Thread: First Time Home Buyers... Need Some Advice/Help!

(cont) where the issues began. We soon after got a call from our mortgage guy who was very worried with the situation as the house does have a walk in basement with 2 of the 3 bedrooms and one of the baths being located in the basement it may only be appraised as a 1 bedroom house. We were never informed from our real estate guy of this below grade bedroom situation prior to us signing on the offer. We are now being told that if the lender schedules the appraisal and it comes in lower then what we offered, not only will we lose out on the house (assuming the seller doesn

(cont) (assuming the seller doesn

We were never informed from our real estate guy of this below grade bedroom situation prior to us signing on the offer. -That's probably because to your Realtor it's not a "situation". They are not expected to know specifics on or if or why or why not a ______isn't cool with zoning. Zoning laws change sometimes in some communities, overnight. If the town council doesn't like someone owning horses all they have to do is change the acreage requirements to own livestock.


We are now being told that if the lender schedules the appraisal and it comes in lower then what we offered, not only will we lose out on the house -Check your offer. On the Offer to Purchase, there's a section where your Realtor should have placed "home must appraise for sale price". That's your out if it doesn't appraise for your offer amount. If he didn't well, maybe the seller will accept your offer anyway. It'll all depend on how bad he wants to sell.

Good luck now.
CM

Appraisers have a different set of rules than most agents live by. If it has 3 legal bedrooms most people consider it a 3 bedroom home. But appraisers are sometimes not allowed to acknowledge below ground bedrooms and bathrooms.

Totally stupid, but it's part of the business.

Also, the appraisal business is very topsy-turvy right now because of the tight lending requirements and the lower home values.

Appraisers have a different set of rules than most agents live by. -Exactly. As my music professor would say. We don't have to measure each room unless it's an attic and the roof comes down a slope, etc.

If it has 3 legal bedrooms most people consider it a 3 bedroom home. -Right. If it's got a closet: it's a bedroom.

But appraisers are sometimes not allowed to acknowledge below ground bedrooms and bathrooms. - Sometimes is right. If there's hard-wired heat and finished walls, it may be considered a bedroom. Then again if the lower level has an egress and has a bathroom and a heat source, like propane, it'll be considered an in-law suite. It depends on the size. And since most banks are authorizing drive by appraisals, the consumer's f**ed again. Surprise, surprise. Yeah, appraisers have to do their job but the banks make up their own rules. Surprise again!

Totally stupid, but it's part of the business. -Yes. Totally stupid.

This is not a zoning issue.

It doesn't matter how mant closets a room has, it is not a bedroom if it doesn't have a way out (egress). If there is a fire at the top of the basement steps then the people sleeping downstairs have no way of getting out. A full sized window meets this qualification. Ever see a bedroom without a window? It wasn't really a bedroom.

If the appraisal comes in short and the seller won't give you your earnest money back then one or both of the agents should. This house should not have been advertised as a 3 bedroom and if you had your own agent, they should have known better. This is not some new rule. This is common knowledge and the agents involved are responsible.

If you run into problems contact your state real estate commission and file a complaint. Not the realtor association because they can't do anything.

It doesn't matter how mant closets a room has, it is not a bedroom if it doesn't have a way out (egress). -I see. I've been told up here in NE Pa, that to be considered a bedroom, all it has to have is closet/storage space - crawl space in a hallway, enroute to a room with windows (on the 2nd floor) is considered a bedroom. If said crawlspace didn't exist: it's a den regardless how many windows the room has.

If there is a fire at the top of the basement steps then the people sleeping downstairs have no way of getting out. A full sized window meets this qualification. Ever see a bedroom without a window? It wasn't really a bedroom. - I follow. If the lower level is a lower level and has windows or a way out and a bathroom, up here it's an in-law suite or mother/daughter. Not really a "bedroom" by anyone's standards, the living quarters are as long and wide as the upper level.

If the appraisal comes in short and the seller won't give you your earnest money back then one or both of the agents should. -Ah man. Good luck getting blood from a stone. It sounds to me though the seller wants to get rid of it, there's still that chance too.

This house should not have been advertised as a 3 bedroom and if you had your own agent, they should have known better. -Known better than what? His agent (if he had one), to say "No, no, no, this isn't a bedroom"? Maybe the buyer didn't say that he was looking for a bedroom in the basement. Maybe the pending sale went something like this: "Wow, this is nice, ok, nice floors, ok, I like the foundation, ok, nice price, ok, close to ______." Then he made his offer.

This is not some new rule. This is common knowledge and the agents involved are responsible. -What's common knowledge? What can be considered a bedroom? Again, maybe the buyer was winging it or he didn't say anything. Responsible for getting him his deposit monies back? Good luck with that. Responsible to read the man's mind? Again, maybe he didn't say anything to make them even think he wanted or didn't want a bedroom in the basement.

If you run into problems contact your state real estate commission and file a complaint. -What's the complaint going to say? If the buyer didn't speak up with the criteria he was looking for or didn't have an agent (which I don't think he had), but let's assume he did, what will it say? See, this is why we agents record everything the buyers' say. This way, they can't "file a complaint" and make up the facts as they go. I'm on the agent's side on this one man, assuming he had one. I don't think the buyer said anything to anyone because he wouldn't have known what to ask or say. He liked the house and made an offer, that's it. It could have been this simple.

CM

Oh well... at least now I undersatnd why when you are looking for a 2-room apartment to rent yuo are always finally suggested a huge place with too many rooms and unexpected nooks =)

Good time to buy a house for ya given the current market... my advice would to be to get a home inspector...some can be pricey (a few hundred bucks) but its well worth it.
other than that just be sure to check the county web site. find out what the houses are selling for in the particular neighborhood - check out the house u like and compare to average price of the neighborhood.