Zillow question from Buyer…my response
I occasionally read the questions that buyers post on Zillow. This one caught my eye because this buyer knows that he is in trouble. But I want to respond in this blog so that others do not make the same mistake…
THE ZILLOW QUESTION FROM BUYER:
I’m a Buyer…and the appraisal came in low
My Buyer Agent Response:
Dear Home Buyer,
Yes, your biggest mistake was not getting your own agent. While you say that the agent is trying to make both of you happy, that is not what you need. You need a buyers agent to advocate your position to the sellers. You are for sure on your own, so you will need to negotiate this by yourself.
I recommend that you insist the seller reduce the price of the property to the appraised value. Hold their feet to the fire, and see where their bottom line is. Remind the listing agent that a short appraisal is a material fact that needs to be disclosed to the next potential buyer (which will scare off the next buyer) and more than likely the next deal will also have an appraisal shortage.
No, you do not have to buy it at the sales price…unless your contract waived your appraisal contingency or your financing contingency. In that case, if you bail, you may loose your escrow deposit. Since you do not have an agent that you can call your own, it is time to read your contract and see what you really agreed to.
To answer your question: the seller can reduce the price to appraised value, or you both can meet in the middle, or the seller can refuse to do anything. Depending upon what contingencies you have in your contract and how much extra cash you have to pay for the appraisal shortage out of your pocket, that should determine on how you need to proceed.
To all those future home buyers reading this Zillow question from Buyer….next time hire an Exclusive Buyers Agent that gives home buyers 100% loyalty. No games, no double talk, just an smart buyers agent that works solely for you. 407-539-1053