Reply to Anybody bought at house without an appraisal contingency?

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[quote=Anonymous][quote=Anonymous]Bad idea to drop appraisal contingency.  Even if your LTV is very low, bank may not fund the loan if the property does not appraise for contract sales price.[/quote]

This advice is right-on. We bought last year. List price on the house was 500K. We offered low, based on the fact that my realtor thought the home was overpriced majorly. But we LOVED the house and had been looking for a year. We eventually negotiated an contract price somewhere in between list and our offer. Our realtor told us that, right now, appraisals are coming in WAY LOW. Across the board, in expensive homes, in not expensive homes. the foreclosures all around are completely screwing up the comps, and what's more, the lenders, appraisers, and real estate agents are not allowed to communicate in certain ways anymore, so nobody knows one another and you can sometimes end up with an appraiser from, say, Baltimore, coming down to appraise your home in Mount PLeasant and getting crazy sticker shock. This is what happened to us. Our appraisal came in a full 40K lower than our contract price. THANK GOD we had an appraisal clause, because your earnest money and other issues are going to be caught up in it (and if you DO want to look attractive to a buyer, throw a large, large amount of EMD into the mix -- to my mind that will get their attention more than the no appraisal clause will). Anyway, we eventually agreed to meet halfway and come up 20K, but our lender would NOT ALLOW US to do this! And we had 20 percent down and near-perfect credit ratings. So the seller ended up coming down even further. The thing is about other offers is.......there are other houses too. We got ours, and I love it, but life would have gone on if we hadn't.

Good luck! It's so frustrating to wrangle over things when you really like a house. Remember that the seller's agent has to be honest about HAVING other offers, but does not have to specify -- they might be way low and she / he may be full of shit!!!! [/quote]

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