Help! We signed an offer on a house that was foreclosed on and then bought by another seller. Our appraisal came in several hundred thousand less than our offer.
The agent lied to us about the value of the house saying the 1st buyer had several real estate deals included in the final cost of the foreclosure. This was not true because we checked the County records and these other deals did not exist. We are 50 k into the escrow already and will lose this if the sellers will not lower their price. Our lawyer is going over the docs now. We want to offer the appraised value, which is only fair, but what can we do with a lying agent? We do not want to deal with him, when we asked him for proof of these "deals" he could not come up with anything. Can we fire him?

Okay, how exactly did your agent lie to you? I'm not getting that. Did he tell you what the seller bought the property for? Is that what he told you? Is that what you based your offer on?

Anyway, "value" of properties may differ from an agent's opinion of value and the appraiser's opinion of value, especially the lender's appraiser. Is this a financed deal?

And what do you mean you'll lose "50 k into the escrow"? Are you saying that your contract states that you have to buy the property no matter if your appraisal comes in lower than agreed purchase price? Did you waive the appraisal contingency?

Zoo, can you expand and give more specifics? I can see why you might be hesitant as the appraisal came in 'several hundred thousands' below your offer. A couple of questions:
* Is this a financed transaction? If so, then it becomes unlikely that your lender would actually fund on a property that is so overpriced (at least as reflected by the appraisal).
* How did you check County records? I ask as in my market, the online searchable database is typically several months outdated and due diligence could only be reasonably be performed by physically going to the respective County office.
* On what information did you base your offer? On comparable market data? On your agent's statements regarding the previous transaction? Based on the limited information you provided, I'm assuming this is a high-value property and one for which potential buyers are a bit more experienced/sophisticated (who are not likely to rely on 'hearsay' to base their offer).

With a bit more information from you, forum members could provide better-guided advice.

who ordered the appraisal, you or the lender?

Is the agent the seller's/listing agent? do you have your own buyer's agent? who is representing who?

If the agent represents the seller, you cannot fire him. If the agent is your exclusive buyer's agent, you can try to fire him, but there will be complications.

were you shown a comparative market analysis (CMA) performed by any agent, prior to offering on the home? several hundred thousand is a big discrepancy.

your lawyer will be your best resource in this matter.

If the agent has in fact lied or deceived you, you can file a complaint with the state licensing board, and file a complaint with the local association of Realtors (if he is a Realtor).