BigDogX,

Is the appraisal your lenders ordered appraisal?

If so, no, you don't have to pay a difference.

That's the simple answer to your question.

Stew Keene
North Phoenix and Scottsdale Area Specialist Realtor

Appraised value is really meaningless....the VALUE of a home is what someone is willing to pay for it at that point in time. Based on you being the best offer at 300k, that is the current value.

Quick Answer:

As the buyer, you paid for the appraisal and it is your information. Great news for you! The value was higher than the agreed purchase price.

If the appraisal came in lower than the agreed purchase price and is part of a contigency in the purchase contract, it would be important information to share with the seller. At this point, you could cancel the purchase contract or negotiate a new purcahse price based on the appraisal.

Bigdogx,

Thanks for your question. In any residential purchase (Short Sale, Bank Owned Property, Traditional Sale, etc...) a Buyer is not required to pay the Seller the difference between the agreed upon purchase price and the current market value as indicated by a recent appraisal when the appraisal comes back above the purchase price. This is great news for the Buyer when this occurs because this means that the Buyer has positive equity in the home. This is particularly beneficial in today's uncertain and declining real estate market. This positive equity is considered a paper gain and is not actually realized until the home is sold. As a homeowner, we all hope that our homes will appreciate in value. This is afterall one of the financial benefits of home ownership.

In the event the appraisal comes back below the agreed upon purchase or sales price the Buyer's lender (If the property is being financed) will not authorize the sale. This finance contingency is discussed in the Purchase Contract you have signed. If this occurs there are several options for the Buyer. The Buyer may cancel the purchase contract and walk away from the purchase or may attempt to negotiate a new purchase price to match the current appraisal.

I hope this helps!

Allen Madril
Realtor, CRS, ABR, GRI
Phoenician Properties Realty

if you have submitted an offer for 300k and the bank has accepted and gone into contract...... the appraisal amount means nothing. if they accepted, gone into contract....... all parties have signed, sealed and delivered, the appraisal is not an issue,

Thanks for the answer - also, would the buyer be at all responsible for any other costs you can think of? Thanks

No, if you have a ratified contract and the sellers bank has signed off on it the buyer pays $300,000.