Question Details

Dnir2b, Home Buyer in Patterson, CA

Is it common to ask someone who has made an offer on a home to pay the difference in cash between the offer and appraisal price?

Asked by Dnir2b, Patterson, CA Sun Nov 13, 2011

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4
In highly desireable areas with low sales activity, you can be assured you will be 'required' to pay the difference. The restrictions the bank places on the appraiser assures a low appraisal. Be aware, you saw the value in this home or you would not have made an offer to purchase. The bank process is gaming the situation in their favor.
Try a local lender.
0 votes Thank Flag Link Mon Nov 14, 2011
I would not say it is common, but there are more instances where the buyer and seller split the difference. It all depends on the situation (and everyone is different). Open Communication usually helps make these situations amicable.

Good Luck.
0 votes Thank Flag Link Sun Nov 13, 2011
Not normally, but it is more common on a bank owned home for it to happen. Especially if the bank knows you have offered more than the home is worth in a highest and best multiple offer situation , which savvy buyers may do knowing an appraisal contingency is in place.
0 votes Thank Flag Link Sun Nov 13, 2011
Hi Dnir2b,

It's not uncommon....It depends on whether the buyer can afford to pay the difference and if the type of financing they're using allows them to. If the financing is a VA loan, then the buyer is not allowed to pay any difference. The buyer needs to decide if they want to pay the difference in cash - do they want the house enough to pay the difference? Another option might be to meet half way - if the seller will agree to that.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sun Nov 13, 2011
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