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Answers (7)
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
Whomever wants the deal most (which can mean buyer, seller, agents, or some combination thereof). Or no one and the sale does not close unless someone can present a compelling argument to an appraiser (I have been able to do this before, but it's a challenge in this market).
- Mack McCoy
- Contributions:1108
Perhaps the financing section of your Purchase & Sale contract provides for this?
- If its lower, that means you were about to overpay,
I disagree. Appraisers, heaven love them, do not usually know the market better than buyers do.
- If its lower, that means you were about to overpay,
I disagree. Appraisers, heaven love them, do not usually know the market better than buyers do.
- Jimmy38
- Contributions:234
If the appraisal is lower than the contract price then either have the seller lower the price to match the appraisal or walk away!
- CORONA NICK
- Contributions:2218
If its lower, that means you were about to overpay, and in this market, I would make the seller lower the price, or walk... assuming your contract has an appraisal provision... also, as far as a REA contacting the appraiser, that is unethical and illegal according to the new code of ethics that appraisers must follow, at least if your getting a loan that will eventually end up with Fannie or Freddie...
- Alise Roberts
- Contributions:2236
All depends on the paperwork in the contact but typically nobody HAS to pay the difference. Depending on the type of loan the buyer is attaining, they may be able to pay the difference via the down payment. Or if the amount is small, it may be worth for the seller to pay the difference. If the appraisal is accurate and the seller has a need to sell, then it would be wise for them to pay the difference since most buyers would need an appraisal...and realizing that that is the most the home can sell for. However, if the appraisal is questionable, the listing agent should try to get an amended appraisal. They can either order a new one that is approved by the buyers lender or sometimes a higher level underwriter can determine if the appraisal is inaccurate and overwrite it. There are several avenues the seller can take, however, the listing agent should spearhead this contacting the buyer lender or appraiser (if that info is available to them) to provide them with a list of comps and reasons as to why they feel the appraisal is not accurate. Obviously there was reason it was priced the way it was as the home attained an offer at the price it came in at.
- wetdawgs
- Contributions:26762
If the appraisal is lower than the offer amount, there are many options:
If you have an appraisal contingency in the offer, you can withdraw at this stage.
The seller may (but doesn't have to), lower the price of the house to meet the appraisal level.
OR, if you really want the house you can pay the difference.
Good luck at figuring it out.
If you have an appraisal contingency in the offer, you can withdraw at this stage.
The seller may (but doesn't have to), lower the price of the house to meet the appraisal level.
OR, if you really want the house you can pay the difference.
Good luck at figuring it out.
- Jeff Konstant, "jkonstant"
- Contributions:1970
Nobody is required to pay the difference. The seller does not have to lower the price and you do not have to pay more than it's worth. If the difference is minimal, you should be able to come to terms. If the difference is great, you should fire your realtor for being too incompetent and incapeable of keeping your offer in line.
What happens if the appraisal is lower then the loan amount?Who pays the difference?
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