Real Property Appraisals/Low Appraisal +$15k

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Question
Hi John,  I'm under contract and am a first time home buyer.  I am learning a very dear lesson.  The home I purchased is in Kirkland, WA, a relatively hot market.  I feel I have been taken a huge advantage of by my agent.  I am a newly single mom.  I found a house, wrote up a contract.  My agent said I would not get the house unless there were no contingencies (and I mean none, except hoa minutes-which that window of time passed). And I had to go $25k escalation.  Then she had me sign a low appraisal with $15k over appraisal.  She said the seller would mot accept my offer otherwise.  she also told me to write a $25k earnest money (this house listed at $350k, I am under contract for $375k.)  If the house appraisal comes in low, I have to bring in $15k more.  Now, my mortgage broker says that $15k does not go to down payment nor purchase price nor to lower my loan amount. It gets eaten by the bank as a penalty. Is that true?  Do you have any advise for me? I have nothing to back out or renegotiate on.  Thank you.

Answer
Carri,

I've been in court for the past 2 days and have just gotten back in my office.

I don't know what you mean by: "...Then she had me sign a low appraisal with $15k over appraisal".

Regardless, these financing items are beyond the expertise of an appraiser. We do not deal with these issues.In addition, many of these issues are legal in nature and I am not an attorney.

Because this is your hard earned cash, I recommend that you IMMEDIATELY locate a real estate attorney who can protect and defend your property and loan rights. The attorney will know if what this Agent did is legal and ethical and will help you get your money back if you are being ripped off.

I wish you the best of luck and a Happy Holidays

John C.Carlson
Victorville and Diamond Bar
www.jccrea.com

Real Property Appraisals

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John C. Carlson

Expertise

Any questions regarding commercial and/or residential appraising, appraisals or real estate valuation such as: appraising as a profession, valuation techniques, comparable sales selection & analysis, the new HVCC and how it affects appraisers & Borrowers. Also, questions like: "Why did my appraisal come in low & what can I do about it?" I cannot answer questions about comparable data in areas in which I do not practice. I have expertise in most areas of So. California.

Experience

31-years both commercial and residential valuation experience. State of CA Certified General Real Estate Appraiser, licensed to appraise all property types. FHA Approved. Specialized expertise with historic, architectural & luxury residential property valuation. Experienced in industrial building and small commercial property valuation. Experienced Reviewer of appraisal reports and expertise with intensive forensic reviews to uncover fraudulent appraisal reports. Expert Litigation and Expert Witness experience.

Organizations
Associate Member of the Appraisal Institute. Associate Member of the Certified Fraud Examiners.

Publications
Numerous posts to Blogs. Please "Google" "John C. Carlson Real Estate Appraisals" where a list of responses I have made will show up.

Education/Credentials
Numerous classes by the Appraisal Institute since 1978 in the practice areas in which I specialize

Past/Present Clients
First Republic Bank Wells Fargo Bank California Bank & Trust Preferred Bank Numerous Attorneys.

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