Recently signed a contract on a home. Stated to be 2750 sq ft custom built, two car attached, 36' x 24' detached work shop, and 11 years old.
Selling price is $315,000. Based this amount on owners market analysis, real estate agents opinion who would be listing my current house and the mortgage person (brothers mother-in-law) who was handling my loan. I took the house plans and measured the square footage at a little over 2700 sq ft.
Mortage agent wrote up my contract $315,000 selling price. $100,000 down payment. $1000 earnest money. Contingent on aquiring loan and meeting appraisal.
This is where it gets interesting. On the day of appraisal I get a call from the mortgage agent informing me that appraiser is on location and has called her to tell her it won't appraise for selling price. His estimate is $270,000 on 2510 sq ft. She tells me she has "stopped him" and recommends another appraisal/appraiser. I am told I will only owe him $100 for going out to the house.
On the second day, I get a call telling me that the second appraiser has measured the house at 2532 sq ft (218 short) but has appraised it at the exact selling price of $315,000 which is a whopping $124 per sq ft exceeding anything in our market I have seen. His comps are two and three year homes in much more expensive neighborhood and even they sold for below $110 per sq ft. Has he just "hit the number"?
I asked my mortgage person to request the first appraiser to finish his appraisal to help me determine the actual value of the house.
She calls me back and says the first appraiser doesn't want to finish his appraisal and "butt heads" with anybody. Says I no longer owe him the $100. She recommends a third appraiser who can perform the "second appraisal"
At the last minute (now fearing a second high appraisal) I asked her for the original appraisers phone number to call him and see why he won't finish his appraisal. She gives it to me but says she needs to call him first. Three minutes later she calls me to say he will finish the appraisal.
What is going on ?
This is the second home I have bought in 20 years. I know I have made some mistakes but I tried to do my homework. I have asked for advice from people I should be able to trust. I will be paying for both appraisals.
Should I try to renegotiate based on the drop in square footage?
If the deal falls through are the owners entitled to the earnest money based on appraisals?
Can I get a review of the high appraisal?
Thanks for reading and any help you can give.
knopf
Selling price is $315,000. Based this amount on owners market analysis, real estate agents opinion who would be listing my current house and the mortgage person (brothers mother-in-law) who was handling my loan. I took the house plans and measured the square footage at a little over 2700 sq ft.
Mortage agent wrote up my contract $315,000 selling price. $100,000 down payment. $1000 earnest money. Contingent on aquiring loan and meeting appraisal.
This is where it gets interesting. On the day of appraisal I get a call from the mortgage agent informing me that appraiser is on location and has called her to tell her it won't appraise for selling price. His estimate is $270,000 on 2510 sq ft. She tells me she has "stopped him" and recommends another appraisal/appraiser. I am told I will only owe him $100 for going out to the house.
On the second day, I get a call telling me that the second appraiser has measured the house at 2532 sq ft (218 short) but has appraised it at the exact selling price of $315,000 which is a whopping $124 per sq ft exceeding anything in our market I have seen. His comps are two and three year homes in much more expensive neighborhood and even they sold for below $110 per sq ft. Has he just "hit the number"?
I asked my mortgage person to request the first appraiser to finish his appraisal to help me determine the actual value of the house.
She calls me back and says the first appraiser doesn't want to finish his appraisal and "butt heads" with anybody. Says I no longer owe him the $100. She recommends a third appraiser who can perform the "second appraisal"
At the last minute (now fearing a second high appraisal) I asked her for the original appraisers phone number to call him and see why he won't finish his appraisal. She gives it to me but says she needs to call him first. Three minutes later she calls me to say he will finish the appraisal.
What is going on ?
This is the second home I have bought in 20 years. I know I have made some mistakes but I tried to do my homework. I have asked for advice from people I should be able to trust. I will be paying for both appraisals.
Should I try to renegotiate based on the drop in square footage?
If the deal falls through are the owners entitled to the earnest money based on appraisals?
Can I get a review of the high appraisal?
Thanks for reading and any help you can give.
knopf