Once again, however, you should seek the advice, guidance & assistance of an Attorney who specializes in Real Estate matters!
GOOD LUCK!
--JIM ROOT
CRA, RMU, CRO
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Jim Root
Expertise
How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!
Experience
Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!
Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).
Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.
Education/Credentials
Associate Degree in Real Estate Studies plus:
Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years.
Bachelors Degree in Mass Communications,
Masters Degree in Education/Teaching
Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.
Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!
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