Zillow Advice: Buying Process - what happens if the appraisal is less than the offer?

Many contracts have an appraisal ...

Sun, 07 Jun 2009 13:51:00 GMT

Many contracts have an appraisal contingency which means that if the house does not appraise the buyer can walk away with their earnest money. If you area buyer, you can use the appraisal to renegotiate the price with the seller. No bank will lend more than a house is worth so it is in the owner's best interest to sell it for the appraisal amount since few buyers will be willing to bring cash to the closing table to cover a low appraisal.

The first questions to ask ...

Wed, 26 Aug 2009 11:20:00 GMT

The first questions to ask are 1) how far off is the appraisal and 2) what is the home worth to you? I have seen appraisals off by as little as $1,000. Then the seller, the buyer and/or the agents have split the difference to make the transaction work.

I have seen poor appraisals where an appraiser has not used generally accepted appraisal techniques and when reminded of his or her duties & responsibilities (accompanied by better comparable sales data) has adjusted the opinion of value to better match reality.

Having an experienced realtor represent you as either a buyer or a seller should reduce the risk of low appraisals significantly. This is a wonderful question to ask the realtor you are interviewing!!! (What in your experience can be done if the home I am trying to buy or sell hits a snag because the appraisal comes in $5,000 low?)

then you may have to open ...

Sun, 07 Jun 2009 09:45:00 GMT

then you may have to open your ewallet to make up the difference. the lender uses the appraisal to determine the value of the property and the amount it will loan you.

palmdalemortgageguide.com

You overpaid! Check ...

Sun, 07 Jun 2009 08:58:00 GMT

You overpaid!

Check out how apprasials have been manipulated in recent years.

http://appraiserspetition.com/

Most contracts have an "out" ...

Sun, 07 Jun 2009 02:04:00 GMT

Most contracts have an "out" for the buyer if the house appraisal doesn't meet the sales price. In my experience you can end the first contract and start a new one for less sales price or as Phil says do some amendment to reduce the sales price and other numbers. I'm really hoping your agent or legal counsel already knows this?

Here in California we have ...

Sat, 06 Jun 2009 21:36:00 GMT

Here in California we have an Appraisal Contingency as part of the Residential Purchase Agreement that allows the buyer to walk in this situation.