Asked by TedM, California • Wed Jan 30, 2013
House listed in Cathedral City, Calif in Oct 2012 for $225K. One week after listing date, buyer offered $231K with FHA financing using a Real Estate Purchase Agreement (RPA) without an addendum. There were 6 offers over listing, so sellers asked for Best & Final.
Two weeks after listing date, during the Best & Final process, the same $231K buyer, via an email from his agent, increased offer to $235K with FHA financing.
However, after Best & Final process, sellers chose an all-cash buyer at $225K. One week later, all-cash buyers back out.
Sellers then went back to the highest offer at $235K. The buyer's agent processed a new RPA increasing offer price from $231K to $235K and added an addendum stating "If property appraisal comes in lower than agreed purchase price of $235K, then buyer will pay the difference between the appraised value and agreed purchase price up to a maximum of $3,500." Both parties signed RPA before appraisal.
Four weeks later, the appraisal came in at $206,000.
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