Yes they can make up the difference with a larger downpayment. But they won't. Again, they are going to run when they hear the appraisal.

 

Or, they will contact another realtor and put in a new offer, one which is about $55k less...
But we all know what Carmen would do with that offer.

 

Can you offer to carry the difference as a second deed of trust, or must you have the cash?

 

I sold my last home in 1999, in Silicon Valley. The Saturday before our first open house, the San Jose Murky (Mercury) News came out with an article about how home prices were over-inflated. Realtors in the area saw a 40% drop in people viewing open houses after that article, and it cost me $25,000 in final sales price. The kicker was the guy that wrote the article was in New York City, and it was his (one man's) opinion alone. I wanted to shoot the editor for running it.

 

I can carry a note for the difference but again, I don't think their access to money is really the issue. They have a house they are going to sell, and when they do, they were going to recast this loan anyway. I think the biggest problem at this stage is they will be frightened off by the appraisal.

 

Then I think it's up to your agent to do his/her job, which is sell your house! Sell them on why it is worth the price they offered.

 

She's done her best. I went to high school with her and she did an excellent job selling my last place. I trust her. She's beside herself too. She said this is her first experience with this situation in 23 years of being an agent. She raised hell with the lender and appraiser but they won't budge. This is why God created a category of people called dickheads.

 

That is exactly right.

In this marketplace, and with all that has gone on in the last few months, the appraisal is going to be what it's going to be. A different appraisal might come in at a few dollars more or less, but you can expect them all to be around the same. Unfortunately, you are selling in a market that is very tough and not very favorable to the seller. I'm not saying that this is right or wrong, but unfortunately its just the way it is.

Your only two choices (aside from dropping your price to the appraisal level) if you truly believe that your house is worth the price and that you can find someone willing to pay it is to 1) wait for that someone to come along or 2)you and your agent have to do a good job on selling the prospective buyers on why your house is really worth the money. All of the points you made to us have to be made to the buyer.

 

Rob,

There is no selling required to the buyer. We have agreed on a price. They see the value in the place and feel it is worth the same amount I feel it is worth. So there is no need to "wait for that someone to come along". They've already come along. And my agent and I have made a case for the house being worth what I feel it's worth. And the buyers AGREED!!!!!!!!!!! Sadly, the appraiser and the lender, because of lack of comps, have polluted the situation and will scare off the buyer. This is the penalty I guess for having a desirable neighborhood where people don't sell/leave (no recent comps). Shouldn't it be the other way around? Shouldn't a desireable/low turnover neighborhood ADD value? I guess I'm still living in the 70's.

 

^ It should add value and it does...the problem isn't the neighborhood. It's the appraisal process, and the apparent stubbornness of the bank. You are the victim of bad luck. I hope it changes.