If the appraisal comes in higher that what you offered you did a good job.
If the appraisal comes in lower you got to excited.
If the appraisal comes in about the same then you offered about what was expected.

If your offer is more than the appraisal and you had an appraisal contingency then you should either 1 walk away or 2 have the seller drop their price to the appraised value OR LESS. No one should overpay for a house. It is bad enough they are likely to drop even further in value over the next 2-3 years. Overpaying now just makes that feel even worse.

Hi Christina,

When it works in your favor, you negotiate. When it doesn’t you don't. Remember the appraisal is for you and your lender. Not the seller.

April does a good job of explaining the rest of the story.

Best regards,

"Rocky" G.H. Hawrysz, Realtor®, Broker Associate, e-PRO®, ABR®, SRES®
Prudential California Realty
(209) 444-6610 - Direct Office Line
E-Mail: rocky@prucalifornia.com
Web Site: http://www.TeamHawrysz.com
Lic.: 01468373

Christina,

When using the California Association of Realtors (CAR) Residential Purchase Agreement, the form allows for a standard appraisal contingency period of 17 days. That being said, you have the option to request fewer days, more days or waive your appraisal contingency. It is all a negotiation and a decision that needs to be made when writing the offer.

If the appraised value returned is less than your offer, you then have the opportunity to renegotiate your offer price or decide to withdraw from the contract, siting your appraisal contingency. I would never recommend a buyer pay more than the appraised value.

If the appraised value is higher than your offer, good for the buyer and their realtor for negotiating a good deal.

April Tavares, GRI, ASP
Realtor, GRI, ASP
April@AprilTavares.com

Your offer is contigent on the appraisal- but if the appraisal comes in less than your offer, the price will have to be reduced because the bank will not fund your loan.

John & Sarena Villaescusa
Realtor/Broker/Owner
Keller Williams Realty
Cell- 562-818-2671
Email- Johnv@kw.com
Website- http://www.VGroupHomes.com