Hi, and thanks for allowing me to use this site.
I am planning to buy a town home in Minnesota, I have already made an offer and my offer has been accepted. I am getting an FHA loan, and one of the requirements is that the home be appraised before the loan is funded.
I just spoke to my real estate agent today, and he told me that if the home is appraised for more or less than the asking price, my contract becomes null and void.
Closing has been scheduled for Monday 4/28/08, and I have already given my landlord a notice, and have started packing my belongings into boxes preparing for the move.
I am beginnning to panic and I don't know what to do at this point.
Please advice me what can go wrong and how I can avoid the stress I feel right now.
I am a first time home buyer, and I really like this home.

Thanks.
Ltee

I understand that if the home is appraised for less than the asking price it would be a problem, since they would not loan money for more than the value. But why would it be an issue to be worth more, that sounds like bull to me. In fact we are always glad to see it valued at more, since it means the buyer is getting a good deal. But it sounds like the agent is doing something shady?? At least to me, I would go and talk to the broker the agent works for and ask what is going on. Also go and talk to the real estate attorney you are using for closing and let them look over your contract on the home.

Also is this "your" real estate agent or is this the selling agent for the seller?