Low appraisal for first time home buyer?

Question

I am attempting to purchase my first home in North Texas. The house is listed at $87,000, we agreed at a price of $79,000 and the appraisal came in at $72,000. My agent feels the appraisal is too low, and their agent will do another appraisal and "help" with the cost of that appraisal. The sellers are not willing to come down to the amount of that appraisal. Should I pursue another appraisal, or just stick with my guns on this one? Any advice would be greatly appreciated. Thank you.

Answer 1

2 parts to this answer.  Sometimes the low appraisal is your formal warning to run away as fast as you can.  You overpaid and now you can get out.  Run.  Then you can come back in 2 weeks or 2 months and buy it for $72,000 when the owners realize that is the true value.

Or.... you use the low appraisal as a way to get them to come down $200 or $1,000 and close at the higher price.  That is fine if you like the house and want to live there.  The appraisers are often wrong.

Pick your poison. /

Answer 2

Your agent wants to salvage the sale, but you may be better off to keep looking.