This does happen sometimes. Recently I had to deal with this issue for one of my clients who were purchasing a home. The options were 1) The Seller could lower the price to appraised value. 2) The Buyer could agree to pay the difference, but would need the banks approval to do so. This option is unlikely in this market as the Bank will not approve this. That is fine, since I do not recommend this option. 3) The Seller can refuse to lower the price and the Buyer can cancel the escrow and get their deposit back. or 4) The Seller and or Buyer can ask for a re-evaluation of the appraisal. Option 4 is what the Seller and my clients opted for. The Appraiser was asked to complete a re-evaluation based on recent comparibles that justified the agreed up sales price. The Appraiser refused to make an adjustment in value. The Seller's ended up paying for a second Appraisal themselves and based off of current comparibles, including those used in the inital appraisal the agreed upon sales price was found to be justified. In the end, my client and the Seller were very happy and the escrow closed. My clients have since moved into their new home. Be sure to speak with your Realtor regarding your options before making any decisions. Good luck!
If the lender logs the appraisal with FHA then it stands on that property for 6 months. The seller might be willing to reimburse you for what you spent on the appraisal if he doesnâ€™t want that bad boy logged, just sayinâ€¦
he is familiar with the area, if he understands the positive features of the house justifying the value, and if he is informed about appropriate comps - which you'll be surprised to find out - many of them either are not familiar with the area or didn't look at the comps prior to the actual appraiser.
The adjustments and the comps to pick are up to the seller, but making sure the house is evaluated appropriately is something that often helps.
If the appraiser is not familiar with the area, makes wrong statements about comps, or fails to use appropriate comps - the appraisal can be "rebuffed" (appraisal slang), meaning the appraiser has to prove that his appraisal was done correctly.
If a new appraisal or "rebuff" don't work, negotiation between the sellers and the buyers helps to resolve the issue to mutual satisfaction. It's either meeting half way, or one of the parties closing the gap, or buyer not buying. Most of the time, the issue of the appraisal can and should be resolved...
Hope it will work out for you!
Beachfront Realty, Inc.
Now you find out if you hired an agent who can/is willing negotiate. Most are stronger at marketing....
You can still purchase the house, you will just have pay the difference.
Most homes that are sold by HUD with a little TLC can be sold for more ,
You'll have to decide what the house and neighborhood is worth to you.
Johnstone and Johnstone-