Back out of ratified contract?

[awtomlinson]

I live in Virginia & am in the process of buying my first home. My question is, once a contract has been ratified, can I back out of buying the home without legal penalty? I am VERY unhappy with my realtor. A list of needed repairs after the home inspection was submitted to the seller after the expiration date, so while the repairs are minor, the seller will not pay for any of it. Second, I feel greatly mislead by my realtor. I was told that I was getting a great deal & that the home would appraise for far more than the purchase price. The appraisal value of the home is only $1,000.00 more than the purchase price. Plus, I was told that I should not ask for closing assistance because of the "great" deal that I was getting. I am certainly not getting a bad deal, but in the current housing market, I know NOBODY who has either paid full asking price or closing costs. I have also heard that appraisal values are typically 10%-20% lower than what I could reasonably expect to sell a home for. Is this true? Thanks in advance to anyone who can answer my questions.

[Rich_in_CT]

You like the house enough that you signed a contract. You thought the house was a fair price when you signed and you can obviously afford it. Why back out of the deal? I don't see why you should worry about the appraisal if its within reason of the purchase price.

[Rowen]

Northern VA is very much a buyer's market (and has been for some time now).

It would be very difficult to cancel your contract without contingencies unless you're purchasing in an HOA community, for example (consult an attorney if you need to).

From what I understand, appraisers are evaluating current sales very closely. They're using the same information available to your Realtor® (in a market that's shifting downward). I've seen dramatic movement (and subsidies) in the TH community especially, and foreclosures are more common in that price range. Days on market is also something I evaluate when counseling my clients.

Rowen
Licensed in VA

[IggysListing]

There is a lot of misrepresentation out there, especially from the media.
Buyer's market is a generality. Real estate is always affected by location
and timing. In Charlotte NC it is not uncommon (I mean now) to pay more
than asking price. Of course it depends on location.
Appraisals are meant to reflect fair market value based on recent comparable sales. I do believe that a competent real estate professional
can come closer to realistic sales price because they are generally more in
touch with market conditions.



__________________________________

http://IggysListing.com

http://HomeRanks1.com

[gjtrafl]

Don't let the appraisal scare you off...

The appraisal value of the home is only $1,000.00 more than the purchase price.

I am always amazed at the way appraisals go. The first thing the appraiser asks for is a copy of the contract (seems like getting the answers to the test before taking it). These reports are really more about protecting the lender. That being said, they will always appraise the home for just over the agreed upon price unless they think its being sold too high and therefore putting the bank at risk.

[IggysListing]

I agree, sad but true.

[rob22911]

I agree as well