Profile picture for pmgodfrey

my appraisal came back lower than the price on the contract. Can I renegotiate?

  • May 08 2011 - US
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Answers (6)

Profile picture for Connie Klemme
take a good look at your contract, there most likely was a clause that said it was contingent upon acceptable financing and contingent upon a specific appraised value.  If you don't have a agent or a lawyer, you might have one or the other review your contract to advise you on it. 
It's highly reccommended to renegotiate but the seller might not be able to go lower, it may be that you simply find another house.
  • May 09 2011
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Sometimes the Seller cannot or will not take less for a home, even if the appraisal comes in low.  Whether we are representing the seller or the buyer, one of us attends the appraisal if at all possible to be sure the appraiser doesn't miss something of value, such as new windows, etc.  You could ask the appraiser for the comps he or she used.  Perhaps the comps were not the best/most accurate comps for the home you are buying.  You can ask for the appraiser's contact info, so you can call or e-mail him/her.  With the new rules, lenders cannot choose the appraiser or speak to the appraiser, so most appraisers are requesting a copy of the Purchase Agreement before they start the appraisal.  You can ask for another appraisal, but as the buyer, you would pay for it. 
  • May 09 2011
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Yes. And I would strongly suggest it. Seller will have the right to turn down the offer, but if the appraisal has come in lower than what the price the home is listed at, they will likely keep running into the same scenario down the road if they don't budge on the price.
  • May 09 2011
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Yes, negotiating is always an option. You should review your contracts they typically have appraisal contingencies written into them. However, sometimes appraisers make mistakes and give lower values to properties that are worth more. If you have a realtor you should consult him/her and discuss the accuracy of the appraisal and possible renegotiations.
  • May 08 2011
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Thank you for your question.  Couple of questions, do you have a Realtor working for you and are you the buyer or the seller?  Either way, the answer is, yes, you will have to renegotiate.  If you are the buyer, I would recommend making the seller reduce the price to the appraisal price.  If you were to walk away, the next buyer's appraisal will come in close to the same so the seller really has no choice.

If you are the seller, prepare to reduce or ask the buyer to bring more cash.

Good luck, hope this helps.
  • May 08 2011
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Profile picture for wetdawgs
Did you have an appraisal contingency in your offer?
  • May 08 2011
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