Mortgage Blog

Low Appraisal value, good or bad?

June 28th, 2011 6:40 PM by Eric Fang

I am working on a purchase loan in Sacramento for about
two weeks. And the value is 10k lower. It's about 4%
lower than purchase price. It was so hard for us
to get most of the conditions cleared when the borrowers
were on the cruise. Now It's up to the buyer/seller
to decide this transation.

Another purchase loan in stockton, the value is 7k
(about 5%) lower. Borrower wants to ask seller to
lower the price; Another in Sacramento, appraisal
value 4k lower, seller lowered the price.

Seems like the value trend in Sacramento, Stock area
still going down, maybe for another year.

It's hard to tell whether lower value is good or bad.
For those whoes seller willing to lower the price is
good; for others, borrower will either have
more down payment or back out the deal.

Posted in:General
Posted by Eric Fang on June 28th, 2011 6:40 PM



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