appraisal contingency

[armany]

What is the name of your state? MD

I don't know the best place to ask this question

I am in process of buying a house for a price which i was believed to be 40,000 under its value (by the real estate agent who represents both me and the seller), however, the appraisal was done few days ago and the property was priced only 5,000 above my offer. Considering the settlement fees and closing costs I will be paying above the appraisal value. The agent tells me that the appraisal contingency does not apply to me since the value does not take in to consideration the closing costs, and that I will loose my deposit if I do not go to closing. Of course I am not sure if I can believe the agent (cause they are after their commission)

I have been told by friends that if i go to arbitration i will get my deposit back, but because of conflicting answers I am asking you for your advice

Thank you

[nextwife]

What appraisal continquency did you place into your contract? What, exactly, does it state regarding how much the house must appraise out at?

[efflandt]

Maybe you have not heard the news that home prices are sagging a bit and taking longer to sell due to the home loan shakeup. Did you have some reason to believe that the seller was anxious to sell at significantly less than current fair market value?

Look at it as getting a better deal than you might have gotten a year or two ago. Or were you intending to flip it for a quick profit.

[PghREA]

Closing costs, lenders fees, etc have nothing to do with the appraised value of the home.

If the appraisal came in $5,000.00 more that the purchase price of the home, than for all intents and purposes , you got the house at $5,000.00 under the appraised value.