Industry NewsNews Brief

Low appraisals sabotage more deals

From TheRealDeal.com
Published on Aug 26, 2009

Editor's note: Reposted with permission from TheRealDeal.com. Click here to view original post. By CANDACE TAYLOREdward Milton Cisneros, a real estate agent at New York Living Solutions, was surprised recently to receive a panicked phone call from a family he is representing in the purchase of a Long Island City new construction condo. The buyers said the appraisal for their new home -- a two-bedroom and studio they planned to combine into one unit -- had come in far below the agreed-upon purchase price. "I got an alarmed phone call from my buyer," Cisneros recalled. "The bank was questioning why they were paying so much."The low appraisal threatened to kill the sale, he said. The bank would now lend only up to the appraised value, and there was no telling whether the buyers would be willing or able to cough up the extra cash needed to close the gap between the appraisal and the agreed-upon price. Luckily, the developer was anxious to close and the two sides...

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