They could put it back on the market, but it would have to sell to an all-cash or conventional-loan buyer and there's a risk that a new appraisal still would not come in higher. Have your agent use this info with the seller's agent to negotiate the price down for you.
Suzanne (Suzie) Glaser
LA VILLAGE REALTY
p.310.383.1141 | http://www.LAVillageREALTY.com
(a division of Power Brokers Int'l | lic # 01520327)
If this is Mr. Smith the equity seller & he didn't receive multiple offers for higher than $462K where the buyer says "sure, I'll pay cash for whatever the difference is between the appraisal & our offered price",,,then you need to go to Mr. Seller & simply state "We love the property, unfortunately I cannot get my loan unless the property appraises, $480K is too high, I can close in 30 days or less, can we agree on $462K?
Realtor Since 1996
Having said this, negotiate with the seller to reduce the price. It's not your fault that value is declining. Additionally, in many locations, condos are the first properties to devaluate in down time market and the last ones to valuate in up time market. If you need an agent to represent you or know someone, I'll be glad to help.
Have a blessed day!
Nextage Capital Advisors
1521 Wilshire Blvd
Los Angeles, CA 90017
Seller might either have to reduce the sales price OR short sale approval from the lender
Your buyers agent should be assisting you with these issues
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Why was the appraisal revised?
Fighting an FHA appraisal is not an easy task. You have a better chance of renegotiating with Seller.
Or, if this appraisal truly does reflect the fair market value of the property, then you should renegotiate the purchase price.
Feel free to click on my picture to the right and contact me if I can be of any further assistance. Best of luck.
Your best option is to negotiate with the seller for a price reduction. Generally they'll lower the price to make the deal happen instead of putting it back on the market only to risk the same issue happening again. Even if they don't reduce it $18k, maybe there is a happy medium so they come down a bit and you kick in a few $$ to make it work.