- the sales/purchase price will have to be renegotiated to no more than the appraised value so you can continue with the purchase (the most likely scenario); or
- you will have to make up the difference between the appraised value and purchase price as the mortgage will be based on the lessor of the two (the most unlikely scenario); or
- you can cancel the agreement, have your earnest money deposit returned to you, and walk away so you can look to buy something else.
1. Even if you agreed to the 225K, if the appraisal is lower, you can request a reduction in price based on the appraisal report.
2. If the bank refuses to negotiate a new price, you can walk away.
3. If you really like the house, you can pay the difference.
Hope you do have a happyending!
1866 Clayton Rd Ste 209
Concord, CA 94520
925 408 1479