Basically, when the appraisal comes in short, the bank will refuse the loan thus giving the buyer the legal right to cancel the deal and get their down payment back (this is assuming you have a mortgage contingency clause in the contract of sale).
You can try to renegotiate the price after the fact, however, the seller has no obligation to lower their price. In situations like this there are several different remedies. Firstly the seller can lower their price. Secondly, the purchaser can raise their down payment. Thirdly there could be a combination thereof where both the buyer and seller contribute to make it work.
That being said, it all depends on how goods of a deal you are getting. If the property is a hot property, the seller may have several back-up offers whereby he or she would sooner move to a new deal rather than lower their price.
If you want to discuss this further or need further assistance, feel free to contact me direct. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales/ e-Pro Realtor
Fillmore Real Estate
Office: (718) 252-2000/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com... more
In addition to owner occupied, the maintenance is base on the prices that owner occupied verse tenant occupant because the lower the maintenance also plays a role in the price the building per apartment gets.... more