Home Buying in North Port>Question Details

Mvb0716, Home Buyer in Naples, FL

What happens if you put an offer & it doesn't appraise. Does t seller have to take appraised value and sell at that price.?

Asked by Mvb0716, Naples, FL Fri Apr 26, 2013

Help the community by answering this question:


When a home does not appraise you have the following options:

- Seller accepts appraised value (they are not required to do so)
- Buyer pays the difference between contract price and appraised value
- Buyer and seller agree to split the difference (not always an equal amount)
- Dispute the appraisal and provide other sales that support contract price
- Buyer walks away
3 votes Thank Flag Link Fri Apr 26, 2013
Exceptionally clear and concise answers from the real estate professionals. TU Danielle.

As you may realize, this is but one issue that adds to the CASH is KING purchase offer.
Then, if you pile onto the financed offer the VA or FHA nonsense, the buyer's prospect of success deminishes more.

The home sellers I work with are well prepared for this situation. You would NEED to increase your downpayment to close the deal.

Best of Success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, Fl
1 vote Thank Flag Link Sat Apr 27, 2013
Danielle has the correct answer as far as possible outcomes, but it all depends on your contract. Do you have a financing or appraisal contingency? What is your Realtor saying?
1 vote Thank Flag Link Fri Apr 26, 2013
Danielle nailed it. Nice job. What generally seems to be the best course of action in this case is her number three scenario but don't forget number 4.
1 vote Thank Flag Link Fri Apr 26, 2013
Thank you
Flag Fri Apr 26, 2013
Danielle gave a great answer.
You can only back out of the deal if the appraisal contingency was part of the contract, otherwise you are obligated to perform as agreed.
A financing contingency may not be an out, because the home could appraise for less and you are still approved for the loan.

Low appraisals are going to be a part of the market going forward because they are a part of an improving market.
When values are increasing, past sales are closing at lower prices than current market value; Hence: appraisals will come in low most of the time because they are based on lower-value closings.

Appraisers will eventually use an appreciation factor to compensate for the increase in value, but they are going to be hesitant to do so until we have a significant history of price appreciation.

Appraisers have taken a lot of blame for the runup in values during the boom, and the threats of being sued are still ringing in their ears. They are not going to take on any unneccessary risk.


Author of REAL ESTATE CSI: CONTROVERSY, SECRETS & INSIGHT (availalable early 2013) American Realty
Mobile: 941-306-7384


A Proven Professional Working for You!
18 Years Experience
0 votes Thank Flag Link Fri Apr 26, 2013
I agree with Danielle. If your agent added an appraisal contingency you may be protected or facilitated to renegotiate. If you are purchasing from a government agency (Fannie Mae, Freddy Mac, HUD ) it is very likely they will reduce the price to match the appraisal.

Tony Vega
Antonelli Realty
0 votes Thank Flag Link Fri Apr 26, 2013
The purchase price can be re-negotiated to favorable terms to the buyer, seller and lender. If you cannot come to terms, the contract can be cancelled.

Tammy Hayes, Realtor
RE/MAX Palm Realty
0 votes Thank Flag Link Fri Apr 26, 2013
Absolutely not. As long as your lender is still willing to loan you the amount that is on the contract then you may be obligated to buy the house at the contract price. This happens when you are financing less than 20 percent of the price.
0 votes Thank Flag Link Fri Apr 26, 2013
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