Appraisers are required to estimate future values. You are in a declining market.
Best is to negotiate a solution and get out, now.
Either lower the priced $5K
Get the buyer to meet you somewhere in the middle....
Or blow up the transaction.
If the appraisal is less than executed contract NO lender will loan money to a home buyer on over valued home. You then need to reduce sales price meet the appraised value.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
1. The buyer will have to come up with another $5K if they want the house (and have the cash to do so)
2. You will have to lower the price to meet the appraisal if you want to sell it.
3. You can ask the lender to order another appraisal which they may or may not do and may ask you to pay for.
4. See if your agent can supply the appraiser with any other info or comps that would warrant an increase of $5K for your house
5. You can lower price $2,500 and the buyer kick in another $2,500
Keep us posted and Good Luck
Jason Stevens, ABR,GRI
Kevin Flynn Realty, Inc.