Home Buying in 20878>Question Details

H2iaie, Home Buyer in 20878

Purchase price 700k., down payment 250k, loan requested 450k. But house appraised only for 675k. Are we legally obligated to buy the house at 675k?

Asked by H2iaie, 20878 Wed Jun 22, 2011

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Carlos Caraballo’s answer
Dear Buyer:

If you have an appraisal contingency just walk away or re-negociate the contract with the seller if not talk to a Real Estate Lawyer for legal advice.

Carlos Caraballo
Realtor
VA-MD
kvgcaraballo@gmail.com
202-679-0006
0 votes Thank Flag Link Wed Jun 22, 2011
No. You are not legaly obligated to buy the house, however, if you love the house and think it is the right house for you and you can see the value, then ask your agent to counter offer and try to lower the price, if seller refuses your choices are:
1- Walk away with your appraisal contingency
2- Buy the house anyways
Remember we are in a very funny housing market, even though Montgomery County, DC and 1 or 2 other prices went up 4.5%
Good Luck!!
0 votes Thank Flag Link Wed Jun 22, 2011
Did your agent put an Appraisal contingency in your Contract ? This protects you in the case that the property does not appraise for your purchase price. Basically this states that the seller is to be given written notice within a time frame from you and your agent of the appraised price and you are renegoiating your sales price. The seller can either agree to sell for this new price or if they choose not to you can walk away with no penalty to you. You sign a release from the contract and your earnest money deposit is returned to you.
0 votes Thank Flag Link Wed Jun 22, 2011
Did you have an appraisal contingency in the contract? If so, you can go back to the seller and let them know the appraisal came in lower than the sales price thus you want to re-negotiate the sales price.

Good luck!
0 votes Thank Flag Link Wed Jun 22, 2011
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