if the appraisal comes back to low the whole contract is basically up for negotiation again. the seller is not obligated to drop there price and neither is the buyer obligated to bring more money. if an agreement cannot be reached then EM will be given back to the buyer in most cases....
make sure your buyers agent is running comps before you submit an offer, appraisals are definitely an issue right now but not one that cant be avoided by doing your homework
I've never encountered a problem with the appraisal value on a McKinney, TX listing in the decade that I've been a Collin County, TX Realtor. In fact, the only two appraisals that did not come back at or above contract price during that time were both homes that were adjacent to a neighborhood amenity (greenbelt on one home and water feature on the other), where the appraiser and I disagreed on the value to be applied to the neighborhood amenity and not regarding the value of the home itself.
Keep the listing price based upon the last 90 day actual sale comps, which are what the Appraiser will be using, and you can pretty easily avoid this situation entirely.
Have a blessed day!
Seller if he owes more than house is worth might not be able sell the home based on appraised value .
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
If you were my client I would ask for a reduction in the purchase price to match the appraised value. You may even try to ask for more depending on the circumstances. When you are renegotiating the purchase price make sure you attach a copy of the appraisal so the seller and his agent can see the data you have.
Good luck with this purchase and in the end I think you will end up saving some money because of the lower appraisal. Also save that appraisal to possibly dispute your property taxes next year.
Good luck to you.
Your level of motivation to sell should determine your willingness to make further concessions! Our recommendation is to try to get the buyer to contribute additional money as well.