Buying a short sale property and it didn’t appraise! Help for San Diego Condo and Home Buyers.
This is another FAQ I get from buyer clients… Believe it or not, many desireable San Diego condo and home listings are not only getting multiple offers but are being bid up with the help of the listing agent. Yes… bid up on the price. If buyers want to be the best and most attractive offer on a home then they often overbid with the chance that it will not appraise once in escrow. And the point is just that… to be the buyer that gets into escrow. And this can bring up a question: If the property you’ve made an offer and opened escrow on is a short sale listing and the bank has approved your offer price, then what happens if the property appraisal comes back low? The answer is the same as if you were buying this home or condo from a normal seller; you will need to go back to the decision maker – the current lending bank(s) - and request a new short sale approval at the appraised price. This will absolutely delay closing as well as your loan approval (as can 10 other possible hiccups in this market). The bank(s) may reduce the amount of sales proceeds going towards back HOA dues, taxes and other liens. But usually a low appraisal can be worked out.
Tara Steinke
Residential Sales and Appraisals | Managing Associate, Solant Real Estate Advisors
619-384-6014
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Tara is your San Diego condo and home expert - For buyers and sellers alike, her extensive experience, including work as a professional Real Estate Appraiser in the San Diego area provides a unique perspective in negotiating the best deal for her clients, and gives those looking to buy or sell a San Diego Condo or Home the peace of mind that they will be positioned effectively in today's changing real estate market.
Tara is Licensed by the CA DRE#01426882
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