If you are a buyer competing for a home with others, there are strategies to make sure you are competitive in your offer. Since over 37% of our offers are cash buyers, they don't even have a loan or appraisal contingency. Plus, they can close in 10-15 days so they win against a buyer who even has a loan. Many buyers with loans actually guarantee to pay the difference from the appraised value if it comes in lower to remove that 'negative' from their selection against a cash buyer. When that is the case, it's common for an agent to attend when the appraiser appraises the home. While it is illegal to try to influence the value findings of the home, it is not illegal to provide data that might not be available to an appraiser from another source- such as other homes, how many offers that they received, the offer price accepted (even if it hasn't closed yet), details on amenities and condition on some of the comparables that they might be considering. More data, means the appraiser has more information to provide a more accurate valuation and possibly come in closer to the offered price if it makes sense.
So as you consider which option you take, consider the alternatives that the seller has in response. This is the time for a good negotiator on your side. Good luck!
Depending on the type of loan a buyer is getting and their down payment, the options in general are:
1. Re-negotiate the purchase price with the Seller
2. Pay the difference (if a Buyer were not putting very much down to being with and need to bring in the difference)
3. Don't complete the purchase
Many markets are changing for the better, so it all depends on the details of your contract and situation please speak with your agent & your lender as they will know best your contract and loan details and what applies in your State..
The good thing about all of this is, the home's value--if it were in Sacramento-- will go up exponentially in the next 3-6 months, and so the average buyer here isn't worried about buying "above market" or being upside down. They know the market and value will catch up with them quickly and gain more value quickly.
If the market in your town is the same way, I say go for it!! Buy the home.
You are in Williamsburg, VA, if the market is anything like Sacramento pay the difference and close the deal. Nothing wrong with asking the seller to reduce the price to the appraisal price. If a short sale or REO may not happen or take too long.... Perhaps by the time you get the agreement to reduce the price the price may have gone up to what you offered.