Help! In the final stages of closing a house purchase for $330k. Appraisal came at $311k ~6%less than the sale price. I myself planned for only 5% down on the original sale price. Contd...

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Renegotiate with the seller, come up with the extra cash, or walk away. Only options there are

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Ask them to reduce the price. This is not a bad thing

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This is why you don’t buy a house tapping out all your resources...wouldn’t dip into retirement funds at all

See if you can get a personal loan

likesmart

Yes wouldn’t recommend buying a house that puts your savings at zero...need buffer for house maintenance, life...

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This is the reason one has an appraisal contingency. You go back to the seller and negotiate a lower price. Get your agent to do their job and negotiate for you. The seller is just as screwed as you as it is going to be hard to sell a house over the appraised value.

likesmart

True story.

House is in a seller's market near Atlanta. Very good area. What to do?

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Yeah don’t be house poor man

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You’re house poor before even closing on the darn thing...hope you can get the price down or get a loan to hold you over.

If I couldn’t do those, I’d keep looking because I wouldn’t dip into retirement accounts

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I had similar situation in Boston suburbs in 2015; we put our offer against an exploding offer 6pm same day of first showing. Bid $475; appraisal came to $460 (list was $439). We were planning to pay 10% down, so my realtor did all the negotiating, and we agreed to $1.5 extra (10% of the $15k difference). Seller came nearly the full way down because what else are they going to do? We were in a bidding war (highest bid was $485, but they liked our finances best), and they clearly didn’t have an all cash offer (Eg, why choose between two financed offers if you could take cash and be done). The other bid also wouldn’t have the extra money to front the gap, probably wouldn’t be eager to drop an extra $15k for fun, and they knew our intended finance structure. It’s hard to insist we should have extra money sitting around and start the biggest purchase of our life underwater. IMO, You’re actually in a fairly strong position. They also probably REALLY want to sell their house.

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I only know my situation. You should consult your realtor for advice and leverage them to do the negotiation. In my case, I only paid 10% of the gap and the selling price came down; we could have decided not to budge at all but didn’t want to be complete assholes. It was an extremely strong sellers market in our case too. My realtors tact was “my buyer has 10% cash available for the offer, and no more. We’ll respect the gap between appraisal and offer by covering 10% in cash, and unfortunately there is no financing to fill the gap. So tough.”

Wait are you seller or buyer?

Buyer.

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How much do you love the house?

OP, don't do it. If they won't come down walk.. you'll have buyers remorse.

This will affect your mortgage, insurance, and taxes..

I faced the same thing 2 years ago and I was ready to walk. They came down and actually it was the price I'd originally offered. Lol

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One more problem: I timed my rent payments to end right before my mortgage starts and gave my notice to my current landlord.🙆‍♂️🤦‍♂️

Don't talk yourself into it because of a current lease. You are stressing yourself into a decision. Step back, think about it. Push back and tell them you'll wslk if they don't come down.

If neef put your stuff in storage and couch surf til you find a new home. But don't make an emotional decision. You have to live with this for the next how many years? You don't want to have buyers remorse.

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Which area in Atlanta ? Atl real estate is hot right now. A friend paid similar higher than appraisal in Sandy Springs.

Near Johns creek/Suwanee. Amazing school district. Hence had to offer a bit aggressively and bind within 3 days of listing.

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