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what happens if te house you are trying to buy appraise for less than the asking price ?

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September 06 2009 - Columbus
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Best Answer
Nancy is correct.  More than likely you had an appraisal contigency in your contract (if you are working with a buyers agent) and if so, you will need to renegotiate your purchase price with the seller.  This had been happening a lot lately.  More than likely if the seller wants to sell, he is going to sell for the lower price.

Best of Luck!
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September 08 2009
1) You can attempt to renegotiate with the seller 

2) Have your realtor and lender review the appraisal to make sure there are no errors and proper comparables/ adjustments were used.  An appraisal review can be asked for or the appraisor may change their valuation based on your information provided.

3)  Your lender can order a second appraisal to see if the underwriter will consider the new appraisal.

4)  If the seller is unreasonable,  you may need to walk away from the deal and retain your earnest money.
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September 01 2010
This is something that is happening much more frequently which is why it is so important to have an appraisal contingency in the contract. With this contingency you, as a buyer, are not forced to purchase the property above the appraised value. If they seller is unwilling to bring the contract price in line with the appraisal then you have the option to cancel the contract. I have had a few instances where the seller has not been willing to adjust the price to the appraised value and later regretted the decision as they ended up selling the property for less a few months later.
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September 01 2010
If you are getting a mortgage, the lender will not loan you the money if the house does not appraise at or above the purchase price. Most contracts have contingency clauses regarding being able to get a mortgage and having the property appraise.
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September 01 2010

Number one answer: neogotiate a price reduction with the seller!

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September 01 2010

You can go out and get a second appraisal but your lender won't be able to accept it for financing. If it appraises for more you'll have to make up the difference in cash.
If you have reason to believe that the appraiser did not do a good job you could contest it with the lender or switch lenders. 
Best of luck

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August 30 2010
september of 09 people... Reading skills help.
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August 30 2010
This happened to one of our sellers. Each transaction is different, but Bob's 3 choices are best. My sellers decided to get their own appraisal from B of A. The second appraisal came in less then the first one. So they agreed to lower the price.
Ask yourself how much do you want the house and realistically what are your options.
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August 30 2010
I ran across this very same scenario..First of all, if you are the buyers agent you need to make sure that you have the 'Appraisal Contingency' form in with your contract for purchase. And make sure that the due diligence period does not run out before you get the appraisal from the mortgage company. Then submit a form to seller and or sellers agent to lower sale price on the purchase of the home. If the seller is unwilling to reduce the sale price you have one of two options...cancel the contract or make up the difference with cash to purchase the home. Hope this helps!!
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August 30 2010
There are some great answers here and I would follow with the advice of offering the appraised value unless you are prepared to make-up the difference in cash. I guess it will really come down to how bad do you want the house. If the seller is not willing to let the house go for the appraised value then you will have to decide whether you want to try and keep negotiating or find another property.

Good luck!
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September 08 2009
offer the appraised value. ESPECIALLY if it is an FHA appraisal, as a future FHA appraisal is likely to reference this one, the sellers are now between a rock and a hard place...
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September 08 2009
Offer the appraised value or get another appraisal. If I am the buyers agent I would offer to only pay the appraised value.

And, the lender will use the lower of the two.  Don't waste your time on another appraisal.  If you have an appraisal contingency, its time to re-negotiate.

Options are:

1.  Keep the original sales price and the loan will be based off of the lower sales price.  This means you would need to make up the difference in cash. 

2.  Meet somewhere in the middle.

3.  Seller agrees to sell the house to you for the appraised value.

I would recommend #3 unless you absolutely have to have that house.  If you don't have the extra money, then #3 is really the only route. 
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September 08 2009
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You obviously dont know what you are doing, thank the appraiser for not allowing you to overpay.LOL  Offer much less.
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September 08 2009
Offer the appraised value or get another appraisal. If I am the buyers agent I would offer to only pay the appraised value.
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September 08 2009
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You likely will pay less.  Simple.  
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September 07 2009
What does your contract say?  I think, If there is a contingency saying the sale only moves forward if the house appraises for 'x', then you and the seller can try to negotiate around the difference or terminate the contract.  If the contract does not have an appraisal contingency, you may have to come up with the difference or see if the seller will let you out of the contract.  Are you working with a buyer's agent?  Your agent should understand the terms of the sale and be able to give you advice.
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September 07 2009
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Then you thank the appraiser for preventing you from overpaying.
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September 06 2009
 
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