My Crash Course in Real Estate

I just found out that the appraisal on my house came in $11,000 lower than our agreed upon sale price. I wasn't quite sure what that meant but my initial thought that it meant I would get to pay less was off the mark.

My understanding is the bank will only loan me the amount the house is appraised for so I have to make up the difference in cash or negotiate with the seller to meet them in the middle so I would only have to make up half that amount or whatever amount we decide on. We could also try to get the appraiser to bump up his appraisal and since he didn't use the comps my real estate agent gave him, it is possible to get him to bump up his appraisal at least a little.

Either way I have to wait and see what the seller wants to do. They could also negotiate with the other buyer if they are still around and still interested and see what they can get from them. That's not likely to happen since we are just 9 days away from the close of escrow, but if it does I am screwed and have no where to live and have to move in with mom and dad. I am terrified of that outcome so hopefully that doesn't come to pass. It could also work out for the best and I will have a lower mortage payment, but I will still have to put in more cash up front and increase my down payment with help from my parents.

I really want this house and I will be upset if something happens and I don't get it or have to walk away. I will probably be more upset that I will be homeless though, that would be REALLY horrible. I guess things were just going too smoothly so I should have expected something like this. Now I just have to wait and see what the Owner wants to do and for me, the waiting is always the worst part. I like to know one way or the other so I can decide what I have to do to move on. I probably won't hear back for the next 48-72 hours though, so I will probably be a little on edge for a few days.