Sacramento

[MustLoveDogs]

We made an offer on a short sale (one loan with Wells Fargo) about 3 months ago. The short sale has not been approved yet and this week the bank did an appraisal instead of a BPO. In the past 3 months, we believe the home value has decreased based on recent home sales. What happens if the bank's appraisal comes back lower than our offer? Will the bank lower the approved short sale price?

[NorCalRealtor]

Usually the only way the bank will LOWER an offer price is if the BUYER sends in a VALUE DISPUTE PACKAGE due to the BUYERS APPRAISED VALUE comign in lower and they are nto able to complete their new loan at the HIGHER Contract Purchase Price. Your Buyers Agent who helped you submit your offer should have more info on how the VALUE DISPUTE works. 

Not sure you area BUT most of the greater Sacramento Area is INCREASING IN VALUE over the past few months. What area are you looking in?

[JulieS]

The banks appraisal shouldn't be too far off of what a bpo would've come in at.  I do bpo's all the time and we use the same comps.  Wells may never tell you what their appraisal came in at - they don't have to.  They may approve your short sale and then wait to see what your appraisal comes in at before they offer anything at all.  With prices on the rise in the Sacramento area but comps not yet keeping up you might get away with a lower price, but I wouldn't bet on it.  I recommend working with the terms you get and negotiating if necessary.

Hope that helps,

Julie S.

Redfin Broker