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Native Texan, Home Seller in Texas

I have a contract to sell my home. The appraisal was $5,000 more than my sales price. The buyer wants to amend the sales price to add that $5,000.

Asked by Native Texan, Texas Fri Jul 13, 2012

The buyer's realtor tells me this has no effect on me - that it will be a 'wash' on the settlement papers. Is this true?

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Answers

11
I'm confused. Why would the buyer want to increase the sales price? Do you mean the buyer wants to increase the sales price and increase your contribution to his closing costs accordingly? If this is the case, you agent is correct. It will make no difference to you as the net will be the same. However, the Broker fees will also increase a little as the commission is based off the purchase price. The buyer will also be taking on more debt (he's financing his closing costs in other words), but that is of no concern to you.
0 votes Thank Flag Link Wed Feb 26, 2014
I bet in return for raising the sales price they are asking you to pay the same ammount in closing cost. Talk with you agent.
0 votes Thank Flag Link Sun Jul 15, 2012
Red flag folks! In order to add that extra $5000, would require the contract to be amended if not rewritten. Your listing agent should know this. If you and the buyer already agreed on the price and you are ok with it, there is no reason to change it. The buyer cannot get $5000 cash out at closing. If the price is changed the seller should reap the reward not the buyer. Plus raising the price you will have to pay more for the agents commission.. Talk to your attorney, and your listing agent. It is true that you the seller can give the buyer an additional credit toward closing, but normally, if they don't use it they lose it. If it is not broke don't fix it and close as is....Again talk to your attorney......it is vital......
0 votes Thank Flag Link Fri Jul 13, 2012
I've had this happen on several occasions when representing the buyer, I rarely suggest altering the contract. If things are oving along, let them. I tell the buyer this is just evidence of a good deal, take that and go to closing.

I can tell you that I wouldn't be surprised if jumping the sale price at this point arroused unwanted attention from underwriting, that might slam the brakes on everything as well - just leave it alone.
0 votes Thank Flag Link Fri Jul 13, 2012
Thanks for your reply - good point about underwriting.
Flag Sat Jul 14, 2012
You need to get a better explanation as to why they want to increase the sales price. Will it effect other numbers in the transaction? My guess is they aren't just raising the price of the house in order for the buyer to give you more money. :) What is your listing agent saying? You can always ask the closing attorney/title company to run two HUD statements and see how it changes your bottom line numbers.....run one as the contract states and then run another with the change of $5,000.
0 votes Thank Flag Link Fri Jul 13, 2012
Sounds like they are asking you to pay their closing cost and pre-paids, absolutely nothing wrong with that. Do it all the time.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Fri Jul 13, 2012
The question is why would the Buyer want to add an additional 5K onto the sales price? What does your Realtor say?
0 votes Thank Flag Link Fri Jul 13, 2012
The appraisal has no effect on taxes or contract unless the sales price is contingent on the appraised value. Most contracts are not written this way so I doubt if yours does. The appraisal is something that benefits you and your mortgage company and does not the seller. Your financing exhibit should state the appraisal may lower the price or you will have a way out and get your earnest money back should this comes in lower than agreed price. Sit back and enjoy the deal you got as the seller's agent will tell seller he has to close or be sued.
0 votes Thank Flag Link Fri Jul 13, 2012
You should consult an attorney to make sure it has no effect on you.
0 votes Thank Flag Link Fri Jul 13, 2012
Sounds kind of crazy...where is he $5,000 going to go? What does your agent say? Don't know why you would change your sales price, there can be tax ramifications plus all the costs at closing would go up by a percentage of the $5,000 (most likely including the commission) and it could cost you more money.

If you don't have an agent representing you, I would suggesting talking to an attorney.

Good luck!

Kathy

Katherine L. Morrison, Realtor
Broker/Owner
Team Realty Group
Alpharetta
404-697-4626
kathy@chipandkathy.com
0 votes Thank Flag Link Fri Jul 13, 2012
What is going to happen to the $5,000? It sounds like the buyer wants a 'seller's concession' of some sort so that he can sue the money for closing costs. That happens all the time and it's actually a good way of helping a buyer out. I would confirm with your realtor, though, that is the situation. If so, then they are absolutely correct and you have nothing to worry about.
0 votes Thank Flag Link Fri Jul 13, 2012
Buyer is asking me to change sales contract, increase sales price 5% and give that back at closing — in effect, getting the mortgage company to finance more. Sounds like mortgage fraud or maybe it's done all the time...? I will get more info.
Flag Sat Jul 14, 2012
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