Real Estate Law
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I found a house in Broward County I was interested in purchasing. I asked my realtor if I needed an appraisal. She stated it was not necessary because I was paying cash. I applied for a VA loan and the appraisal came in at $345,000 versus the accepted offer of $565,000. The contract called for a non-refundable "good faith" money of $56,500. Is there any way I can cancel the contract and receive the $56,500 back? Should the realtor better represented my interest by agreeing to have an appraisal? I feel she is so anxious to make a sale that my best interests were not served. XXX XXX
There was an inspection contingency in the contract but it has expired. We do not understand why the appraisal was so low. There were no comparable sales in the immediate neighborhood and the appraiser did not use the comps he asked my realtor to provide. He asked her to provide comps of other nearby golf course communities but then did not use them. This community is primarily condos with a smaller number of single family homes. I was planning to pay cash when my house here in Md. sold but it has not sold yet so I need a loan as a back-up. Quicken loans has asked for another appraisal but I would have to use conventional financing if it comes in higher. My problem is coming up with the $171,000 at closing (the difference between the appraised amount and therefore the VA loan and the selling price).
I feel my realtor was not looking out for my interests. She discouraged me from putting in a contingency to sell my home because "the seller will probably not accept this and sell the house to someone else." This is in addition to replying to my question about an appraisal that I didn't need one because it is a cash sale.
My question is: Would it be of benefit for me to file a grievance with her firm indicating I do not feel she represented my interests by not protecting me from a low appraisal? Also, would it be of benefit to file a complaint with the Fla. Board of Realtors?
I would still be interested in buying the house if my house sells. It is on the market for &745,000 and we do not have any mortgage or liabilities. Also, if the appraisal were higher I would not have a problem coming up with the additional money needed to close. I have put $56,500 on deposit and still need to come up with $171,000 to close because the appraisal was for $345,000 and the sale is $565,000.
Thank you so much. I am very relieved and now feel I know the right course of action to take. Wonderful advice. Steve
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