The Appraisal came in short

We are a week before closing, and my beautiful buyers, who are pre-approved FHA first time home buyers have completed all inspections and are just waiting for the appraisal report.  It comes back $7,000 less than the purchase price my buyers were willing to pay. It didn't appraise.

Everyone is freaking out!  Especially since the sellers don't want to sell for the new appraised price.

Listen in to all the conversations surrounding this matter.

Do the seller know that the appraisal report follows the property for six months? That anyone getting a loan on this property, the appraisal will pop up?

The price of this house is priced for a first time home buyer who will more than likely buy FHA.

Are they going to take the house off the market for 6 months to wait out the appraisal?  That will be September going into winter? What? Are they crazy? 

Are the buyers willing to pay their own closing costs?

The sellers want to wait for a cash or conventional buyer! Do they realize the buyer would have to put 5 percent down?  Do they realize no buyer is going to pay more than the property appraised for.  Who's bringing cash? This is not an investor property.

Does the seller know that if the appraiser marked that this is a declining market, an over supply of housing and excessive days on market, it will get kicked to an FHA loan anyway?

Well needless to say everyone is still bummed out.

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email dwilson@cutlerhomes.com for all the real estate news in Canton and surrounding areas.