Hi Nellie-

Listen to Paul's advice. The standard Arizona residential purchase contract includes an appraisal contingency. It's possible that you removed that comtongency, but if you didn't you could cancel. However, you might conside countering back at the lower price, too. Hopefully your agent can help you through that process.

Hi Nellie,

Getting your earnest money back because of a low appraisal depends on the verbiage in your purchase contract. There may or may not be an appraisal contingency clause. Read your contract and have your agent help you or hire a real estate attorney to help you if you do not have a buyer's agent. If you are still within your inspection period, you may be able to cancel & retain your earnest money, providing that there is something about the property you don't like. If the purchase is contingent on the property appraising for at least the purchase amount, then you will probably be able to back out & retain your earnest money.

Read your entire contract, because it does contain contract language dealing with the appraisal. Also, have your agent help you, but if you do not have a buyer's agent helping you, then you may want to hire a real estate attorney to assist you. So, my answer is ... it depends on your purchase contract.

Thanks for allowing me to serve your Real Estate needs!

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PAUL WELDEN
Buyer's Agent REALTOR
HomeSmart Real Estate

Basically only if you put that contingincy into the sales contract or if you are getting a mortgage and it is contingent upon you getting a mortgage, you could get a denial letter based on the fact the appraisal came in lower than the sales price. check your contract and the dates for notification of such. good luck Nellie.