Replies to This Discussion

Permalink Reply by ElizabethWeintraub00697006LyonRE on August 12, 2015 at 12:17pm

I have a sneaky suspicion that the investor on this transaction is probably Fannie Mae or Freddie Mac because otherwise you would most likely be involved in an auction situation, and it doesn't sound like you are. Plus, I should add the last time I had my house re-stuccoed it cost $2k for about 2,000 sq. ft, but maybe it's expensive where you live. It appears to me, and I could be wrong, that the problem is not so much the sales price as it is the buyer's lender's appraisal.

With Freddie and Fannie, they don't necessarily base the purchase price on an appraisal. It's often computed on whether it's financially more prudent for them to do the short sale and meet a bottom-line net or to go through foreclosure. Although, I have had better luck with Freddie. I suggest you get at least 3 bids, submit an addendum (in which you can talk extensively about the work required and have buyer & seller sign the price adjustment addendum), submit with a new HUD. When you are a buyer's agent, that's how you talk to the lender. Through the addendum. Good luck.

Permalink Reply by Ray Sande on October 2, 2015 at 7:24am

The seller agent needed to list the house at the appraised value set by the bank.  Sound like an example of the seller agent guessing what the sale price should be and not the bank's determination off of the appraisal.  My advice is to go to the seller agent who is most likely on the 3rd party authorization and request a new appraisal interior and exterior and detail the issues of the home and have the seller agent or processor present at the time of the appraisal.  Also have the seller agent get a short sale authorization from the bank with the list price set by the bank via the appraisal.  It just makes it so much easier.  Hope this helps.