Home Buying in 01843>Question Details

hector h,, Other/Just Looking in 03079

Do sellers usually work with the buyer when the house is appraised at a much lower price than the selling price?

Asked by hector h,, 03079 Tue Mar 26, 2013

and also after getting the house inspected will seller make the necessary fixes ? SInce its close to a thousand in the inspection and appraisal i wanted to know....

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I have had deals go both ways - to closing and into oblivion.
The factors are: the amount of difference in the value of the appraisal and the agreement.
The amount that the buyer truly wants to own the property.
The uniqueness of the property.
The ability of the seller and or buyer to absorb the difference.
If the fixes needed are cosmetic, dangerous, optional, mandatory, etc.


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1 vote Thank Flag Link Wed Apr 3, 2013
I have seen it happen many times but it really all depends on how large a difference the appraisal is versus the agreed upon sale price. If its just a few thousand dollars versus tens of thousands the seller may be inclined to lower the sale price to the appraised value to ensure the sale goes through rather than start from scratch with another buyer.
0 votes Thank Flag Link Tue Mar 26, 2013
It never hurts to ask. It depends case by case, but if the lower appraisal puts the loan approval at risk, then it is likely the seller would be willing to renegotiate since the alternative would be for you to back out with full return of deposit.

Of course, it would help if there was terminology in your P&S that specifically protects you in the case of appraisal coming in under purchase price.
0 votes Thank Flag Link Tue Mar 26, 2013
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