Expert: Sue Bernstein - 3/26/2009

Question
We are purchasing a new construction condo in Murrieta, CA.  We have been informed that the appraisal came in low.  We were to move in on 3/28, now they are saying they have to wait for other homes in the area to close so they can get additional comp's to up the value.  Is it legal for them to put us off until they are ready.  We have given notice to vacate our rental on 3/31.  Legally, what can we do?

Answer
Tony,

The appraiser is not finding comps to justify the price you are paying therefor the bank will not give you a high enough loan.  Your options are to pay the additional amount in your down payment, try negotiating with the builder to lower the price to the appraisal, cancel the sale or wait and see if future sales will justify your price.  Banks are being more careful these days in light of the mortgage mess.  You can also check with your lender and see about getting another appraisal.
I hope this helps.

Sue Bernstein