Once the price and terms are negotiated and you're under contract for the purchase of your new home, one of the next steps is your mortgage person will order an appraisal to determine that the home is worth at least the contract sales price. We Realtors breathe a lot easier once the appraisal comes back, as appraisals are so subjective.
If the appraisal comes in lower than the contract price, your lender will inform you, the buyer, that the value came in less that the sales price. The lender cannot loan you more than what the appraiser says that it's worth. Here are three very real options -
1 - The seller could lower the sales price to the amount of the appraisal;
2 - The buyer and seller can meet somewhere in the middle and the buyer could bring more money to the title company on the day of closing, or
3 - The buyer and seller can cancel the contract.
The seller may just take their property off the market in hopes that values will increase and they try it again later.
If the buyer is an FHA buyer, the appraisal "sticks" to the house for up to 6 months.
Right now is still a busy time in real estate.
It's a really great idea to use a Realtor for your home search and negotiating a contract. A Realtor is a professional that will take your purchase seriously and be there for you each step of the way.
That's what I do as a Realtor in the Tampa Bay area and I'm passionate about what I do. I'm there for you during your home search, contract negotiations at your direction, writing the offer, being there for your mortgage person, the home inspection, the final walk thru, attending your closing, and handing you the keys when everything is complete at the title company.
If you drive by a home and you have a question about the home, even if it’s a For Sale by Owner, please send the info to me so that I can get all of your questions answered. I'm here for you.
I'll be there for you -- if you're a first time home buyer, moving up to a larger home, downsizing, if you're relocating to the Tampa area for a job transfer or transfer to MacDill AFB, if you're moving to Tampa for a retirement or vacation home, if you're an investor. I am experienced in all areas.
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catiHere for all of your Real Estate Needs in Tampa Bay Florida,
Coldwell Banker Residential Real Estate - North Tampa Office
Call me on my cell phone 813-624-3332 www.TampaHomeBuy.com