Home Selling in Columbus>Question Details

Leslie Imsan…, Both Buyer and Seller in Hilliard, OH

Buyers are walking after appraisal came in lower than offer. Offered to honor appraisal. Spent 2k to fix remedies.Contract on new home. Any recourse?

Asked by Leslie Imsande-jones, Hilliard, OH Thu Nov 24, 2011

Buyers made offer-we honored. Corrected all remedies to repair-spent 2k. Made offer on new house- a fannie mae-DO NOT want to lose it. Put down 2k in earnest money. Buyers are claiming appraisal came in to low-however-we honored appraisal. House is packed. Buyers are saying they are walking due to appraisal. Do we have any recourse againest buyers? We are out about 5k, including inspection on new home, earmest money on new home and fixing their remedy to repair list. Do we have any recourse at all?

Help the community by answering this question:


... " contract contingent upon property appraising at purchase price or higher"...
Hopefully above clause ( textbook at that) was termed in the buyers initial offer/contract...( which doesn't sound like the case)

IF it was then then there ya go = problem solved
0 votes Thank Flag Link Fri Sep 14, 2012
where is your agent on this one? (or are you the agent)??
0 votes Thank Flag Link Wed Jun 6, 2012
Technically your contract was for a specific price, even if you are willing to offer a lower price, the contract was for a different price and usually there is a contingency for obtaining financing. If you want to sell this house to those buyers, your best approach is to get your broker to talk with their broker and try to sweet talk them into a new deal. As far as forcing anything I think the best you could do is maybe end up with earnest money but that will likely be a fight. I truly wish the best, but there is no clear path here. If it were me I would see what it would take to get them to buy the house, even it that is a real low-ball offer, at least it restarts the conversation and negotiation.
0 votes Thank Flag Link Fri Nov 25, 2011
Check with a lawyer regarding legal recourse.

However, recognize that it's almost impossible to force someone to buy a home . . . even if you have a valid contract. (You might be able to retain whatever earnest money deposit they put on your home. Your lawyer can advise you on that.)

They've obviously gotten buyer's remorse. What you and your agent have to try to do is reassure them that your house is a good value . . . even better since the appraisal resulted in a lowered price you're willing to sell for. Your agent (and the buyers' agent) have to persuade the buyers that they won't find another home with the same qualities, in the same (repaired/improved) condition. Yours is the best buy. If they're serious about buying at all, then your house is the top choice for them. That's the argument that has to be made.

One other point: Hopefully your offer on the new house contained a financing contingency. If so, and your sale falls through, then obviously you won't be able to get financing on the new home. That should protect you and your earnest money deposit. If the sale still falls through, you'll be out the cost of the inspection on the new home. But--possibly--you'll get your earnest money back from your hoped-for home purchase, you'll be able to retain the earnest money deposit from the bailed buyers, and you've done repairs that'll make your present house more liveable . . . and easier to sell if/when you put it back on the market.

Again: Check with your Realtor and with a lawyer.

Hope that helps.
0 votes Thank Flag Link Thu Nov 24, 2011
Don Tepper, Real Estate Pro in Burke, VA
Your agent and or attorney can best advise as to your options, consider a consultation.
0 votes Thank Flag Link Thu Nov 24, 2011
Leslie, I'd ask to see the appraisal and also ask for a letter from buyer's lender denying the loan. It sounds fishy because you are willing to sell for the appraised amount. You probably do not have any recourse because the contract probably doesn't say that the buyers have to move forward even if you meet the appraised amount. HOWEVER, if you are willing to meet the amount then technically their loan isn't denied and therefore that's not a reason to back out. Talk to your broker and have your broker talk to their broker. Maybe get an attorney. You may have recourse here if you can prove their loan wasn't denied (which it should have been if you met the appraised value).

I am NOT an attorney. Good luck.

0 votes Thank Flag Link Thu Nov 24, 2011
Have your Realtor and Real Estate attorney review the terms of the contingency, to determine your options.
0 votes Thank Flag Link Thu Nov 24, 2011
I really doubt it if you can verify the low appraisal. Most contracts bring up the possibility of a low appraisal and what to do if one comes up. Most of the ones I have seen said the buyer gets all their money back. To know we would have to see how it is written.
0 votes Thank Flag Link Thu Nov 24, 2011
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